25-04-04 The World Bank is considering pulling its funding of all oil, gas and coal projects by 2008. The move, recommended in a recent World Bank report, would send a clear signal that global financial institutions are serious about tackling climate change.
James Wolfensohn, the bank's president, said that a decision on the measure would be made in June. Although the bank lends just $ 600 mm to extraction projects, its involvement acts as a seal of approval to other banks and funding institutions.

The proposal has split World Bank staff, many of whom believe its involvement in oil, gas and coal projects ensures revenue from lucrative oil schemes is spent wisely by poor countries. Some say that fossil fuel is far cheaper than the alternatives and it is unfair to expect poor countries to look for finance elsewhere.
The measure forms a core part of the World Bank Extractive Industries Review written by Dr Emil Salim, former Indonesian environment minister. It has been welcomed by campaign groups but opposed by the mining industry and oil-rich developing nations.

Another recommendation is that the bank should refuse to fund extraction projects in protected areas.
This, if adopted, could prevent George Bush drilling for oil in Alaska.

Source: The Observer