Japan to limit financing of overseas coal power plants

Yahoo – AFP, Natsuko FUKUE, July 9, 2020

Protesters wearing masks of world leaders including Japanese Prime Minister
Shinzo Abe demonstrated against climate change and coal during the G20 summit in
Osaka in June 2019 (AFP Photo/Pak YIU)

Japan said Thursday it would tighten rules for investment in foreign coal-fired power stations on environmental grounds, but stopped short of ending government funding for projects.

The move comes with the world's third-largest economy under fire for financing projects to build coal plants at home and abroad -- notably in Southeast Asia.

Economy, Trade and Industry Minister Hiroshi Kajiyama told reporters the government "has decided to tighten" the rules for supporting investment.

Countries seeking investment would be required to change their "behaviour" towards decarbonisation, Kajiyama said, but added that the new policy was not about cutting back funding.

"There are developing nations in the world that can only choose coal as an energy source," he said.

Further details were not immediately available.

The government currently provides funding to Japanese companies if their projects meet certain criteria -- such as when a foreign country has no options but to choose coal due to economic reasons.

Major decision

The Global Energy Monitor watchdog said last year that Japan accounted for over US$4.8 billion in financing for coal power plants abroad -- particularly in Indonesia, Vietnam and Bangladesh.

Kimiko Hirata, international director of the environmental NGO Kiko Network, said the new investment decision was a "major decision."

"The coal-fired power stations were the pillar of infrastructure exports for Japan," she told AFP.

But Greenpeace criticised the decision as falling short, saying it showed "no clear policy".

Last week, the government promised to study ways of phasing out older, more polluting coal-fired power stations by 2030, following reports it plans to mothball around 100 ageing plants.

Japan has some 140 coal-fired power stations, providing nearly one-third of the nation's total electricity generation, and second only to LNG-fired plants.

But there are more than a dozen projects underway to build more plants -- despite efforts to phase them out in many other parts of the world.

The appetite for coal-fired plants increased significantly after the Fukushima nuclear power plant accident following the 2011 tsunami.

Japan wants nearly a quarter of its energy needs to be met by renewable sources -- including wind and solar -- by 2030, a figure critics describe as unambitious based on current levels of around 17 percent.

Bitcoin fever hits US real estate market

Yahoo – AFP, Leila MACOR, January 14, 2018

View of a beach from a condo building in Florida, where bitcoin fever has hit
 the real estate market (AFP Photo/Jose ROMERO, RHONA WISE)

Miami (AFP) - Bitcoin fever has hit the US real estate market, especially that of Florida, offering foreign investors a way to dodge currency controls at home and US economic sanctions.

As of the end of last year, the digital currency was listed as a way to pay for some 75 properties for sale, especially in south Florida and California, according to the real estate firm Redfin.

"Bitcoin accepted" is a message now seen in the description of homes for sale in the Miami area.

One seller is going even farther, saying he will take only bitcoin (33 of them to be exact) for his half-million-dollar downtown condo in the Florida metropolis.

Bitcoin has been on a roller coaster ride of late, shooting up to nearly $20,000 a piece in mid-December and then dropping sharply around Christmas. It started the year at around $14,000.

Its use in real estate transactions is novel, and agents are wary because of its high volatility.

"I'd be blown away if a year from now we see hundreds of real estate transactions in bitcoins," said Jay Parker, Florida CEO for the Douglas Elliman brokerage agency.

Still, such transactions can be useful for foreigners who want to invest in the United States and cannot otherwise do so, said economist and bitcoin expert Charles Evans of Barry University.

"This seems to be driven by international investors who are circumventing inefficient banking and currency controls at home, and by US cryptocurrency enthusiasts," Evans told AFP.

"The governments in those countries restrict the amount of money that their residents are allowed to transfer abroad through the banking system. Bitcoin enables individuals there to bypass such restrictions," he added.

This could be a draw for investors, who even before the bitcoin rage were already hot on the real estate market in south Florida.

Nearly half of all foreign buyers of property in south Florida are from Latin America.

According to the National Association of Realtors, over the past five years, investors from Venezuela, Brazil and Argentina -- in that order -- have led purchases in this part of the state.

Money laundering?

Bitcoin offers another advantage for some foreign investors: it lets them dodge US economic sanctions.

Evans cited the example of Venezuela, which imposes strict currency controls and is enduring runaway inflation that surpassed 2,600 percent in 2017.

What is more, many senior officials in the government of Venezuela's President Nicolas Maduro have been hit by sanctions imposed by Washington, which considers his administration a dictatorship.

Evans said there is also a lot of interest in bitcoin among Iranians, whom he described as "doubly hit" with restrictions in Iran and international sanctions.

It is an open secret that money laundering fuels the real estate market in south Florida. But instead of hiding the practice, bitcoin could have the opposite effect.

The crypto currency "is a terrible medium for large-scale money laundering, because all bitcoin transactions are recorded in the publicly available transaction record known at the Blockchain," said Evans.

Although bitcoin has been associated with the drug trade and cyber attacks, Blockchain "leaves a lot of fingerprints," former Florida representative Jose Felix Diaz told Politico.

"So if you're using it for illegitimate reasons, the state and the federal government should have every tool at their disposal to go after you," Diaz said.

Last year, Diaz sponsored a bill-turned-law that includes bitcoin in Florida's laws for fighting money laundering.

Real estate agent Parker also said money laundering via bitcoin is far from posing a risk because "the beneficial owners of the real estate are always going to be able to be traced."

Parker said the fad of doing real estate deals in bitcoin could be as volatile as the currency itself.

"I think it's a gimmick. There's not much risk. The only risk is if the currency crashes before you can liquidate it," said Parker.

"I think the people that are using bitcoins to try to market their properties are doing it with the very purpose of getting you to write about it, getting their properties exposure," said Parker.

ING reaches deal to sell loan to controversial US pipeline project

DutchNews, March 22, 2017

ING has reached an agreement on the sale of its controversial loan to the Dakota Access pipeline in the US. 

The construction has prompted violent clashes between the army and the Standing Rock Sioux Tribe who say construction of the pipeline through northern Dakota could affect its drinking water supply and put communities ‘at risk of contamination by crude oil leaks and spills.’

‘The sale follows a constructive dialogue between ING and representatives from the Standing Rock Sioux Tribe and has the full support of the tribe,’ ING said in a statement. 

ING officials met tribal leaders on February 10, during which ING said it was ‘willing to either continue trying to positively influence the course of the project, or to distance ourselves by selling our stake in the loan,’ the statement said.

‘In response, the Standing Rock Sioux Tribe indicated it would appreciate ING selling its loan in the project, considering that there is less room for lenders to positively influence the project now that construction has resumed, and because it would be a valuable message supporting its call for respectful dialogue.’ 

Under the terms of the sale, which is expected to close shortly, ING will retain a potential risk in case of non-payment under the loan. 

ING was one of 17 banks backing the project to the tune of $2.5bn. ING’s share amounted to some $120m. 

ABN Amro

ABN Amro said in February it is prepared to stop financing one of the companies involved in building the pipeline if an acceptable solution to the problem is not found. 

ABN Amro it is not directly funding the project but has a ‘relationship’ with one of the major investors, Energy Transfer Equity. The bank that if a solution is not found ‘the ultimate consequence will be discontinuation of the relationship’. 

In the meantime, ABN Amro said it will not pursue any new business with ETE until ‘there is clarity regarding the situation and an acceptable outcome has been achieved’.

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BayernLB under pressure over Dakota pipeline investment

Bavaria's state bank is set to invest about $120 million in the Dakota Access Pipeline, which threatens a Native American reservation and drinking water. Other banks have already sold their stake.

Deutsche Welle, 6 February 2017

There aren't many members of the Sioux tribe living in Bavaria but, thanks to the tentacles of international finance, the protests against the Dakota Access Pipeline (DAPL) being built near the US's Standing Rock Indian Reservation have reached the state capital, Munich.

Last week, protesters from an alliance of NGOs arrived on the doorsteps of the BayernLB bank to deliver more than 700,000 signatures collected via worldwide petitions against the investments of 17 financial institutions into DAPL. These included more than 220,000 signatures specifically aimed at BayernLB's contribution that had been collected in a few days. By Monday 6, the online petition had reached close to 300,000 signatures.

Despite an invitation from the environmental campaigners Urgewald, Bavaria's state bank declined to send any representatives outside the building to receive the petition. "But we were allowed to go in with a delegation of three people, and we gave the petition to the press spokesman," said Regine Richter, banking specialist at Urgewald.

The bank itself is unwilling to give interviews on the subject and in response to DW's request would only send the public statement it issued in December, which made many conciliatory noises. "BayernLB is following the running discussions about the route of the pipeline very carefully and, as part of the consortium financing the pipeline, supports an amicable result of the discussions between the parties," it read.

Wait and see

BayernLB said it was waiting on a report from the US law firm Foley Hoag that was commissioned in December to look into how the local indigenous people had been consulted for the project. That report is due out later this month, but it may come too late. In January, US President Donald Trump signed an executive order decreeing that the environmental review for the project be fast-tracked.

"Nobody is really sure that means, but we are concerned that DAPL could get the green light any day now," Nick Pelosi, corporate engagement director for the campaign group First Peoples Worldwide, told DW. "It's such an urgent matter at this point that we really don't have time."

Not only that: The study is being conducted behind closed doors and may be no more than a desktop assessment. "From what we understand, it is a study on tribal consultation, which is the crux of this issue - that the tribe was not consulted properly about this pipeline," Pelosi said. "But nobody's reached out to the tribe, so it's essentially a study on consultation without any consultation."

The 17 banks insist that the loans for DAPL - amounting to $2.5 billion (2.3 billion euros) - are now legally committed. "But some have shown concern and that they are willing to exert the limited influence that they have," Pelosi said.

"I definitely think they're feeling the pressure," he said. "But what the tribe is asking is not necessarily for the banks to pull out, but to use their influence as project lenders to pressure the company into rerouting to avoid their treaty territory."

The banks say that influence appears to be very limited indeed: They argue that they can't impose new conditions on the loans and that it isn't their role to determine the route. "Which is true - it's the US government's responsibility - but we're asking them to support the reroute, not dictate it," Pelosi said.

Dozens of protesters have been arrested
at the Standing Rock reservation

Passive bank

Compared with other banks, BayernLB has been particularly recalcitrant. "BayernLB was one of the few that outright rejected our request for dialogue," said Pelosi.

"BayernLB is being much too passive," Richter said. "Banks like the Dutch ING and the Norwegian DNB are at least expressing public criticism of the pipeline consortium's behavior or are selling stakes in the companies involved."

Meanwhile in Germany, BayernLB's involvement in the project (a $120 million contribution to DAPL) has raised some political hackles - firstly because it is partly owned by the state, and secondly because it received a colossal taxpayer-funded 10 billion-euro ($9.3 billion) bailout during Europe's financial crisis in 2008.

"BayernLB should not be allowed to support the dirty business of climate denier Donald Trump," said Anton Hofreiter, the Greens' parliamentary leader and a native of Bavaria. "This project destroys the environment, is a risk for the drinking water from the Missouri River and, at the same time, desecrates the Native Americans' cultural heritage."

Hofreiter, along with other German politicians, is sure that BayernLB's commitment to the project could be reversed by Bavaria's state government. "I'm sure it's possible," Frank Schwabe, Bundestag member for the Social Democrats, told DW. "The bank has oversight committees, and there is political influence on that, so it would be good if the politicians in Bavaria would take a clear position on it. We're discussing the issue of company and bank responsibility more and more, and I think that a state bank in particular needs to stick to that."

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ING, ABN Amro under renewed pressure over Dakota pipeline

DutchNews, January 25, 2017    

Dutch banks ING and ABN Amro are under renewed pressure about their roles in a controversial pipeline in the US, now president Donald Trump has vowed to press ahead with the project, broadcaster NOS said on Wednesday. 

The construction has prompted violent clashes between the army and the Standing Rock Sioux Tribe who say construction of the pipeline through northern Dakota could affect its drinking water supply and put communities ‘at risk of contamination by crude oil leaks and spills.’

ING issued an updated statement on Thursday afternoon saying that it has publicly expressed its concerns about the project.

‘We have signed a contract, which is legally impossible to withdraw from,’ the bank said.  ‘What we can do is use our influence wherever possible to bring the process to a satisfactory outcome for all parties involved. 

The lenders to the pipeline have commissioned additional research to be conducted by an external independent human rights expert and will continue to monitor developments closely, ING said. 

In addition, the bank says it will meet members of the Standing Rock Sioux Tribe in mid February. 

Loans

According to fair banking campaign group Eerlijke Bankwijzer, ING has pumped the equivalent of €233m into the project in direct loans while ABN Amro has lent $45m to companies which are involved with the project. 

ABN Amro stressed earlier that it is not directly funding the project but has a ‘relationship’ with one of the major investors, Energy Transfer Equity.

‘In line with ABN Amro’s policy for sustainable banking, the bank continuously consults with Energy Transfer Equity on developments regarding the Dakota access pipeline, the bank said.

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ABN Amro warns its client ETE about Dakota pipeline solution - New
ING, ABN Amro urged to pull out of controversial US pipeline project

Greenpeace activists unfurl large "Resist" banner from construction crane blocks from White House to protest Trump https://t.co/PbEg0i5ulN pic.twitter.com/Hsu2Ik2lyY

— AFP news agency (@AFP) January 25, 2017

US authorities to re-route controversial North Dakota pipeline

Yahoo – AFP, Jim Watson, December 5, 2016

US military veterans joined protests against a controversial planned oil pipeline that
have led the Army Corps of Engineers to rethink the route (AFP Photo/JIM WATSON)

Cannon Ball (United States) (AFP) - The US Army Corps of Engineers nixed plans for a controversial oil pipeline crossing in North Dakota, a major victory for Native Americans and environmentalists who had staged months of protests.

The pipeline had been set to cross under the Missouri River and man-made Lake Oahe, which are drinking water sources for the Standing Rock Sioux Tribe.

"It's clear that there's more work to do," Jo-Ellen Darcy, the US Army's assistant secretary for civil works, said in a statement.

"The best way to complete that work responsibly and expeditiously is to explore alternate routes for the pipeline crossing."

The Standing Rock Sioux objected to building the 1,172-mile (1,886-kilometer) pipeline underneath the river and lake because of fears of possible leaks. The tribe also said the route would cross through areas with sacred historic artifacts.

The conflict between the tribe and pipeline operators Energy Transfer Partners and Sunoco Logistics Partners galvanized North American native tribes and supporters, who have camped in the thousands near the construction site for months in an effort to block it.

'Do the right thing'

Some 2,000 US military veterans joined the protest this week in a symbolically important move before a deadline for demonstrators to vacate the area on Monday.

"We wholeheartedly support the decision of the administration and commend with the utmost gratitude the courage it took on the part of President Obama, the Army Corps, the Department of Justice and the Department of the Interior to take steps to correct the course of history and to do the right thing," Standing Rock Sioux chairman Dave Archambault said in a statement.

"We are not opposed to energy independence, economic development, or national security concerns but we must ensure that these decisions are made with the considerations of our indigenous peoples."

Map charting the route of the controversial Dakota Access Pipeline

(AFP Photo/AFP)

Pipeline operator Energy Transfer Partners did not immediately respond to a request for comment.

However, a group representing the pipeline operators, the Midwest Alliance for Infrastructure Now, condemned the decision, blaming it on President Barack Obama.

"This purely political decision flies in the face of common sense and the rule of law," it said in a statement. "Unfortunately, it's not surprising that the president would, again, use executive fiat in an attempt to enhance his legacy among the extreme left."

Violent standoff

The Dakota Access Pipeline would snake through four US states, delivering oil from North Dakota to Illinois, where it can be shipped to other parts of the country.

It could help reduce the cost of transporting North Dakota oil, enabling it to better compete with cheaper oil from Canada.

The Standing Rock Sioux Tribe filed a lawsuit saying it was railroaded by the pipeline's developer and the US Army Corps of Engineers, responsible for approving construction under the river, but a federal judge denied its request to halt construction in September.

However, the government suspended the pipeline construction project last month, saying more analysis and debate were needed.

Energy Transfer Partners and its co-operator Sunoco Logistics Partners struck back, asking a court to stop regulators from further delaying the project.

The standoff turned violent at times, including last month, when hundreds of protesters clashed with police who fired tear gas, rubber bullets and a water cannon, soaking the crowd in subfreezing temperatures.

Protest organizers said 167 people were hurt, including three Native American tribal elders, and that seven people were hospitalized for severe head injuries.

Activists celebrate at Oceti Sakowin Camp on the edge of the Standing Rock

 Sioux Reservation outside Cannon Ball, North Dakota, after hearing that the Army

 Corps of Engineers has denied the current route for the Dakota Access pipeline

(AFP Photo/JIM WATSON)

Nationwide protests

The standoff has prompted sympathetic protests nationwide, with celebrities, politicians and environmental activists joining the cause.

News of the Army's decision prompted celebration and relief among those who opposed the pipeline route.

"Today, the voices of indigenous people were heard," Rhea Suh, president of the Natural Resources Defense Council, tweeted. "The Standing Rock Sioux & indigenous communities remind us of power of individuals to stand up to demand environmental justice."

Among the project's supporters, North Dakota's Republican Governor Jack Dalrymple, who had ordered the protesters to evacuate on Monday, called the decision a "serious mistake."

He was joined by the state's sole member in the House of Representatives, Kevin Cramer, who said in a statement, "I’m encouraged we will restore law and order next month when we get a president who will not thumb his nose at the rule of law."

But Vermont Senator and former presidential candidate Bernie Sanders praised Sunday's decision, saying, "I appreciate very much President Obama listening to the Native American people and millions of others who believe this pipeline should not be built."

Native Americans ride with raised fists to a sacred burial ground that was

disturbed by bulldozers building the Dakota Access Pipeline (DAPL)

September 4, 2016 near Cannon Ball, North Dakota (AFP Photo/Robyn Beck)

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Members of the Standing Rock Sioux Tribe confront bulldozers working on the

Dakota Access Pipeline in an effort to make them stop near Cannon Ball, North

Dakota on September 03, 2016 (AFP Photo/Robyn Beck)

Canada approves tripling capacity of Trans Mountain pipeline to Pacific pic.twitter.com/MF6eOdTBV1

— AFP news agency (@AFP) November 30, 2016

ING, ABN Amro urged to pull out of controversial US pipeline project

DutchNews, November 28, 2016

Amsterdam’s Zuidas business
district. Photo: DutchNews.nl

Dutch banks ING and ABN Amro are being urged to end their investment in a controversial oil pipeline project in the US. 

The construction has prompted violent clashes between the army and the Standing Rock Sioux Tribe who say construction of the pipeline through northern Dakota could affect its drinking water supply and put communities ‘at risk of contamination by crude oil leaks and spills.’ 

They also say the pipeline will threaten the environment and destroy Native American burial sites, prayer sites and culturally significant artifacts, CNN reported. 

According to fair banking campaign group Eerlijke Bankwijzer, ING has pumped the equivalent of €233m into the project in direct loans. ABN Amro has lent $45m to companies which are involved with the project. 

ING said in a statement it is concerned about what is going on and is investigating further. However, withdrawing from the project is not an option legally, news agency ANP quotes the bank as saying. 

ABN Amro points out it is not one of the 17 banks actively funding the pipeline and says it is in ‘continuous contact’ with the companies it has backed. This includes ‘explicitly’ ensuring that its concerns about the project are known, ANP said. 

Native Americans ride with raised fists to a sacred burial ground that was

disturbed by bulldozers building the Dakota Access Pipeline (DAPL),

September 4, 2016 near Cannon Ball, North Dakota (AFP Photo/Robyn Beck)

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US seeks halt to work on pipeline opposed by Native Americans

US judge won't halt pipeline opposed by Native Americans

Members of the Standing Rock Sioux Tribe confront bulldozers working on the

Dakota Access Pipeline in an effort to make them stop near Cannon Ball, North

Dakota on September 03, 2016 (AFP Photo/Robyn Beck)

Canada approves tripling capacity of Trans Mountain pipeline to Pacific pic.twitter.com/MF6eOdTBV1

— AFP news agency (@AFP) November 30, 2016