Commenting on the G20 communique, Greenpeace executive director John Sauven said:

"Tacking climate change on to the end of the communique as an after thought does not demonstrate anything like the seriousness we needed to see. Hundreds of billions were found for the IMF and World Bank, but for making the transition to a green economy there is no money on the table, just vague aspirations, talks about talks and agreements to agree."

He continued: "As the world races towards a climate crisis, G20 leaders have been rearranging deckchairs on the Titanic while maintaining the same catastrophic course.

A clear financial commitment to green investment and jobs could have helped kick-start a green economy and tackle climate change. The G20 have let the world down by missing such a vital opportunity, ahead of the Copenhagen climate summit at the end of the year, to resolve these twin crises simultaneously."

He added: "It seems the only person in London who was serious about tackling climate change was Prince Charles, who arranged to meet world leaders to press for protection for the world's forests as a way to cut carbon emissions."

ENDS

Greenpeace - 0207 865 8255

Responding to the news that the UK government is set to commit £15m to a World Bank scheme which aims to reduce tropical deforestation, John Sauven, executive director of Greenpeace UK said:

"It would be unthinkable for the next phase of the Kyoto protocol not to address tropical deforestation, which is one of the biggest drivers of climate change. But world leaders can't use this as an excuse to avoid slashing emissions in their own countries - we urgently need to do both.

"What's more, our government should think twice before pumping more money into the coffers of the World Bank, which has a poor track record when it comes to illegal logging. We need an agreement which benefits indigenous forest communities around the world."

The bank's Forest Carbon Partnership Facility was unveiled today in Bali. The bank has set a target of $300 million overall for the facility - the UK's capital contribution represents 10 per cent of the overall target.

The World Bank stands accused of failing to tackle uncontrolled industrial logging in the Democratic Republic of Congo. A Greenpeace report, released earlier this year and entitled "Carving up the Congo" shows how the emphasis placed on logging as a means of developing local economies has undermined the bank's stated position as a protector of tropical forests.

For the full report visit www.greenpeace.org.uk/media/reports/carving-up-the-congo

For more contact Greenpeace on 0207 865 8255

ENDS:

NOTES

• Indonesia and Brazil are the third and fourth largest global CO2 emitters because of the clearing of their rainforests for commodities like timber, palm oil and soya. Dealing with deforestation and emissions on this scale requires a well-funded, well-thought out, global approach.
• Since 1997 about 13 million hectares of forest (mostly tropical) have been destroyed per year - an area the size of Greece lost every year.
• Greenpeace has proposed an international mechanism (TDERM), to be overseen by the United Nations; it has the potential to raise funding in the range of several billion US$ per year to finance urgent action to cut emissions from deforestation.
• The proposal would allow industrialised countries like Britain to meet a percentage of their emissions reduction targets through the purchase of "units" from the scheme. Proceeds from the sale of these units would be used to transfer resources between rich countries and poor ones to prevent deforestation.
• Any such scheme has to guarantee the participation of the indigenous people of forest countries, and to make sure that they benefit from any transfer of resources from the North to South.

The World Bank's International Finance Corporation (IFC) is financing a Singapore-based trading group, Olam International Ltd, which has been involved in trading illegal timber in the rainforest of the Democratic Republic of Congo (DRC). The world's 'local bank', HSBC, is also providing financial services to the company, in breach of its environmental policy. Olam is today expected to report much improved profits in its half yearly financial results.

Nearly three weeks ago, the DRC provincial authorities seized illegal timber shipments from Olam International in the remote province of Bandundu. The area's Forestry Minister, Coco Pembe, accused the company of trading illegal timber, cut by local companies whose logging permits have expired.

These seizures of illegal timber follow revelations in Greenpeace's report earlier this year 'Carving Up the Congo' showing that in 2005, Olam was awarded three logging titles covering over 300,000 hectares, in violation of a 2002 moratorium which was supposed to stop the allocation of new logging titles in the DRC. Whilst Olam claims to have since handed back one title, the other two are subject to a legal review expected to report later this year. The report also revealed that Olam trades in timber from third parties whose destructive logging operations cause social conflicts, massive environmental damage and significant loss or state revenue.(1)

Olam is funded by the World Bank Group, whilst HSBC and Royal Bank of Scotland (RBS) are providing financial services to the company.

In December 2003, the IFC invested US$15 million in Olam and during 2004, a partial guarantee of a further $US50 million was also approved.(2) As of Fiscal Year 2006, the IFC held US$11.2 million in Olam loans and guarantees.(3) Despite this, the World Bank denies any IFC involvement in the DRC forest sector, stating on its website that "the Bank does not fund logging anywhere in Africa and our main advice to the Government of DRC is not to expand industrial logging". (4)

Forest campaigner Sarah Shoraka said, "This is an example of the World Bank's appalling double standards. While the left hand of the Bank claims to be saving the Congo rainforest, its right hand is helping finance its destruction. Rather than financing the plunder of the world's second largest rainforest, the World Bank should invest in strengthening forest law enforcement in the DRC, to control the wanton and illegal destruction being perpetrated by logging companies."

HSBC and Royal Bank of Scotland are two of Olam's principle bankers.(5) HSBC's forest sector guidelines prohibit it from providing financial assistance for commercial logging operations in "primary tropical moist forest" or in "violation of local or national laws in respect of illegal logging". The company claims to only support customers in this sector that are operating forests moving towards certification by the Forest Stewardship Council (FSC).(6) RBS does not even have a policy in regard to this.

Shoraka continued: "HSBC and RBS should stop facilitating the carve up of the Congo by cutting all links with Olam immediately."

Olam's operations have already faced legal issues elsewhere in Africa, and in 2004 it was fined $20,000 by the US Commodity Futures Trading Commission for illegal practices in the US market.(7)

The Congo forest is the world's second largest rainforest after the Amazon. In the DRC alone, an estimated 40 million people depend on the forests for their livelihoods. Greenpeace is calling for the cancellation of all logging titles issued since May 2002 and for the moratorium on new logging titles to be extended and enforced until the sector is under control and a land-use plan that includes the participation of local communities is fully in place.

Contact: Greenpeace Press Office on 0207 865 8115

NOTES TO EDITOR

1. The Greenpeace report 'Carving Up The Congo' can be downloaded at http://www.greenpeace.org.uk/media/reports/carving-up-the-congo

2. IFC Summary of Project Information, project numbers 20929 and 22659

3. IFC, letter to Greenpeace, July 31, 2007

4. World Bank website

5. http://www.listedcompany.com/ir/Olam/misc/Olam_ar2006.pdf (page 69)

6. HSBC Forest Land and Forest Products Sector Guidelines (pdf)

7. Commodity Futures Trading Commission, Release 4914-04 (CFTC Docket No. 04-13)