In the new report "World Bank: Climate Profiteer", the Institute for Policy Studies accuses the World Bank of playing both side of the climate crisis.

The scientific community has repeatedly warned that drastic reduction in the use of oil, gas, and coal is a must to avoid the catastrophic effects of climate change.

The bank claims it is an "honest broker" of carbon deals, but the study's authors say their findings do not validate that assertion.

"With little transparency around its credits and no formal accounting for its carbon debits that are accruing thanks to the World Bank loans," said Redman, "it is hard to say."

The study's findings show that out of its two-billion-dollar carbon finance portfolio, the bank has directed nearly 80 percent to projects involving the coal, chemical, iron, and steel industries.

By contrast, critics say, it has not invested any significant amount of money in projects aiming to sustainably reduce poverty. Currently, the bank's Community Development Carbon Fund (CDCF) and the Biocarbon Fund have a total capital of 219 million dollars, which constitutes only 10 percent of the total carbon-related funding at its disposal.

"The bank finances a fossil fuel project in Poor Country A. Rich Country B asks the bank to help arrange carbon credits so Country B can tell its carbon counters it's taking serious action on climate change," said Dephane Wysham, who worked with Redman on the report.

"It kindly obliges, offering credits for a price far lower than Country B would have to pay if Country B made those cuts at home," Wysham explained. "Country A gets a share of the cash to invest in equipment to make the fossil fuel project slightly more efficient."

"The bank takes its 13 percent cut, and everyone is happy," she said.

Greenwashing... taking advantage of poor and developing nations... encourgaging the ongoing use of dirty energy sources... nice job World Bank: you're evil.

» IPS News