poverty, climate and energy: the case against oil aid

The document critiques 'oil aid'—public financing for fossil fuel infrastructure in the Global South—arguing it exacerbates the 'resource curse', benefits wealthy nations and corporations over the poor, and undermines climate action. It calls for a shift in public subsidies toward renewable energy to achieve a socially just energy transition.

• Public financing for fossil fuels in the Global South is often linked to lower economic growth, a phenomenon known as the 'resource curse'. Factors contributing to this include political corruption, financial mismanagement, and a decline in the competitiveness of other economic sectors.
• A significant portion of energy produced by World Bank Group-funded projects is exported to rich countries rather than benefiting the local poor. Furthermore, non-export projects often serve large industrial users, such as the Tata Mundra Ultra Mega coal project in Gujarat, India.
• Social and environmental safeguard policies of development banks are frequently criticized as vague and lacking enforcement. The document cites the Chad-Cameroon pipeline and the Camisea natural gas pipeline in Peru as examples of poorly managed projects despite public funding.
• Despite a 2004 Extractive Industries Review recommending that the World Bank Group phase out oil production investments by 2008 and end coal financing, the Bank's management rejected these suggestions, maintaining that such projects are essential for poor nations.
• Between 2001 and the time of publication, International Financial Institutions provided over $61 billion in loans, grants, and guarantees to the oil and gas industry. The World Bank Group is the largest multilateral funder, contributing approximately $2 billion annually.
• The authors advocate for redirecting public subsidies toward renewable energy, such as solar thermal energy, to catalyze a transition to climate-friendly and socially just solutions.

APA

Bruil, J., Bruno, K., & Setton, D. (2008). poverty, climate and energy: the case against oil aid. Friends of the Earth International. https://www.foei.org/wp-content/uploads/2020/12/poverty-climate-energy-FINAL-for-email-21.pdf

Chicago

Bruil, Janneke, Kenny Bruno, and Daniela Setton. poverty, climate and energy: the case against oil aid. Friends of the Earth International, 2008. https://www.foei.org/wp-content/uploads/2020/12/poverty-climate-energy-FINAL-for-email-21.pdf.

Wikipedia

{{cite report |last1=Bruil |first1=Janneke |last2=Bruno |first2=Kenny |last3=Setton |first3=Daniela |title=poverty, climate and energy: the case against oil aid |publisher=Friends of the Earth International |date=June 2008 |url=https://www.foei.org/wp-content/uploads/2020/12/poverty-climate-energy-FINAL-for-email-21.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bruil2008poverty, author = {Bruil, Janneke and Bruno, Kenny and Setton, Daniela}, title = {{poverty, climate and energy: the case against oil aid}}, institution = {Friends of the Earth International}, year = {2008}, month = jun, url = {https://www.foei.org/wp-content/uploads/2020/12/poverty-climate-energy-FINAL-for-email-21.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }