Melting ice caps, fossil fuels, poverty and injustice: joining the dots

Oil refinery near Hurricane Katrina-ravaged areas of Louisiana's Gulf Coast.

Photo: T. Abraham/CWS

June 5, 2007

World Environment Day (WED), celebrated June 5, looks at the effects of climate change on polar ecosystems and communities, and the ensuing consequences around the world. Though the focus is on the polar regions this year, the impacts of climate change already recorded underscore the need to reduce the use of fossil fuels and look for alternative energy sources.

In his message regarding world environment day, UN Secretary General Ban Ki-moon points out that while the evidence of climate change is most dramatic in the around the poles, the melting of polar ice caps is impacting all regions of the world.

As sea levels rise, people in coastal cities and islands worldwide face the threat of flooding. As glaciers retreat, water supplies are threatened. People in dry lands, especially in Africa, are experiencing changing weather patterns linked to climate change which threaten to intensify desertification, drought and food insecurity.

Church World Service aids and rehabilitates people who are hit by weather-related disasters. CWS also works on a policy level to eradicate the root causes of suffering and injustice. CWS is beginning to work with other development and environmental organizations to examine the policies that foster and perpetuate climate change.

A major issue that needs to be addressed is the world's dependence on fossil fuels. With increased political will, developed countries can do more to reduce greenhouse gas emissions and encourage energy efficiency both at home and overseas through technology and policy options.

Recent studies show that developing countries rich in oil are deep in debt and “cursed” with poverty, malnutrition, child illiteracy, corruption, authoritarianism, civil war. Indebtedness continues even when their oil industries are developed.

The World Bank is playing a role in entrenching the Resource Curse. The World Bank Extractive Industries Review (EIR) in 2003 revealed that World Bank support for extractive industry projects did not contribute to poverty alleviation. EIR recommends that the Bank phase out its support for coal immediately, and for oil within five years. In spite of these findings the Bank continues to support oil projects that have negative impact on development and contribute to climate change.

Financial institutions including the World Bank, the Overseas Private Investment Corporation (OPIC) and the Export-Import Bank (Ex-Im) pour billions of dollars into the oil sector annually. This “oil aid” subsidizes an already-profitable industry, including large oil companies that have recently reported record profits.

Rep. Maurice Hinchey (D-NY), recently introduced the End Oil Aid Act, a bill that would limit U.S.-funded international financial institutions and export development agencies from subsidizing the oil and gas industry's overseas operations.

“Each year,” Hinchey attests, “billions and billions of dollars that should be spent on ending poverty around the world and improving the environment are being used to subsidize oil and gas projects in developing countries that lead to debt traps for those countries and an increase in greenhouse gas production. It is unfathomable that the U.S. and other wealthy countries would spend billions of dollars on subsidies for Big Oil when those energy companies are reaping record profits while billions of people around the world are living on less than $2 a day. There is no justice in that. Instead of alleviating poverty, most oil and gas projects have exacerbated corruption, worsened economic inequality, increased local conflict, and intensified global climate change.”

Through the Act (H.R. 1886), Rep Hinchey seeks to build political will to not only limit investments in the oil industry, but to actively promote alternative energy.

As people around the globe observe and celebrate World Environment Day, Church World Service remains committed to getting at the root causes of suffering and poverty. CWS will continue to work with Oil Change International, USA Network and others in promoting the End Oil Aid Act by seeking additional congressional co-sponsors for the bill.