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World Bank Leads Development Giants in Investing $2.27 Billion in Factory Farms
"We're calling on World Bank President Ajay Banja to phase out these investments, which are undermining his climate agenda," said one researcher.
Oct 21, 2024
The Green Climate Fund and 11 of the 15 multilateral development banks together invested at least $2.27 billion in factory farming in 2023, undercutting their stated climate goals, according to a report published Monday by the Stop Financing Factory Farming coalition.
The report, launched the same day as the start of the International Monetary Fund and the World Bank's annual meetings in Washington, D.C., found that the World Bank was the worst offender. The bank—principally through its private-sector lending arm the International Finance Corporation (IFC)—put nearly $750 million toward industrial agricultural projects, five times more than any of the other banks.
"Factory farming is a leading driver of greenhouse gas emissions, deforestation, biodiversity loss, animal cruelty, and water pollution," Merel van der Mark, head of Animal Welfare and Finance at Sinergia Animal, said in a statement. "Development banks have all pledged to align their investments with the Paris climate agreement, yet are failing to make the kinds of investments needed to keep the goal to limit global temperature rises to 1.5°C within reach."
"There are examples of better practices out there."
The report was based on 2023 disclosure information scraped from project webpages by the Early Warning System. It found that the Green Climate Fund and 11 of the 15 multilateral development banks had invested a total of $3.3 billion in animal agriculture generally, funding 62 projects. The banks also mobilized another $3.4 billion for the sector from other sources including banks and governments. The World Bank Group also led the pack in animal agriculture financing overall at over $1.5 billion.
Factory farming—or industrial agriculture—received most of that money, representing 68.3% of investments and 76.7% of supported projects. Only 2.3% of investments and 6.7% of projects involved non-industrial farming that might potentially be sustainable.
The report's authors said their research "reveals a concerning trend toward support for the industrialization of animal agriculture." This can occur through more monocropping of plants like soy or corn for animal feed; more warehousing of large numbers of animals in concentrated feed operations that release large amounts of climate-, land-, and water-polluting waste; and the construction of slaughterhouses.
The World Bank's investments in factory farming go against its own research. The bank released a report in May finding that the agrifood system generates a third of total greenhouse gas emissions, and that animal production and consumption make up almost 60% of those emissions. It even stopped serving meat in its staff cafe.
"The World Bank has set out an ambitious road map to drastically cut agricultural emissions while feeding the world. However, this good work is being undermined by its private sector arm, the International Finance Corporation," said International Accountability Project researcher Alessandro Ramazzotti. "Last year IFC invested $501 million in factory farming including a $47 million loan to a Chinese company for a multi-story pig farm, making it the largest investor of all the development banks. We're calling on World Bank President Ajay Banja to phase out these investments, which are undermining his climate agenda."
In addition, the groups behind the Stop Financing Factory Farming coalition—which is headed by Bank Information Center, Friends of the Earth U.S., Global Forest Coalition, International Accountability Project, Sinergia Animal, and World Animal Protection—call on all development banks to move their money from industrial agriculture to regenerative agriculture that boosts biodiversity, helps the environment, and strengthens local communities, following the model of the five banks in the report that did not invest in factory farms in 2023.
"There are examples of better practices out there," said Ladd Connell, environment director at Bank Information Center. "The Green Climate Fund supports some low-carbon projects, such as providing financial and technical support to smallholder women farmers in Cote D'Ivoire to help them adapt to climate change. Where banks invest in new livestock projects, they should be innovative and sustainable, following agroecological principles."
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Multilateral Banks Must Stop Funding the Factory Farms Fueling the Biodiversity Crisis
Animal livestock is the leading driver of biodiversity loss. At the U.N. biodiversity summit next week, leaders must agree to shift finance towards more sustainable forms of food production.
Oct 18, 2024
Correction: An earlier version of this article said that pig farms in Ecuador's Santo Domingo de los Tsáchilas region generated roughly 15 million pounds a day. It has been corrected to reflect the fact that 4.4 million pounds of waste are generated per day.
Our natural world is in crisis. An area the size of Portugal is deforested every year on average, and wildlife populations have declined by an average of 73% since 1970. Deforestation is a leading driver of the climate crisis, and wildlife loss can destabilize precious ecosystems.
To tackle this, two years ago governments agreed on the Global Biodiversity Framework (GBF), a set of goals and targets to protect nature. On October 21, leaders will meet at the United Nations biodiversity COP16 summit in Colombia to formally review their progress for the first time.
The industrial animal livestock sector is by far the largest driver of biodiversity loss, and must be where attendees at COP16 focus their attention.
“There is no nature anymore. Pollution in the air, pollution in the river.”
In the last 50 years, global milk production has more than doubled and meat production has more than tripled. This increase has been achieved through industrialisation—by putting more and more animals in smaller spaces, in worse conditions, feeding them more supplements and medicines, and using resources more intensely. It has led to poor animal welfare, low quality of food, and health risks for humans and other animals, including antibiotic resistance.
It has also led to hugely negative impacts on the environment, including for wild animals and their habitats. Livestock farming is the leading driver of deforestation—with clearing of forests for land for cattle accounting for 42% of all deforestation. The production of farmed animals and the feed for them now occupies 80% of the world’s agricultural land, yet provides just 17% of humans’ global calorie supply.
As a result of these factors, today 70% of all birds on Earth are farmed poultry, and 93% of all non-human mammals are livestock with just 7% wild. Overhauling the way we produce food is vital to protect our natural environment and to stem species loss.
Multilateral development banks (MDBs)—such as the World Bank Group—have made a series of commitments to protect nature, yet despite this the five biggest MDBs invested over $4.6 billion in factory farming between 2011 and 2021, and have shown no signs of reducing their spending since.
At the U.N. climate conference COP26 in 2021, leading MDBs released a Joint Nature Statement promising to support governments and the private sector to tackle nature loss. And at COP28 last year they went a step further, including committing to “tackl[e] the drivers of nature loss by fostering ‘nature positive’ investments” and “valu[e] nature to guide decision-making.”
In addition, Target 14 of the Global Biodiversity Framework agreed by world leaders requires public and private financial flows to be aligned with the goals of the GBF. This means MDBs must ensure their investments align with other GBF targets, like Target 4 to halt species extinction, and Target 10 to enhance biodiversity and sustainability in agriculture.
But rather than investing in sustainable forms of food production, MDBs are propping up a broken model of factory farming that is totally at odds with these pledges.
For example, the private sector branches of the World Bank Group and the Inter-American Development Bank Group have together invested over $200 million into PRONACA, Ecuador's largest pork and poultry producer. PRONACA used the funds to build and expand a series of factory farms, including in Santo Domingo de los Tsáchilas, an area of Ecuador home to Indigenous peoples and tropical forest.
According to a shocking report by the Ecuadorian Coordinator of Organizations for the Defense of Nature and the Environment (CEDENMA), PRONACA's pig farms in the area generate roughly 4.4 million pounds of toxic waste each day, fouling the soil, air, and waterways.
CEDENMA surveyed local communities about the impact of the factory farms. Interviewees told them that PRONACA contaminated rivers, killing off fish that local people rely on for food and jobs, and harming local tourism. One intensive pig breeding farm was set up just meters away from a sacred site.
“There is no nature anymore. Pollution in the air, pollution in the river,” said one local resident.
Investments like in PRONACA are unfortunately just one of hundreds of harmful factory farm investments made by MDBs. Similar investments have been made or are being planned in Bangladesh, Nigeria, Poland, and elsewhere all over the world.
Ahead of COP16, we and other members of the Stop Financing Farming coalition are calling on MDBs to stick to the commitments they’ve made to protect nature by ruling out any further finance for factory farming and instead supporting more nature-friendly forms of agriculture. This means investing in the production of more plant-rich foods, and when they do finance animal agriculture, ensuring it is sustainable, following the principles of agroecology.
Shifting finance in this way would not only help protect nature, but also promote nutritionally superior diets, create jobs, and tackle climate change.
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Progressive International Applauds Kenyans for Rising Up to Defeat IMF Austerity Bill
"They refuse to become another laboratory for neoliberalism—impoverished, beaten, or killed for the benefit of foreign corporations and their lackeys in the Kenyan government."
Jun 27, 2024
Progressive International on Thursday applauded the people of Kenya for taking to the streets en masse to defeat an International Monetary Fund-backed legislative package that would have hiked taxes on ordinary citizens as part of an effort to repay the government's powerful creditors.
"Pushed through at the behest of the International Monetary Fund, the World Bank, and the U.S. State Department, the bill would impose severe austerity measures and crippling taxes on Kenya's working people, who are already strained by Kenya's legacy of colonial underdevelopment," Progressive International said in a statement.
"The Progressive International stands firmly with the people of Kenya," the organization added. "They refuse to become another laboratory for neoliberalism—impoverished, beaten, or killed for the benefit of foreign corporations and their lackeys in the Kenyan government."
The Kenyan government's proposal, welcomed by the IMF as necessary for "debt sustainability," triggered massive youth-led protests in the nation's capital last week as thousands of citizens already immiserated by sky-high living costs flooded the streets to express outrage at the U.N. financial institution and their government for fueling the crisis.
The government crackdown was swift and deadly, with police using tear gas and live ammunition to beat back demonstrators calling for the withdrawal of the proposed bill and the resignation of President William Ruto, who took office in 2022.
Protesters achieved one of their objectives Wednesday when Ruto announced he would not sign the tax legislation, just days after he
ordered the country's military to help suppress the demonstrations.
"Listening keenly to the people of Kenya who have said loudly that they want nothing to do with this finance bill, I concede, and therefore, I will not sign the 2024 finance bill, and it shall subsequently be withdrawn," Ruto said in an address to the nation, which spends more than a quarter of its revenue on debt interest payments.
"The protesters we have been speaking to are still very angry, still very frustrated, they hold the president responsible for the deaths of those young Kenyans across the country."
As The Associated Pressreported, the withdrawn measure would have "raised taxes and fees on a range of daily items and services, from egg imports to bank transfers."
Kenya's public debt currently stands at $80 billion, around $3.5 billion of which is owed to the IMF—an explicit target of protesters' ire.
"Kenya is not IMF's lab rat," declared one demonstrator's sign.
The IMF said in a brief statement Wednesday that it was "deeply concerned" about the "tragic events" in Kenya and claimed its "main goal in supporting Kenya is to help it overcome the difficult economic challenges it faces and improve its economic prospects and the wellbeing of its people."
“Kenya is not IMF’s lab rat”
“I was in my healing era” pic.twitter.com/xLt2GG51hf
— Larry Madowo (@LarryMadowo) June 20, 2024
As Bloomberg's David Herbling wrote over the weekend, Ruto "has spent his first two years in office ramming through a slew of unpopular taxes—on everything from gasoline to wheelchair tires, bread to sanitary pads—thrilling international investors and the IMF, which has long urged Kenya to double its revenue collections to address its heavy debt burden."
Ruto's withdrawal of the tax-hike bill appeared unlikely to fully quell mass discontent over the president's IMF-aligned economic policies as protests continued on Thursday.
"The protests today are not as big as they were two days ago but they are still no less intense where they are happening," Al Jazeera's Zein Basravi reported from Nairobi. "If President Ruto, protesters say, had signed off on killing the tax bill 72 hours ago, a week ago, these protests might not be happening. But the decision he made, the concession, has come too little too late, and it has not gone far enough, and it has come at the cost of too many young lives."
"The protesters we have been speaking to are still very angry, still very frustrated, they hold the president responsible for the deaths of those young Kenyans across the country, 23 killed," Basravi added. "And they hold Parliament responsible for not standing stronger, standing firmer, against the president as they feel he was overreaching his position."
U.S. Rep. Ilhan Omar (D-Minn.) said in a statement Wednesday that it is "crucial to recognize that the International Monetary Fund's austerity conditions have contributed to the economic hardships facing Kenyan citizens."
"These measures often disproportionately affect the most vulnerable populations and can exacerbate social unrest," continued Omar, who chairs the U.S.-Africa Policy Working Group. "It is imperative that protesters remain peaceful as they continue to demand change. I stand in solidarity with the people in the wake of both state violence and IMF-imposed austerity measures."
"The Kenyan government must immediately disclose the location and condition of all those who have been taken into custody or disappeared, cease the use of excessive force, respect the right to peacefully protest, and continue to engage in meaningful dialogue to address the legitimate concerns of its citizens," Omar said.
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