Civil society organizations have expressed concern over what they say is a lack of transparency in the social and environmental safeguards used by the New Development Bank, a multilateral finance institution founded by Brazil, Russia, India, China and South Africa (or popularly known as the BRICS).
The NDB has promised to focus on renewable energy projects and approved its first batch of loans last week. The bank will invest $800 million in renewable energy projects, with India and Brazil receiving $250 million and $300 million, respectively. These inaugural projects, approved during meetings in Washington, D.C., are expected to reduce harmful emissions in the bank's member countries by 4 million tons annually.
Despite its environmental mandate, however, critics say that the bank’s loans could harm local communities and ecosystems if the proper safeguards are not put into place. Existing multilateral banks conduct evaluations to assess the possible impact of proposed projects before a loan is approved. In the case of NDB, many CSOs say they and others don’t understand — and haven’t been consulted about — this process.
About the author
Lean Alfred Santos@DevexLeanAS
Lean Alfred Santos is a former Devex development reporter focusing on the development community in Asia-Pacific, including major players such as the Asian Development Bank and the Asian Infrastructure Investment Bank. He previously covered Philippine and international business and economic news, sports and politics.
