Cashing in on Tar Sands: RBS, UK banks and Canada's ... - Platform
Cashing in on Tar Sands: RBS, UK banks and Canada's ... - Platform
Cashing in on Tar Sands: RBS, UK banks and Canada's ... - Platform
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<str<strong>on</strong>g>Cash<str<strong>on</strong>g>in</str<strong>on</strong>g>g</str<strong>on</strong>g> <str<strong>on</strong>g>in</str<strong>on</strong>g> <strong>on</strong>TAR SANDS
<str<strong>on</strong>g>Cash<str<strong>on</strong>g>in</str<strong>on</strong>g>g</str<strong>on</strong>g> <str<strong>on</strong>g>in</str<strong>on</strong>g> <strong>on</strong> <strong>Tar</strong> <strong>S<strong>and</strong>s</strong>:<strong>RBS</strong>, <strong>UK</strong> <strong>banks</strong> <strong>and</strong> Canada’s “blood oil”C<strong>on</strong>tents5 Part 1 - Executive Summary11 Part 2 - The impact of tar s<strong>and</strong>s extracti<strong>on</strong>18 Testim<strong>on</strong>y 1 - Billy Joe Laboucan, Peace River Regi<strong>on</strong> – Trap l<str<strong>on</strong>g>in</str<strong>on</strong>g>es <strong>and</strong> tar s<strong>and</strong>s21 Part 3 - <strong>UK</strong> <strong>banks</strong> f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g Canadian tar s<strong>and</strong>s extracti<strong>on</strong>24 Testim<strong>on</strong>y 2 - Mike Mercredi, Fort Chipewyan - Do<str<strong>on</strong>g>in</str<strong>on</strong>g>g time <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s27 Part 4 - Case studies of tar s<strong>and</strong>s-related companies33 Testim<strong>on</strong>y 3 - Clayt<strong>on</strong> Thomas-Muller – <strong>Tar</strong> s<strong>and</strong>s <strong>and</strong> treaty rights37 Part 5 - The Royal Bank of Scotl<strong>and</strong>, public m<strong>on</strong>ey <strong>and</strong> tar s<strong>and</strong>s42 Campaign case study: Pensi<strong>on</strong> funds <strong>and</strong> shareholder revolts47 Part 6 - C<strong>on</strong>clusi<strong>on</strong>s <strong>and</strong> recommendati<strong>on</strong>s<strong>Tar</strong> s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> other parts of the world16 The Republic of C<strong>on</strong>go (C<strong>on</strong>go Brazzaville)32 Jordan45 Madagascar50 Appendix 1: Table of Figures53 Appendix 2: <strong>RBS</strong> <strong>and</strong> its history of fossil fuel f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance55 Appendix 3: Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples <strong>and</strong> Climate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples - The bank<str<strong>on</strong>g>in</str<strong>on</strong>g>g sector’s resp<strong>on</strong>se to climate change58 Endnotes4
executivesummary5
executivesummaryPetrol companies have been aware for a century of thevast quantities of oil rich bitumen ly<str<strong>on</strong>g>in</str<strong>on</strong>g>g beneath the borealforests of Alberta. But these ‘tar s<strong>and</strong>s’ 1 lay relativelyuntouched dur<str<strong>on</strong>g>in</str<strong>on</strong>g>g the sec<strong>on</strong>d half of the twentieth centurywhen oil was plentifully <strong>and</strong> readily available from moreaccessible sources. In those years, it was simply tooexpensive <strong>and</strong> uncompetitive to extract oil from the tars<strong>and</strong>s. However as the oil sources available to Westernoil majors became scarcer, the relative commercialattractiveness of tar s<strong>and</strong>s improved <strong>and</strong> significant<str<strong>on</strong>g>in</str<strong>on</strong>g>vestments <str<strong>on</strong>g>in</str<strong>on</strong>g> their extracti<strong>on</strong> began.Over the past decade there has been grow<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>aloppositi<strong>on</strong> to the development of the tar s<strong>and</strong>s of Alberta.These extracti<strong>on</strong> ventures – dubbed ‘the most destructiveproject <strong>on</strong> earth’ 2 – have become recognised as threaten<str<strong>on</strong>g>in</str<strong>on</strong>g>gto have a devastat<str<strong>on</strong>g>in</str<strong>on</strong>g>g impact <strong>on</strong> the global climate. Theunprecedented scale of the projects <strong>and</strong> the <str<strong>on</strong>g>in</str<strong>on</strong>g>tensity oftheir energy usage means that they c<strong>on</strong>stitute an <str<strong>on</strong>g>in</str<strong>on</strong>g>dustrialtipp<str<strong>on</strong>g>in</str<strong>on</strong>g>g po<str<strong>on</strong>g>in</str<strong>on</strong>g>t, a step change from <strong>on</strong>e form of hydrocarb<strong>on</strong>– c<strong>on</strong>venti<strong>on</strong>al oil – <str<strong>on</strong>g>in</str<strong>on</strong>g>to a far more carb<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>tense form –unc<strong>on</strong>venti<strong>on</strong>al oil. 3Canada is the <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>al oil <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry’s test site – if itbecomes acceptable to f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance the tar s<strong>and</strong>s of Alberta, thenthe global f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance sector will have normalised a disastrouslyhigh-carb<strong>on</strong> development path. It is for this reas<strong>on</strong> that theCanadian tar s<strong>and</strong>s have become a fr<strong>on</strong>tl<str<strong>on</strong>g>in</str<strong>on</strong>g>e <str<strong>on</strong>g>in</str<strong>on</strong>g> the struggle6
aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st the destructi<strong>on</strong> of the climate though the extracti<strong>on</strong>of hydrocarb<strong>on</strong>s.All new fossil fuel <str<strong>on</strong>g>in</str<strong>on</strong>g>frastructure is extremely capital<str<strong>on</strong>g>in</str<strong>on</strong>g>tensiveto c<strong>on</strong>struct <strong>and</strong> tar s<strong>and</strong>s are even more costlydue to the extra process<str<strong>on</strong>g>in</str<strong>on</strong>g>g required to produce the oil,the pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es to br<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> gas to heat the tar s<strong>and</strong>s <strong>and</strong>so <strong>on</strong>. Estimates from <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry analysts for the capital<str<strong>on</strong>g>in</str<strong>on</strong>g>vestment needed over the next 20 years to exp<strong>and</strong> tars<strong>and</strong>s producti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the Alberta regi<strong>on</strong> range from $120-220billi<strong>on</strong>. 4 Outside of North America, L<strong>on</strong>d<strong>on</strong> is home to thehighest c<strong>on</strong>centrati<strong>on</strong> of f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial <str<strong>on</strong>g>in</str<strong>on</strong>g>stituti<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>vest<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> tars<strong>and</strong>s extracti<strong>on</strong>. 5This report summarises some of the ma<str<strong>on</strong>g>in</str<strong>on</strong>g> problemswitnessed with tar s<strong>and</strong>s extracti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> Canada. It presentsevidence about the impacts of tar s<strong>and</strong>s extracti<strong>on</strong> <strong>on</strong> localpeoples’ health, l<strong>and</strong> rights <strong>and</strong> livelihoods, as well as <strong>on</strong>the envir<strong>on</strong>ment. It documents which <strong>UK</strong> <strong>banks</strong> are <str<strong>on</strong>g>in</str<strong>on</strong>g>volved<str<strong>on</strong>g>in</str<strong>on</strong>g> provid<str<strong>on</strong>g>in</str<strong>on</strong>g>g f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial back<str<strong>on</strong>g>in</str<strong>on</strong>g>g for tar s<strong>and</strong>s, how muchm<strong>on</strong>ey they are provid<str<strong>on</strong>g>in</str<strong>on</strong>g>g, <strong>and</strong> to which oil companies. Itf<str<strong>on</strong>g>in</str<strong>on</strong>g>ds that:• The three ma<str<strong>on</strong>g>in</str<strong>on</strong>g> high street <strong>banks</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the <strong>UK</strong>(Barclays, HSBC <strong>and</strong> the Royal Bank of Scotl<strong>and</strong>)are all <str<strong>on</strong>g>in</str<strong>on</strong>g>volved <str<strong>on</strong>g>in</str<strong>on</strong>g> provid<str<strong>on</strong>g>in</str<strong>on</strong>g>g significant sums ofproject or corporate f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance for oil extracti<strong>on</strong> fromCanadian tar s<strong>and</strong>s.• In the three year time frame exam<str<strong>on</strong>g>in</str<strong>on</strong>g>ed between2007-2009, the Royal Bank of Scotl<strong>and</strong> (<strong>RBS</strong>) hasled underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g for the largest amount <str<strong>on</strong>g>in</str<strong>on</strong>g> loans tocompanies operat<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> Canada, to atotal of more than $7.5 billi<strong>on</strong>.• S<str<strong>on</strong>g>in</str<strong>on</strong>g>ce the <str<strong>on</strong>g>in</str<strong>on</strong>g>itial recapitalisati<strong>on</strong> of <strong>UK</strong> <strong>banks</strong> tookplace <str<strong>on</strong>g>in</str<strong>on</strong>g> October 2008, <strong>RBS</strong> has underwrittencorporate debt <strong>and</strong> equity worth nearly $2.5 billi<strong>on</strong>with tar s<strong>and</strong>s related companies.• In the same period Barclays Bank has led the mostcorporate debt <strong>and</strong> equity to tar s<strong>and</strong>s-relatedcompanies, more than $14 billi<strong>on</strong>.Out of the many tar s<strong>and</strong>s related companies that havereceived f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance from these <strong>banks</strong>, three are exam<str<strong>on</strong>g>in</str<strong>on</strong>g>edas case studies to give a snapshot as to the nature of thecompanies, how they c<strong>on</strong>duct their bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess <str<strong>on</strong>g>in</str<strong>on</strong>g> obta<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g tars<strong>and</strong>s <strong>and</strong> the public c<strong>on</strong>troversies they have been <str<strong>on</strong>g>in</str<strong>on</strong>g>volved<str<strong>on</strong>g>in</str<strong>on</strong>g>.The particular role of <strong>RBS</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g tar s<strong>and</strong>s is furtherexam<str<strong>on</strong>g>in</str<strong>on</strong>g>ed <str<strong>on</strong>g>in</str<strong>on</strong>g> the c<strong>on</strong>text of its well known positi<strong>on</strong> as the <strong>UK</strong>bank most heavily associated with f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g all fossil fuelsectors, <strong>and</strong> that with 84% of <strong>RBS</strong> now owned by the <strong>UK</strong>taxpayer there is an extra dimensi<strong>on</strong> of public accountability<str<strong>on</strong>g>in</str<strong>on</strong>g> how the bank <str<strong>on</strong>g>in</str<strong>on</strong>g>vests.All of the major <strong>banks</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the <strong>UK</strong> have resp<strong>on</strong>ded to public7
c<strong>on</strong>cern about climate change to some extent, throughpublic statements or through the <str<strong>on</strong>g>in</str<strong>on</strong>g>volvement <str<strong>on</strong>g>in</str<strong>on</strong>g> varioussets of voluntary pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples. An exam<str<strong>on</strong>g>in</str<strong>on</strong>g>ati<strong>on</strong> of several ofthese <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry-led efforts like the Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples, showsthat the reality of the <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment decisi<strong>on</strong>s st<strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> starkc<strong>on</strong>trast to the rhetoric of the various <str<strong>on</strong>g>in</str<strong>on</strong>g>itiatives.While tar s<strong>and</strong>s extracti<strong>on</strong> has become syn<strong>on</strong>ymouswith Canada <str<strong>on</strong>g>in</str<strong>on</strong>g> the m<str<strong>on</strong>g>in</str<strong>on</strong>g>ds of most people, geologists <strong>and</strong>eng<str<strong>on</strong>g>in</str<strong>on</strong>g>eers have been able to identify <strong>and</strong> evaluate majordeposits of ‘unc<strong>on</strong>venti<strong>on</strong>al’ oil <str<strong>on</strong>g>in</str<strong>on</strong>g> many other parts ofthe world. Although many of these deposits have beenpreviously identified, the cost of extract<str<strong>on</strong>g>in</str<strong>on</strong>g>g them has beenc<strong>on</strong>sidered prohibitive. But as <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment <str<strong>on</strong>g>in</str<strong>on</strong>g> technology <str<strong>on</strong>g>in</str<strong>on</strong>g>Alberta br<str<strong>on</strong>g>in</str<strong>on</strong>g>gs down the price of produc<str<strong>on</strong>g>in</str<strong>on</strong>g>g synthetic crude<strong>and</strong> as oil prices fluctuate <str<strong>on</strong>g>in</str<strong>on</strong>g> higher ranges, companies arere-assess<str<strong>on</strong>g>in</str<strong>on</strong>g>g the potential of operati<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> other countries.If extracti<strong>on</strong> can be undertaken <strong>on</strong> the scale envisaged <str<strong>on</strong>g>in</str<strong>on</strong>g>Alberta then it opens the floodgates for ‘unc<strong>on</strong>venti<strong>on</strong>al’oil extracti<strong>on</strong> around the world. Throughout the report,three of these countries – Jordan, the Republic of C<strong>on</strong>go <strong>and</strong>Madagascar – are exam<str<strong>on</strong>g>in</str<strong>on</strong>g>ed <str<strong>on</strong>g>in</str<strong>on</strong>g> greater detail.<strong>Tar</strong> s<strong>and</strong>s developments <str<strong>on</strong>g>in</str<strong>on</strong>g> Canada have resulted <str<strong>on</strong>g>in</str<strong>on</strong>g> veryserious c<strong>on</strong>sequences for the local ecosystems <strong>and</strong>communities, despite the fact that Canada is a county thathas a regulatory framework that is relatively robust withregards to human rights <strong>and</strong> the envir<strong>on</strong>ment. There is realc<strong>on</strong>cern that extracti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> many of those countries thatare not as regulated as Canada could result <str<strong>on</strong>g>in</str<strong>on</strong>g> even worseimpacts.Indigenous communities <str<strong>on</strong>g>in</str<strong>on</strong>g> Alberta have been the most heavilyimpacted by the tar s<strong>and</strong>s boom. Three people from some ofthose communities have written first-h<strong>and</strong> accounts of howthey have seen the projects develop <strong>and</strong> how their communitieshave been affected, <strong>and</strong> these testim<strong>on</strong>ies have been <str<strong>on</strong>g>in</str<strong>on</strong>g>cludedthroughout the report. In additi<strong>on</strong>, an account has been<str<strong>on</strong>g>in</str<strong>on</strong>g>cluded of a <strong>UK</strong>-based campaign to support shareholderresoluti<strong>on</strong>s that have been tabled for the upcom<str<strong>on</strong>g>in</str<strong>on</strong>g>g BP <strong>and</strong>Shell Annual General Meet<str<strong>on</strong>g>in</str<strong>on</strong>g>gs, rais<str<strong>on</strong>g>in</str<strong>on</strong>g>g c<strong>on</strong>cerns about the<str<strong>on</strong>g>in</str<strong>on</strong>g>volvement of the companies <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s.F<str<strong>on</strong>g>in</str<strong>on</strong>g>ally, the report makes a number of recommendati<strong>on</strong>sto <strong>UK</strong> <strong>banks</strong>, the <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>al <strong>banks</strong> that are signatoriesto the Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples <strong>and</strong> to the <strong>UK</strong> Treasury, the<str<strong>on</strong>g>in</str<strong>on</strong>g>stituti<strong>on</strong> that has the power to provide strategic directi<strong>on</strong>to <strong>RBS</strong> through its majority sharehold<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the bank. Theserecommendati<strong>on</strong>s are:To the <strong>UK</strong> bank<str<strong>on</strong>g>in</str<strong>on</strong>g>g sector• Create a moratorium <strong>on</strong> provid<str<strong>on</strong>g>in</str<strong>on</strong>g>g f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance of anyk<str<strong>on</strong>g>in</str<strong>on</strong>g>d to companies that are actively engaged<str<strong>on</strong>g>in</str<strong>on</strong>g> extract<str<strong>on</strong>g>in</str<strong>on</strong>g>g tar s<strong>and</strong>s or any other forms of‘unc<strong>on</strong>venti<strong>on</strong>al’ oil.8
• Develop revised <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment m<strong>and</strong>ates draw<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong>expertise <strong>and</strong> guidance from <str<strong>on</strong>g>in</str<strong>on</strong>g>dependent sources<strong>and</strong> best practices <str<strong>on</strong>g>in</str<strong>on</strong>g> the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial sector to identifywhich activities, such as tar s<strong>and</strong>s extracti<strong>on</strong>,should not be funded <str<strong>on</strong>g>in</str<strong>on</strong>g> future.• Make Free, Prior <strong>and</strong> Informed C<strong>on</strong>sent ofIndigenous <strong>and</strong>/or local communities a c<strong>on</strong>diti<strong>on</strong> ofall forms of project f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance.To the <strong>UK</strong> Treasury, the Chancellor of the Exchequer,Treasury Select Committee <strong>and</strong> M<str<strong>on</strong>g>in</str<strong>on</strong>g>ister for Bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess,Innovati<strong>on</strong> <strong>and</strong> Skills• Use the majority public ownership of <strong>RBS</strong> toimmediately impose lend<str<strong>on</strong>g>in</str<strong>on</strong>g>g st<strong>and</strong>ards <strong>on</strong> the bankto prevent the f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g of companies that:o are engag<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the extracti<strong>on</strong> of tar s<strong>and</strong>s orother forms of ‘unc<strong>on</strong>venti<strong>on</strong>al’ oil explorati<strong>on</strong>,odevelopment or transport; <strong>and</strong>do not ask for the Free, Prior <strong>and</strong> InformedC<strong>on</strong>sent of Indigenous <strong>and</strong>/or localcommunities.• Include enhanced st<strong>and</strong>ards for envir<strong>on</strong>mental<strong>and</strong> human rights protecti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the currentparliamentary discussi<strong>on</strong> of the re-regulati<strong>on</strong> of thebank<str<strong>on</strong>g>in</str<strong>on</strong>g>g sector <str<strong>on</strong>g>in</str<strong>on</strong>g> the wake of the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial crisis.• Provide <str<strong>on</strong>g>in</str<strong>on</strong>g>centives for l<strong>on</strong>g-term, susta<str<strong>on</strong>g>in</str<strong>on</strong>g>ablebehaviour by l<str<strong>on</strong>g>in</str<strong>on</strong>g>k<str<strong>on</strong>g>in</str<strong>on</strong>g>g executive pay to thecompanies’ l<strong>on</strong>g-term performance <strong>and</strong> to thebank’s envir<strong>on</strong>mental <strong>and</strong> social performance.To <strong>banks</strong> that are signatories to the Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples• Include <str<strong>on</strong>g>in</str<strong>on</strong>g> the Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples the climate impact ofproposed projects as an <str<strong>on</strong>g>in</str<strong>on</strong>g>tegral part of all riskassessments. Commit to a process of c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>uouslytighten<str<strong>on</strong>g>in</str<strong>on</strong>g>g the c<strong>on</strong>diti<strong>on</strong>s for f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g under thePr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples, if required, to meet the challenges posedby an unfold<str<strong>on</strong>g>in</str<strong>on</strong>g>g climate crisis.• Include additi<strong>on</strong>al pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples that categoricallyexclude the f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g of all new projects <str<strong>on</strong>g>in</str<strong>on</strong>g>volv<str<strong>on</strong>g>in</str<strong>on</strong>g>gthe exploitati<strong>on</strong> of tar s<strong>and</strong>s <strong>and</strong> other forms of‘unc<strong>on</strong>venti<strong>on</strong>al’ oil.• Commit to work<str<strong>on</strong>g>in</str<strong>on</strong>g>g with groups such as Carb<strong>on</strong>Disclosure Project <strong>and</strong> BankTrack to developworkable <str<strong>on</strong>g>in</str<strong>on</strong>g>struments for measur<str<strong>on</strong>g>in</str<strong>on</strong>g>g f<str<strong>on</strong>g>in</str<strong>on</strong>g>anced (or‘embedded’) emissi<strong>on</strong>s, <strong>and</strong> adopt reducti<strong>on</strong> targetsfor each bank. Provide a str<str<strong>on</strong>g>in</str<strong>on</strong>g>gent timel<str<strong>on</strong>g>in</str<strong>on</strong>g>e for this.9
IMPACTSOfEXTRACTION11
THEIThe impacts of tar s<strong>and</strong>s extracti<strong>on</strong> have been welldocumented <str<strong>on</strong>g>in</str<strong>on</strong>g> publicati<strong>on</strong>s like Unc<strong>on</strong>venti<strong>on</strong>al Oil –Scrap<str<strong>on</strong>g>in</str<strong>on</strong>g>g the bottom of the barrel? 6 by WWF <strong>and</strong> the CooperativeBank, <strong>and</strong> Dirty Oil – How the tar s<strong>and</strong>s are fuell<str<strong>on</strong>g>in</str<strong>on</strong>g>gthe global climate crisis by Greenpeace Canada. 7 Suchdetailed analysis of the various impacts of m<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g operati<strong>on</strong>sis bey<strong>on</strong>d the scope of this report, which does no more thanprovide a brief overview of the pr<str<strong>on</strong>g>in</str<strong>on</strong>g>cipal impacts.MPACTSOFExtracti<strong>on</strong>Climate impactsThere is no dispute that the process of tar s<strong>and</strong>s extracti<strong>on</strong>is more emissi<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>tensive than that of c<strong>on</strong>venti<strong>on</strong>al oilsources, due to the extra energy <str<strong>on</strong>g>in</str<strong>on</strong>g>volved <str<strong>on</strong>g>in</str<strong>on</strong>g> m<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g the tars<strong>and</strong>s, or <str<strong>on</strong>g>in</str<strong>on</strong>g> the use of large amounts of natural gas <str<strong>on</strong>g>in</str<strong>on</strong>g> orderto super-heat the bitum<str<strong>on</strong>g>in</str<strong>on</strong>g>ous mass <str<strong>on</strong>g>in</str<strong>on</strong>g> the <str<strong>on</strong>g>in</str<strong>on</strong>g> situ process.There is however disagreement as to the magnitude ofthe <str<strong>on</strong>g>in</str<strong>on</strong>g>creased emissi<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>tensity. The lower end of thespectrum of calculati<strong>on</strong>s (10-15% more emissi<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>tensivethan c<strong>on</strong>venti<strong>on</strong>al fuels) made by the oil <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry itself <strong>and</strong>the Albertan government have been challenged by Canadianclimate change academics. 8 In c<strong>on</strong>trast, the Pemb<str<strong>on</strong>g>in</str<strong>on</strong>g>aInstitute has calculated that 28.6 kg of CO 2is emitted <str<strong>on</strong>g>in</str<strong>on</strong>g> theproducti<strong>on</strong> of a c<strong>on</strong>venti<strong>on</strong>al barrel of oil, while the averagebarrel of oil produced from tar s<strong>and</strong>s is resp<strong>on</strong>sible forpump<str<strong>on</strong>g>in</str<strong>on</strong>g>g 85.5 kg of CO 2<str<strong>on</strong>g>in</str<strong>on</strong>g>to the atmosphere, an <str<strong>on</strong>g>in</str<strong>on</strong>g>crease ofjust under 300%. 9 These calculati<strong>on</strong>s do not <str<strong>on</strong>g>in</str<strong>on</strong>g>clude factors12
such as carb<strong>on</strong> released <str<strong>on</strong>g>in</str<strong>on</strong>g>to the atmosphere throughdeforestati<strong>on</strong> as a result of the m<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g process, or carb<strong>on</strong>leaked from tail<str<strong>on</strong>g>in</str<strong>on</strong>g>gs p<strong>on</strong>ds, so the reality is that the figurewould be substantially higher.Regardless of the magnitude of the <str<strong>on</strong>g>in</str<strong>on</strong>g>crease <str<strong>on</strong>g>in</str<strong>on</strong>g> emissi<strong>on</strong>s<str<strong>on</strong>g>in</str<strong>on</strong>g>tensity, there still rema<str<strong>on</strong>g>in</str<strong>on</strong>g>s the sheer scale of the carb<strong>on</strong>emissi<strong>on</strong>s locked <str<strong>on</strong>g>in</str<strong>on</strong>g>to the amount of tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> Canadathat could be extracted <strong>and</strong> burned. The prov<str<strong>on</strong>g>in</str<strong>on</strong>g>ce of Albertahas proven reserves of 174 billi<strong>on</strong> barrels of oil, 10 whichmakes it sec<strong>on</strong>d <strong>on</strong>ly to Saudi Arabia <str<strong>on</strong>g>in</str<strong>on</strong>g> terms of provenreserves. 11 Scientists <strong>and</strong> many civil society organisati<strong>on</strong>saround the world have called for atmospheric carb<strong>on</strong> to bestabilised at below 350ppm 12 <str<strong>on</strong>g>in</str<strong>on</strong>g> order to avoid the worstimpacts of runaway climate change. 13 Current levels ofatmospheric carb<strong>on</strong> are already at 387ppm <strong>and</strong> ris<str<strong>on</strong>g>in</str<strong>on</strong>g>g atabout 2ppm annually. It is estimated that the exploitati<strong>on</strong>of Canadian tar s<strong>and</strong>s <strong>and</strong> US tar shale reserves wouldresult <str<strong>on</strong>g>in</str<strong>on</strong>g> ‘well to wheel’ 14 emissi<strong>on</strong>s that would <str<strong>on</strong>g>in</str<strong>on</strong>g>creaseatmospheric carb<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the regi<strong>on</strong> of 49 <strong>and</strong> 65ppm. 15 <strong>Tar</strong>s<strong>and</strong>s exploitati<strong>on</strong> moves us even further away from thepossibility of stabilis<str<strong>on</strong>g>in</str<strong>on</strong>g>g at below 350ppm.Other envir<strong>on</strong>mental impactsThe exacerbati<strong>on</strong> of climate change is <strong>on</strong>e the most seriousc<strong>on</strong>sequences of tar s<strong>and</strong>s extracti<strong>on</strong>, but a number ofother, more localised, envir<strong>on</strong>mental impacts have also beenHow are tar s<strong>and</strong>s extracted?<strong>Tar</strong> s<strong>and</strong>s are found <str<strong>on</strong>g>in</str<strong>on</strong>g> the ground <str<strong>on</strong>g>in</str<strong>on</strong>g> the form ofbitumen, which is solid at normal temperatures <strong>and</strong>mixed <str<strong>on</strong>g>in</str<strong>on</strong>g> with s<strong>and</strong>, clay <strong>and</strong> water. The bitumen isfound <str<strong>on</strong>g>in</str<strong>on</strong>g> two locati<strong>on</strong>s: when it’s closer to the surfaceit is extracted us<str<strong>on</strong>g>in</str<strong>on</strong>g>g giant open pit m<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g techniques,<strong>and</strong> when it’s further down, high pressure steam<str<strong>on</strong>g>in</str<strong>on</strong>g>jecti<strong>on</strong> (<str<strong>on</strong>g>in</str<strong>on</strong>g> situ) technology is required to remove it.Open pit m<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g strips away the trees from the toplayers of the earth to expose the bitumen beneathit. This process destroys the local envir<strong>on</strong>ment <strong>and</strong>ecosystems, leav<str<strong>on</strong>g>in</str<strong>on</strong>g>g gap<str<strong>on</strong>g>in</str<strong>on</strong>g>g open pit m<str<strong>on</strong>g>in</str<strong>on</strong>g>es up to 75meters deep as scars <strong>on</strong> the l<strong>and</strong>scape.In situ m<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g, the technique needed to reach 80% ofthe bitumen, requires <str<strong>on</strong>g>in</str<strong>on</strong>g>ject<str<strong>on</strong>g>in</str<strong>on</strong>g>g the bitumen with highpressuresteam to separate the oil from the s<strong>and</strong> so that itcan be piped to the surface. Heat<str<strong>on</strong>g>in</str<strong>on</strong>g>g the water to producethe steam requires large quantities of natural gas.documented. The extracti<strong>on</strong> of bitumen <strong>and</strong> the producti<strong>on</strong> ofsyncrude are very water <str<strong>on</strong>g>in</str<strong>on</strong>g>tensive, with each barrel requir<str<strong>on</strong>g>in</str<strong>on</strong>g>gan estimated two to four barrels of water. The Athabasca River<str<strong>on</strong>g>in</str<strong>on</strong>g> Alberta is the primary source of water for the 539 milli<strong>on</strong>13
guaranteed Indigenous Peoples the “right to pursue theirusual vocati<strong>on</strong>s of hunt<str<strong>on</strong>g>in</str<strong>on</strong>g>g, trapp<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>and</strong> fish<str<strong>on</strong>g>in</str<strong>on</strong>g>g throughoutthe tract”, many First Nati<strong>on</strong> citizens have felt obliged tostop or reduce such activities for fear of toxic c<strong>on</strong>tam<str<strong>on</strong>g>in</str<strong>on</strong>g>ati<strong>on</strong>through tar s<strong>and</strong>s extracti<strong>on</strong>. There is <str<strong>on</strong>g>in</str<strong>on</strong>g>creas<str<strong>on</strong>g>in</str<strong>on</strong>g>g anecdotalevidence of fisherfolk f<str<strong>on</strong>g>in</str<strong>on</strong>g>d<str<strong>on</strong>g>in</str<strong>on</strong>g>g boils <strong>and</strong> lesi<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> fish, <strong>and</strong>hunters f<str<strong>on</strong>g>in</str<strong>on</strong>g>d<str<strong>on</strong>g>in</str<strong>on</strong>g>g tumours <str<strong>on</strong>g>in</str<strong>on</strong>g> game.Fort Chipewyan, which is located <strong>on</strong> the shore of LakeAthabasca <strong>and</strong> downstream from numerous tar s<strong>and</strong>s m<str<strong>on</strong>g>in</str<strong>on</strong>g>es,has been described as ‘ground zero’ for the devastati<strong>on</strong>caused by Alberta’s oil boom. A local doctor has raisedc<strong>on</strong>cerns over alarm<str<strong>on</strong>g>in</str<strong>on</strong>g>gly high rates of what should bevery rare bile duct cancers <str<strong>on</strong>g>in</str<strong>on</strong>g> the town, as well as reportedabnormal rates of immune-system related c<strong>on</strong>diti<strong>on</strong>s. 25A study commissi<strong>on</strong>ed by the Alberta Health Servicesc<strong>on</strong>firmed <str<strong>on</strong>g>in</str<strong>on</strong>g> 2009 that there were <str<strong>on</strong>g>in</str<strong>on</strong>g>deed elevated cancerrates <str<strong>on</strong>g>in</str<strong>on</strong>g> the community. 26High levels of dangerous tox<str<strong>on</strong>g>in</str<strong>on</strong>g>s <str<strong>on</strong>g>in</str<strong>on</strong>g> the Athabasca Riverhave been found <str<strong>on</strong>g>in</str<strong>on</strong>g> areas downstream from tar s<strong>and</strong>sdevelopments. A study <str<strong>on</strong>g>in</str<strong>on</strong>g> 2007 commissi<strong>on</strong>ed by the localhealth authority of Fort Chipewyan revealed high levelsof arsenic, alum<str<strong>on</strong>g>in</str<strong>on</strong>g>ium, chromium, cobalt, copper, ir<strong>on</strong>,led, phosphorous, selenium, titanium, <strong>and</strong> phenols <str<strong>on</strong>g>in</str<strong>on</strong>g> thewater. 28 It found high levels of arsenic, cadmium, polycyclicaromatic hydrocarb<strong>on</strong>s (PAHs) <strong>and</strong> res<str<strong>on</strong>g>in</str<strong>on</strong>g> acids <str<strong>on</strong>g>in</str<strong>on</strong>g> thesediment, as well as high levels of mercury <str<strong>on</strong>g>in</str<strong>on</strong>g> tested fish.Of these substances, the three c<strong>on</strong>tam<str<strong>on</strong>g>in</str<strong>on</strong>g>ants of mostc<strong>on</strong>cern for human health are arsenic, PAHs <strong>and</strong> mercury.While PAHs <strong>and</strong> their carc<str<strong>on</strong>g>in</str<strong>on</strong>g>ogenic levels vary, they are allc<strong>on</strong>sidered toxic <strong>and</strong> l<str<strong>on</strong>g>in</str<strong>on</strong>g>ked to cancer, vascular damage,kidney damage, liver <strong>and</strong> sk<str<strong>on</strong>g>in</str<strong>on</strong>g> damage. Arsenic is a potentcarc<str<strong>on</strong>g>in</str<strong>on</strong>g>ogen that is also known to have a synergistic effect <str<strong>on</strong>g>in</str<strong>on</strong>g>c<strong>on</strong>tribut<str<strong>on</strong>g>in</str<strong>on</strong>g>g to cancer when comb<str<strong>on</strong>g>in</str<strong>on</strong>g>ed with other elements— for example, comb<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g exposure to both arsenic <strong>and</strong>PAHs can <str<strong>on</strong>g>in</str<strong>on</strong>g>crease the risk of cancer by 8 to 18 fold. Threatsfrom high levels of mercury <str<strong>on</strong>g>in</str<strong>on</strong>g>clude nerve damage, cognitiveimpairment, kidney failure, respiratory failure <strong>and</strong> death.Although establish<str<strong>on</strong>g>in</str<strong>on</strong>g>g a direct causal relati<strong>on</strong> between<str<strong>on</strong>g>in</str<strong>on</strong>g>creases <str<strong>on</strong>g>in</str<strong>on</strong>g> medical compla<str<strong>on</strong>g>in</str<strong>on</strong>g>ts <strong>and</strong> specific pollutantsis notoriously tricky, people from the local communitiesare adamant that tar s<strong>and</strong>s are the source of their healthproblems.The right of Indigenous Peoples to Free Prior <strong>and</strong> InformedC<strong>on</strong>sent to developments that take place <strong>on</strong> their l<strong>and</strong>s is<strong>on</strong>e that has been recognized by the United Nati<strong>on</strong>s. Despitethe fact that some c<strong>on</strong>tracts have been signed betweentribal leaders <strong>and</strong> oil companies, many communities feelthat this has often taken place <str<strong>on</strong>g>in</str<strong>on</strong>g> a way that encourages a‘divide <strong>and</strong> c<strong>on</strong>quer’ strategy that offers benefits to relativelyfew but disregards the <str<strong>on</strong>g>in</str<strong>on</strong>g>terests <strong>and</strong> wishes of <str<strong>on</strong>g>in</str<strong>on</strong>g>digenouscommunities generally. In 2008, the Internati<strong>on</strong>al IndianTreaty Council 29 made a submissi<strong>on</strong> to the United Nati<strong>on</strong>s15
Human Rights Council that asserted that, “the exp<strong>and</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>g tars<strong>and</strong>s development has taken place without Right to FreePrior Informed C<strong>on</strong>sent of many of the Indigenous Peopleswhose health, ecosystems, subsistence <strong>and</strong> way of life arebe<str<strong>on</strong>g>in</str<strong>on</strong>g>g impacted.” 30A number of First Nati<strong>on</strong> communities are organis<str<strong>on</strong>g>in</str<strong>on</strong>g>g toresist the expansi<strong>on</strong> of tar s<strong>and</strong>s <strong>on</strong> their l<strong>and</strong>s, rang<str<strong>on</strong>g>in</str<strong>on</strong>g>gfrom grassroots activities, to legal challenges such as the<strong>on</strong>e that the Beaver Lake Cree Nati<strong>on</strong> is mount<str<strong>on</strong>g>in</str<strong>on</strong>g>g aga<str<strong>on</strong>g>in</str<strong>on</strong>g>stthe Albertan <strong>and</strong> Canadian governments. The First Nati<strong>on</strong>communities are ask<str<strong>on</strong>g>in</str<strong>on</strong>g>g for an <str<strong>on</strong>g>in</str<strong>on</strong>g>juncti<strong>on</strong> aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st any new tars<strong>and</strong>s developments <strong>on</strong> their l<strong>and</strong>, cit<str<strong>on</strong>g>in</str<strong>on</strong>g>g more than 17,000<str<strong>on</strong>g>in</str<strong>on</strong>g>fr<str<strong>on</strong>g>in</str<strong>on</strong>g>gements <strong>on</strong> their treaty rights, by every major oilcompany <str<strong>on</strong>g>in</str<strong>on</strong>g> the world. 31<strong>Tar</strong> <strong>S<strong>and</strong>s</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> other parts of the world: The Republic ofthe C<strong>on</strong>go (C<strong>on</strong>go-Brazzaville)In July 2009, a coaliti<strong>on</strong> of groups, <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g C<strong>on</strong>golesehuman rights organisati<strong>on</strong>s <strong>and</strong> Campagna per laRiforma della Banca M<strong>on</strong>diale, published a report,Energy Futures that exam<str<strong>on</strong>g>in</str<strong>on</strong>g>ed Italian oil company Eni’s<str<strong>on</strong>g>in</str<strong>on</strong>g>vestment <str<strong>on</strong>g>in</str<strong>on</strong>g> develop<str<strong>on</strong>g>in</str<strong>on</strong>g>g tar s<strong>and</strong>s (as well as palm oil<strong>and</strong> reduc<str<strong>on</strong>g>in</str<strong>on</strong>g>g gas flar<str<strong>on</strong>g>in</str<strong>on</strong>g>g as a carb<strong>on</strong> offset project) <str<strong>on</strong>g>in</str<strong>on</strong>g>the C<strong>on</strong>go bas<str<strong>on</strong>g>in</str<strong>on</strong>g>. 33 Despite the fact that C<strong>on</strong>go is Africa’sfifth largest oil producer, 34 70% of the populati<strong>on</strong> livesbelow the poverty l<str<strong>on</strong>g>in</str<strong>on</strong>g>e. 35 C<strong>on</strong>go is a classic example of anAfrican country where oil deposits have resulted <str<strong>on</strong>g>in</str<strong>on</strong>g> the‘resource curse’ – the paradox <str<strong>on</strong>g>in</str<strong>on</strong>g> which countries with anabundance of resources (often fossil fuel resources) havea tendency to have lower levels of ec<strong>on</strong>omic growth <strong>and</strong>16
worse development outcomes than countries with lessnatural resources.In May 2008, Paolo Scar<strong>on</strong>i, the CEO of Eni signed a dealwith Bruno Itoua, the Energy M<str<strong>on</strong>g>in</str<strong>on</strong>g>ister for the Republicof C<strong>on</strong>go, for a projected €3 billi<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment overseveral years. This deal <str<strong>on</strong>g>in</str<strong>on</strong>g>cluded permits for tar s<strong>and</strong>sexplorati<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> two areas cover<str<strong>on</strong>g>in</str<strong>on</strong>g>g a total of 1,790 squarekilometres. The size of the C<strong>on</strong>go tar s<strong>and</strong>s reservesare as yet unknown, but Eni estimates that at least 500milli<strong>on</strong> barrels are recoverable, with up to a further2.5 billi<strong>on</strong> barrels that may evade discovery, or not beec<strong>on</strong>omically or technologically feasible to extract. 36The forests of the C<strong>on</strong>go Bas<str<strong>on</strong>g>in</str<strong>on</strong>g> provide vital regi<strong>on</strong>al<strong>and</strong> global ‘ecological services’ as a carb<strong>on</strong> s<str<strong>on</strong>g>in</str<strong>on</strong>g>k <strong>and</strong>water catchment bas<str<strong>on</strong>g>in</str<strong>on</strong>g>, as well as play<str<strong>on</strong>g>in</str<strong>on</strong>g>g a critical rolefor global biodiversity c<strong>on</strong>servati<strong>on</strong>. 37 Questi<strong>on</strong>s havebeen raised <strong>on</strong> the impact that tar s<strong>and</strong>s extracti<strong>on</strong>will have <strong>on</strong> forests <str<strong>on</strong>g>in</str<strong>on</strong>g> C<strong>on</strong>go given that large-scalearboreal devastati<strong>on</strong> has been <strong>on</strong>e of the moredocumented impacts of m<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g operati<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> Canada.There have been c<strong>on</strong>tradictory statements from Enias to how much forested l<strong>and</strong> will be affected. In July2009, CEO Scar<strong>on</strong>i said that, “our tar s<strong>and</strong>s are not <str<strong>on</strong>g>in</str<strong>on</strong>g>a tropical forest area otherwise we wouldn’t do it.” 38 Inc<strong>on</strong>trast, a report <str<strong>on</strong>g>in</str<strong>on</strong>g> March 2009 from the company’sExplorati<strong>on</strong> <strong>and</strong> Producti<strong>on</strong> divisi<strong>on</strong> said that, “theresults [of remote sens<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>and</strong> mapp<str<strong>on</strong>g>in</str<strong>on</strong>g>g] show thattropical forest <strong>and</strong> other very sensitive envir<strong>on</strong>mentsof biosphere (e.g. marshl<strong>and</strong>s) represent about 50% to70% of the [tar s<strong>and</strong>s] permits.” 39C<strong>on</strong>go has been categorised <str<strong>on</strong>g>in</str<strong>on</strong>g> the Index of AfricanGovernance as <strong>on</strong>e of the ten worst perform<str<strong>on</strong>g>in</str<strong>on</strong>g>gcountries. 40 There is real c<strong>on</strong>cern that the lack ofenvir<strong>on</strong>mental <strong>and</strong> human rights regulati<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>C<strong>on</strong>go could result <str<strong>on</strong>g>in</str<strong>on</strong>g> even more serious impacts<strong>on</strong> communities <strong>and</strong> ecosystems than have beenwitnessed <str<strong>on</strong>g>in</str<strong>on</strong>g> Canada.While Eni is still at the exploratory stage of tar s<strong>and</strong>sextracti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> C<strong>on</strong>go, evidence has already surfaced ofcommunities be<str<strong>on</strong>g>in</str<strong>on</strong>g>g adversely impacted by bulldozersdestroy<str<strong>on</strong>g>in</str<strong>on</strong>g>g l<strong>and</strong> <strong>and</strong> crops while clear<str<strong>on</strong>g>in</str<strong>on</strong>g>g access routesto sampl<str<strong>on</strong>g>in</str<strong>on</strong>g>g sites. Accord<str<strong>on</strong>g>in</str<strong>on</strong>g>g to field research carriedout by tar s<strong>and</strong>s researchers <str<strong>on</strong>g>in</str<strong>on</strong>g> C<strong>on</strong>go <str<strong>on</strong>g>in</str<strong>on</strong>g> 2009, “fourfarmers <str<strong>on</strong>g>in</str<strong>on</strong>g>terviewed stated that they (<strong>and</strong> others) werenot c<strong>on</strong>sulted prior to the destructi<strong>on</strong> of their l<strong>and</strong> <strong>and</strong>crops, <strong>and</strong> that no compensati<strong>on</strong> has been paid.” 41 Asof July 2009, Eni admitted that it had not carried outany public c<strong>on</strong>sultati<strong>on</strong> with local communities abouttheir plans for tar s<strong>and</strong>s extracti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the regi<strong>on</strong>. 4217
Billy Joe Laboucan, Peace River Regi<strong>on</strong>“This year 2010, I will be 56 years old, so it’s about ahalf century s<str<strong>on</strong>g>in</str<strong>on</strong>g>ce I was small boy liv<str<strong>on</strong>g>in</str<strong>on</strong>g>g with my parents,brothers, sisters, gr<strong>and</strong>parents <strong>and</strong> all of the aunts, uncles<strong>and</strong> cous<str<strong>on</strong>g>in</str<strong>on</strong>g>s <str<strong>on</strong>g>in</str<strong>on</strong>g> the trapp<str<strong>on</strong>g>in</str<strong>on</strong>g>g community of Bis<strong>on</strong> Lake,Alberta, approximately 800 km north of Edm<strong>on</strong>t<strong>on</strong>. It waspopulated by <str<strong>on</strong>g>in</str<strong>on</strong>g>dustrious <strong>and</strong> successful trappers <strong>and</strong> furbuyers who plied the trappers with whiskey <str<strong>on</strong>g>in</str<strong>on</strong>g> order toget the best trades. It was accessible <strong>on</strong>ly to horse <strong>and</strong>dog teams <strong>and</strong> some White trappers <str<strong>on</strong>g>in</str<strong>on</strong>g> small tractors <strong>and</strong>bush planes, but we lived well. Our lifestyle <strong>and</strong> livelihooddepended <strong>on</strong> fur-bear<str<strong>on</strong>g>in</str<strong>on</strong>g>g animals who depended <strong>on</strong> a cleanenvir<strong>on</strong>ment with fresh water, <strong>and</strong> it seemed like there wasno end <str<strong>on</strong>g>in</str<strong>on</strong>g> sight. We took this bounty for granted <strong>and</strong> wemade a good liv<str<strong>on</strong>g>in</str<strong>on</strong>g>g. Often the yearly trapp<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g>come wouldsurpass wage earners <strong>and</strong> the salaried folk alike. For us <str<strong>on</strong>g>in</str<strong>on</strong>g>this regi<strong>on</strong>, this trend would c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ue <str<strong>on</strong>g>in</str<strong>on</strong>g>to the late 1970s.Then, the fur ec<strong>on</strong>omy fell through, dealt a crippl<str<strong>on</strong>g>in</str<strong>on</strong>g>g blowby the European fur embargo led by actors such as BridgetBardot. For the first time, the Cree/Metis people liv<str<strong>on</strong>g>in</str<strong>on</strong>g>gam<strong>on</strong>g the communities of Bis<strong>on</strong> Lake, Haig Lake, MartenRiver, Cadotte Lake, Little Buffalo, <strong>and</strong> Lubic<strong>on</strong> Lake had torely <strong>on</strong> the prov<str<strong>on</strong>g>in</str<strong>on</strong>g>cial <strong>and</strong> federal government programs tosurvive. It was the beg<str<strong>on</strong>g>in</str<strong>on</strong>g>n<str<strong>on</strong>g>in</str<strong>on</strong>g>g of hard times. But first let’sstep back fifty years <strong>and</strong> work towards the present. For thenext ec<strong>on</strong>omic eng<str<strong>on</strong>g>in</str<strong>on</strong>g>e would be driven by the extracti<strong>on</strong> ofcrude oil, natural gas, <strong>and</strong> later bitumen, or what’s known astar s<strong>and</strong>s.Life <str<strong>on</strong>g>in</str<strong>on</strong>g> Bis<strong>on</strong> Lake dur<str<strong>on</strong>g>in</str<strong>on</strong>g>g the w<str<strong>on</strong>g>in</str<strong>on</strong>g>ter <strong>and</strong> spr<str<strong>on</strong>g>in</str<strong>on</strong>g>g was hardbut reward<str<strong>on</strong>g>in</str<strong>on</strong>g>g, <strong>and</strong> it was the <strong>on</strong>ly time people stayedthere. After the spr<str<strong>on</strong>g>in</str<strong>on</strong>g>g trapp<str<strong>on</strong>g>in</str<strong>on</strong>g>g was over <str<strong>on</strong>g>in</str<strong>on</strong>g> mid-April, thecommunity would vacate to homes to the other communitiessouth or to c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ue liv<str<strong>on</strong>g>in</str<strong>on</strong>g>g off the l<strong>and</strong> elsewhere. My father<strong>and</strong> the whole family would travel there by horses <strong>and</strong>wag<strong>on</strong>.We would spend w<strong>on</strong>derful days at our summer home atPrairie Lake (now known as Lubic<strong>on</strong> Lake). This is where weprepared for the trapp<str<strong>on</strong>g>in</str<strong>on</strong>g>g seas<strong>on</strong>; <strong>and</strong> sometimes we cameback to spend the Christmas holidays there. Our garden wasthere too. By wag<strong>on</strong> trails, the distance from our summerhome to the w<str<strong>on</strong>g>in</str<strong>on</strong>g>ter place <str<strong>on</strong>g>in</str<strong>on</strong>g> Bis<strong>on</strong> Lake was about 160kilometres. We travelled year round. In the w<str<strong>on</strong>g>in</str<strong>on</strong>g>ter, travelwas with a horse-drawn caboose heated with a small woodheater.Then, <str<strong>on</strong>g>in</str<strong>on</strong>g> the fall, after families helped immigrant farmersclear l<strong>and</strong> for agriculture, we would all move back northto our trapp<str<strong>on</strong>g>in</str<strong>on</strong>g>g homes. It was also about that same time,that the oil companies started explor<str<strong>on</strong>g>in</str<strong>on</strong>g>g for oil <strong>and</strong> gas.So<strong>on</strong> there were a myriad of seismic l<str<strong>on</strong>g>in</str<strong>on</strong>g>es carved out <str<strong>on</strong>g>in</str<strong>on</strong>g>the forests. Then, the oil boom struck. In Canada, the oil<strong>and</strong> gas, <strong>and</strong> now, tar s<strong>and</strong>s extracti<strong>on</strong> leaves beh<str<strong>on</strong>g>in</str<strong>on</strong>g>d a18
disastrous legacy especially for Aborig<str<strong>on</strong>g>in</str<strong>on</strong>g>al communities.The moose, fur-bear<str<strong>on</strong>g>in</str<strong>on</strong>g>g animals, the fish <strong>and</strong> birds aredecreas<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> populati<strong>on</strong>. The water is c<strong>on</strong>tam<str<strong>on</strong>g>in</str<strong>on</strong>g>ated <strong>and</strong> theair is polluted with people becom<str<strong>on</strong>g>in</str<strong>on</strong>g>g sick with respiratoryillnesses <strong>and</strong> diseases such as cancer. However, now <str<strong>on</strong>g>in</str<strong>on</strong>g>order to survive <strong>and</strong> earn a liv<str<strong>on</strong>g>in</str<strong>on</strong>g>g to raise families someparticipate. There are presently almost no alternatives.I’ve tried to illustrate that Indigenous people <str<strong>on</strong>g>in</str<strong>on</strong>g> NorthAmerica, <strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>deed globally, often participate <str<strong>on</strong>g>in</str<strong>on</strong>g> thedepleti<strong>on</strong> <strong>and</strong> polluti<strong>on</strong> of the natural envir<strong>on</strong>ment by be<str<strong>on</strong>g>in</str<strong>on</strong>g>gworkers <strong>on</strong> these extracti<strong>on</strong> projects but far too often, weare the <strong>on</strong>es who are left with the c<strong>on</strong>sequences. Otherthan local workers receiv<str<strong>on</strong>g>in</str<strong>on</strong>g>g wages, the local communitiesreceive little benefit from the extracti<strong>on</strong> of natural resources<str<strong>on</strong>g>in</str<strong>on</strong>g> their territories with the majority of the revenue flow<str<strong>on</strong>g>in</str<strong>on</strong>g>gsouth or <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>ally. For example, the Aborig<str<strong>on</strong>g>in</str<strong>on</strong>g>alpeople of the Athabasca Delta suffer the toxic results ofthe tar s<strong>and</strong>s up<strong>on</strong> which their trap-l<str<strong>on</strong>g>in</str<strong>on</strong>g>es are located. Forus <str<strong>on</strong>g>in</str<strong>on</strong>g> the Bis<strong>on</strong> Lake area, much of the virg<str<strong>on</strong>g>in</str<strong>on</strong>g> forests havebeen clearcut, forc<str<strong>on</strong>g>in</str<strong>on</strong>g>g moose <strong>and</strong> their predators to move<strong>on</strong>to neighbour<str<strong>on</strong>g>in</str<strong>on</strong>g>g lowl<strong>and</strong>s <strong>and</strong> w<str<strong>on</strong>g>in</str<strong>on</strong>g>dbreaks with<str<strong>on</strong>g>in</str<strong>on</strong>g> theagricultural areas. On top of that, pump jacks (or ‘nodd<str<strong>on</strong>g>in</str<strong>on</strong>g>gd<strong>on</strong>keys’) that pump oil <strong>and</strong> gas are pois<strong>on</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>g animals suchas moose, water fowl <strong>and</strong> fish.Hav<str<strong>on</strong>g>in</str<strong>on</strong>g>g been raised there, I still f<str<strong>on</strong>g>in</str<strong>on</strong>g>d solace <str<strong>on</strong>g>in</str<strong>on</strong>g> the bush<strong>and</strong> often take my youngest s<strong>on</strong>, twelve, hunt<str<strong>on</strong>g>in</str<strong>on</strong>g>g moose,rabbits or grouse. It is disturb<str<strong>on</strong>g>in</str<strong>on</strong>g>g to f<str<strong>on</strong>g>in</str<strong>on</strong>g>d more <strong>and</strong> moremoose <str<strong>on</strong>g>in</str<strong>on</strong>g> this regi<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> poor health bear<str<strong>on</strong>g>in</str<strong>on</strong>g>g the brunt of ac<strong>on</strong>tam<str<strong>on</strong>g>in</str<strong>on</strong>g>ated habitat. Just last year, I hunted a moose, <strong>on</strong>lyto f<str<strong>on</strong>g>in</str<strong>on</strong>g>d that it was befouled by tumors <str<strong>on</strong>g>in</str<strong>on</strong>g> its carcass. Likewisefisherman <strong>on</strong> the Athabasca River f<str<strong>on</strong>g>in</str<strong>on</strong>g>d deformed fish <strong>and</strong>have to limit their weekly c<strong>on</strong>sumpti<strong>on</strong> due to mercurylevels.All al<strong>on</strong>g we as Indigenous people here <strong>on</strong> earth have tosome extent participated <str<strong>on</strong>g>in</str<strong>on</strong>g> the destructi<strong>on</strong> of home <strong>and</strong>Mother Earth, I th<str<strong>on</strong>g>in</str<strong>on</strong>g>k now is the time to seek envir<strong>on</strong>mentaljustice; <strong>and</strong> help <str<strong>on</strong>g>in</str<strong>on</strong>g> clean<str<strong>on</strong>g>in</str<strong>on</strong>g>g up our aquifers, air <strong>and</strong> soil.We need to resort to our stewardship ideologies that werepracticed before immigrants settled here <str<strong>on</strong>g>in</str<strong>on</strong>g> North America.Billy Joe Laboucan isa Cree l<str<strong>on</strong>g>in</str<strong>on</strong>g>guist <strong>and</strong>specializes <str<strong>on</strong>g>in</str<strong>on</strong>g> Creelanguage <strong>and</strong> cultural<str<strong>on</strong>g>in</str<strong>on</strong>g>structi<strong>on</strong>, curriculumdevelopment,Indigenousstorytell<str<strong>on</strong>g>in</str<strong>on</strong>g>g, <strong>and</strong>filmmak<str<strong>on</strong>g>in</str<strong>on</strong>g>g workshopsto protect, preserve<strong>and</strong> promoteIndigenous languages<strong>and</strong> culture.19
<strong>UK</strong>BANKFINANCING21
<strong>UK</strong>BANKFINANCINGF<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial data presented here are based <strong>on</strong> underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>gleague tables compiled by Bloomberg for January 1, 2007 toDecember 31, 2009. Totals are derived from loans, corporatedebt <strong>and</strong> equity issuances <str<strong>on</strong>g>in</str<strong>on</strong>g>volv<str<strong>on</strong>g>in</str<strong>on</strong>g>g companies withsignificant operati<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> the tar s<strong>and</strong>s listed <str<strong>on</strong>g>in</str<strong>on</strong>g> Appendix I.Figures are based <strong>on</strong> report<str<strong>on</strong>g>in</str<strong>on</strong>g>g by <strong>banks</strong> to Bloomberg, butmay be <str<strong>on</strong>g>in</str<strong>on</strong>g>complete due to undisclosed proprietary bank<str<strong>on</strong>g>in</str<strong>on</strong>g>grelati<strong>on</strong>ships.Table 1 looks at the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance that <strong>RBS</strong>, Barclays <strong>and</strong> HSBChave made to companies that are engaged <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s overa three year period from January 2007 through to December2009 <strong>and</strong> has been collated us<str<strong>on</strong>g>in</str<strong>on</strong>g>g a Bloomberg term<str<strong>on</strong>g>in</str<strong>on</strong>g>al. 43The data has been broken down <str<strong>on</strong>g>in</str<strong>on</strong>g>to loans, corporate debtunderwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g 44 <strong>and</strong> equity underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g.The totals represent underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g to companies that (a) havean ownership stake <str<strong>on</strong>g>in</str<strong>on</strong>g> exist<str<strong>on</strong>g>in</str<strong>on</strong>g>g tar s<strong>and</strong>s projects <strong>and</strong> projectsunder development; or (b) own, operate or are develop<str<strong>on</strong>g>in</str<strong>on</strong>g>gpipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es primarily be<str<strong>on</strong>g>in</str<strong>on</strong>g>g used to transport tar s<strong>and</strong>s products.All the figures <str<strong>on</strong>g>in</str<strong>on</strong>g> the table are <str<strong>on</strong>g>in</str<strong>on</strong>g> milli<strong>on</strong>s of US dollars <strong>and</strong>the full list<str<strong>on</strong>g>in</str<strong>on</strong>g>g of all the <str<strong>on</strong>g>in</str<strong>on</strong>g>dividual loans <strong>and</strong> underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>gscan be found <str<strong>on</strong>g>in</str<strong>on</strong>g> Appendix I. Totals may not reflect actuallend<str<strong>on</strong>g>in</str<strong>on</strong>g>g, rather they represent the full value of loans wherethe bank acted as lead book-runner (also called manag<str<strong>on</strong>g>in</str<strong>on</strong>g>gunderwriter, lead manager, etc). Where the bank was <strong>on</strong>e of22
multiple lead book-runners, value is awarded pro-rata.The data shows that <strong>RBS</strong> led underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g for over $7.5 billi<strong>on</strong><str<strong>on</strong>g>in</str<strong>on</strong>g> loans to tar s<strong>and</strong>s related companies, over five times morethan Barclays <strong>and</strong> over eleven times more than HSBC. Thisfigure for <strong>RBS</strong> represented 11.5 per cent of the total globalfigure of the 26 <strong>banks</strong> that were surveyed <str<strong>on</strong>g>in</str<strong>on</strong>g> this period, <strong>and</strong>is the highest figure for any bank outside of North America. 45Barclays topped other <strong>banks</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> lead underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g ofcorporate debt <strong>and</strong> equity, with a total of $12.4 billi<strong>on</strong>.The comb<str<strong>on</strong>g>in</str<strong>on</strong>g>ed total of underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g loans, equity <strong>and</strong>corporate debt for all 26 <strong>banks</strong> that were exam<str<strong>on</strong>g>in</str<strong>on</strong>g>ed us<str<strong>on</strong>g>in</str<strong>on</strong>g>gBloomberg was $205.92 billi<strong>on</strong>. The comb<str<strong>on</strong>g>in</str<strong>on</strong>g>ed <strong>UK</strong> total of$35.92 billi<strong>on</strong> means that the <strong>UK</strong> <strong>banks</strong> were resp<strong>on</strong>siblefor 17.4 percent of the global total – the highest share of anycountry outside of North America.Table 1 – all figures <str<strong>on</strong>g>in</str<strong>on</strong>g> US$ milli<strong>on</strong>Bank Loans Corporate DebtUnderwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>gEquityUnderwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g<strong>RBS</strong> 7,543.91 5,170.62 0Barclays 1,450 12,083.34 310.18HSBC 666.67 8,156.64 023
Mike Mercredi, Fort Chipewyan – Do<str<strong>on</strong>g>in</str<strong>on</strong>g>g time <str<strong>on</strong>g>in</str<strong>on</strong>g> the tar s<strong>and</strong>sFort McMurray is under siege by oil companies. The Prov<str<strong>on</strong>g>in</str<strong>on</strong>g>ceof Alberta is run by the corporati<strong>on</strong>s stati<strong>on</strong>ed <str<strong>on</strong>g>in</str<strong>on</strong>g> downtown Calgary <strong>and</strong> not <str<strong>on</strong>g>in</str<strong>on</strong>g> the Prov<str<strong>on</strong>g>in</str<strong>on</strong>g>ce’s capital of Edm<strong>on</strong>t<strong>on</strong>where the legislati<strong>on</strong> build<str<strong>on</strong>g>in</str<strong>on</strong>g>g sits. Alberta is not run by theLiberals, C<strong>on</strong>servatives/Tory, Green party or NDP, it is run byImperial oil, Suncor, Shell/Albian, CNRL, Syncrude <strong>and</strong> so<strong>on</strong> – the global oil comm<strong>and</strong>ers of the world market. The byproductsof oil/tar s<strong>and</strong>s are everywhere, <str<strong>on</strong>g>in</str<strong>on</strong>g> everyth<str<strong>on</strong>g>in</str<strong>on</strong>g>g weuse everyday.I started work<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the oil m<str<strong>on</strong>g>in</str<strong>on</strong>g>es <str<strong>on</strong>g>in</str<strong>on</strong>g> the 1990s <strong>and</strong> witnessedthe tar s<strong>and</strong>s boom, the <str<strong>on</strong>g>in</str<strong>on</strong>g>flux of people from all over theplanet <strong>and</strong> the devastat<str<strong>on</strong>g>in</str<strong>on</strong>g>g dismantl<str<strong>on</strong>g>in</str<strong>on</strong>g>g of Northern Alberta,400 t<strong>on</strong>s at a time. I used to drive the biggest trucks <str<strong>on</strong>g>in</str<strong>on</strong>g>the world, around the biggest earth mov<str<strong>on</strong>g>in</str<strong>on</strong>g>g equipment<strong>on</strong> the planet, <strong>on</strong> the biggest c<strong>on</strong>structi<strong>on</strong> projects knownto mank<str<strong>on</strong>g>in</str<strong>on</strong>g>d. I was <strong>on</strong> top of the world with my royal bankaccount <strong>and</strong> gas tank always full <str<strong>on</strong>g>in</str<strong>on</strong>g> my new Chevy truck.At the job site I was surrounded by the latest technologywith eng<str<strong>on</strong>g>in</str<strong>on</strong>g>eers <strong>and</strong> scientists from everywhere. Every<strong>on</strong>e<strong>and</strong> everyth<str<strong>on</strong>g>in</str<strong>on</strong>g>g was there to do <strong>on</strong>e th<str<strong>on</strong>g>in</str<strong>on</strong>g>g: extract thebitumen from the s<strong>and</strong> under the boreal forest, us<str<strong>on</strong>g>in</str<strong>on</strong>g>g waterfrom any <strong>and</strong> every source available. The boreal forest isa traditi<strong>on</strong>ally sacred area to First Nati<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> the regi<strong>on</strong>because it holds acres of traditi<strong>on</strong>al medic<str<strong>on</strong>g>in</str<strong>on</strong>g>al plants usedfor heal<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>and</strong> prayer. It also a scientifically crucial regi<strong>on</strong><str<strong>on</strong>g>in</str<strong>on</strong>g> Canada with an ecology that took tens of thous<strong>and</strong>s ofyears to form. It cannot be recreated or reclaimed. Right nowthe oil companies have laws allow<str<strong>on</strong>g>in</str<strong>on</strong>g>g them to cut down thetrees, remove the top soil, dra<str<strong>on</strong>g>in</str<strong>on</strong>g> the water <strong>and</strong> dig out everyt<strong>on</strong> of tar s<strong>and</strong>s.When I was work<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the m<str<strong>on</strong>g>in</str<strong>on</strong>g>es I started receiv<str<strong>on</strong>g>in</str<strong>on</strong>g>g ph<strong>on</strong>ecalls from friends <strong>and</strong> relatives about people gett<str<strong>on</strong>g>in</str<strong>on</strong>g>g sick<strong>and</strong> dy<str<strong>on</strong>g>in</str<strong>on</strong>g>g from back home <str<strong>on</strong>g>in</str<strong>on</strong>g> Fort Chipewyan. In <strong>on</strong>e year itwas scary to pick the ph<strong>on</strong>e because I knew who was call<str<strong>on</strong>g>in</str<strong>on</strong>g>g<strong>and</strong> that they were go<str<strong>on</strong>g>in</str<strong>on</strong>g>g to tell me that another pers<strong>on</strong> wasdiagnosed or sick, or had passed <strong>on</strong>. Then I hear it’s com<str<strong>on</strong>g>in</str<strong>on</strong>g>gfrom the water. I didn’t th<str<strong>on</strong>g>in</str<strong>on</strong>g>k about my job as be<str<strong>on</strong>g>in</str<strong>on</strong>g>g a part ofhealth problems happen<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> Fort Chipewyan. But, I had <str<strong>on</strong>g>in</str<strong>on</strong>g>the back of my m<str<strong>on</strong>g>in</str<strong>on</strong>g>d, like most First Nati<strong>on</strong>s people work<str<strong>on</strong>g>in</str<strong>on</strong>g>gthere, w<strong>on</strong>der<str<strong>on</strong>g>in</str<strong>on</strong>g>g what was actually happen<str<strong>on</strong>g>in</str<strong>on</strong>g>g.When you’re raised <str<strong>on</strong>g>in</str<strong>on</strong>g> the regi<strong>on</strong> you never get taught thatwhat you are do<str<strong>on</strong>g>in</str<strong>on</strong>g>g is destroy<str<strong>on</strong>g>in</str<strong>on</strong>g>g a way of life <strong>and</strong> kill<str<strong>on</strong>g>in</str<strong>on</strong>g>g<str<strong>on</strong>g>in</str<strong>on</strong>g>nocent people. It took some time <strong>and</strong> questi<strong>on</strong>s frompeople I worked with to make me th<str<strong>on</strong>g>in</str<strong>on</strong>g>k about this more,after witness<str<strong>on</strong>g>in</str<strong>on</strong>g>g, th<str<strong>on</strong>g>in</str<strong>on</strong>g>k<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>and</strong> do<str<strong>on</strong>g>in</str<strong>on</strong>g>g the actual destructi<strong>on</strong>I decided to leave the tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry. I had no plans ofbecom<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong>e of the voices from Fort Chipewyan speak<str<strong>on</strong>g>in</str<strong>on</strong>g>gout aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st the tar s<strong>and</strong>s development. I went back home toFort Chipewyan better known as ground zero <strong>and</strong> thus beganmy fight aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st the <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry. I lost family to this atrocity– this destructi<strong>on</strong> of a community <strong>and</strong> c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ued genocide24
– happen<str<strong>on</strong>g>in</str<strong>on</strong>g>g right now <str<strong>on</strong>g>in</str<strong>on</strong>g> a small town of 1,200 people <str<strong>on</strong>g>in</str<strong>on</strong>g>northern Alberta, Canada.The envir<strong>on</strong>mental effects of these projects are soastr<strong>on</strong>omically high that the government <strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry have<str<strong>on</strong>g>in</str<strong>on</strong>g>vested milli<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>to mak<str<strong>on</strong>g>in</str<strong>on</strong>g>g it seem like little is happen<str<strong>on</strong>g>in</str<strong>on</strong>g>g,when <str<strong>on</strong>g>in</str<strong>on</strong>g> fact, they are actually allow<str<strong>on</strong>g>in</str<strong>on</strong>g>g the people of FortChipewyan to die – they knew exactly what the effects of thisproject would do. This is a form of war where a nati<strong>on</strong> allowspeople with<str<strong>on</strong>g>in</str<strong>on</strong>g> their country to die for the sake of profit; it isc<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ued genocide of the First Nati<strong>on</strong>s people of Canada.From exterm<str<strong>on</strong>g>in</str<strong>on</strong>g>ati<strong>on</strong> programs that wiped out the now ext<str<strong>on</strong>g>in</str<strong>on</strong>g>ctBeothucks First Nati<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> the prov<str<strong>on</strong>g>in</str<strong>on</strong>g>ce of Newfoundl<strong>and</strong>,to forc<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>and</strong> steal<str<strong>on</strong>g>in</str<strong>on</strong>g>g First Nati<strong>on</strong>s children to be raised<str<strong>on</strong>g>in</str<strong>on</strong>g> residential schools to demoralize <strong>and</strong> break the spirit ofthe First Nati<strong>on</strong>s people. There is also the biological warfarethat’s started <str<strong>on</strong>g>in</str<strong>on</strong>g> the 1800’s with the <str<strong>on</strong>g>in</str<strong>on</strong>g>troducti<strong>on</strong> of small pox<str<strong>on</strong>g>in</str<strong>on</strong>g>fected blankets <strong>and</strong> the war c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ues today by yet aga<str<strong>on</strong>g>in</str<strong>on</strong>g>the government allow<str<strong>on</strong>g>in</str<strong>on</strong>g>g rare cancer to kill the people of FortChipewyan.So s<str<strong>on</strong>g>in</str<strong>on</strong>g>ce I moved I have become an advocate, speak<str<strong>on</strong>g>in</str<strong>on</strong>g>g outaga<str<strong>on</strong>g>in</str<strong>on</strong>g>st the <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry at every opportunity I receive. I willc<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ue until I can no l<strong>on</strong>ger c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ue <strong>on</strong>, then others willtake my place <strong>and</strong> ensure the fight c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ues aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st big oil<strong>and</strong> corporotocracy.Mike Mercredi is a member of the community ofFort Chipewyan, where he was raised. He wasborn <str<strong>on</strong>g>in</str<strong>on</strong>g> Fort McMurray <strong>and</strong> used to work <str<strong>on</strong>g>in</str<strong>on</strong>g> thetar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry.25
CASESTUDIES27
CASEThis secti<strong>on</strong> exam<str<strong>on</strong>g>in</str<strong>on</strong>g>es <str<strong>on</strong>g>in</str<strong>on</strong>g> more detail three companies withwhom f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g deals have been made with <strong>UK</strong> <strong>banks</strong>, allof which <str<strong>on</strong>g>in</str<strong>on</strong>g>volve the Royal Bank of Scotl<strong>and</strong>. The companieshave been chosen to cover a range of projects from oilmajor’s extracti<strong>on</strong> projects to pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es.C<strong>on</strong>ocoPhillipsSTUDIES<strong>RBS</strong> has underwritten $8 billi<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> loans <strong>and</strong> corporatef<str<strong>on</strong>g>in</str<strong>on</strong>g>ance over the past three years, which <str<strong>on</strong>g>in</str<strong>on</strong>g>cludes sixdeals s<str<strong>on</strong>g>in</str<strong>on</strong>g>ce, <strong>and</strong> two previous to, the recapitalisati<strong>on</strong>.ForBarclays the figure is more than $2.5 billi<strong>on</strong>; HSBC has notf<str<strong>on</strong>g>in</str<strong>on</strong>g>anced the company over this period. 46 In January 2010,C<strong>on</strong>ocoPhillips announced plans to exp<strong>and</strong> their Albertantar s<strong>and</strong>s operati<strong>on</strong>s, mov<str<strong>on</strong>g>in</str<strong>on</strong>g>g from produc<str<strong>on</strong>g>in</str<strong>on</strong>g>g 27,000 barrelsof bitumen per day to 110,000. 47 They are positi<strong>on</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>gthemselves to become “a lead<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> situ producer <str<strong>on</strong>g>in</str<strong>on</strong>g> theAthabasca oil s<strong>and</strong>s regi<strong>on</strong>, with more than a milli<strong>on</strong> netacres of leasehold<str<strong>on</strong>g>in</str<strong>on</strong>g>gs.” 48Although the company advertises a commitment tosusta<str<strong>on</strong>g>in</str<strong>on</strong>g>able development, ethics, h<strong>on</strong>esty <strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>tegrity <strong>on</strong>their website, 49 they have <str<strong>on</strong>g>in</str<strong>on</strong>g> recent m<strong>on</strong>ths been work<str<strong>on</strong>g>in</str<strong>on</strong>g>gal<strong>on</strong>gside several organisati<strong>on</strong>s that have sought tounderm<str<strong>on</strong>g>in</str<strong>on</strong>g>e climate legislati<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the US. C<strong>on</strong>ocoPhillipsis a member of the American Petroleum Institute, 50 whoseimitati<strong>on</strong> ‘grassroots citizens campaign’ <str<strong>on</strong>g>in</str<strong>on</strong>g> Autumn 2009aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st the US climate bill was labelled “devious <strong>and</strong>28
dish<strong>on</strong>est” by The Guardian. 51 The company is also anaffiliate of the C<strong>on</strong>sumer Energy Alliance, 52 which al<strong>on</strong>gsidethe Nati<strong>on</strong>al Petrochemical & Ref<str<strong>on</strong>g>in</str<strong>on</strong>g>ers Associati<strong>on</strong> iscurrently try<str<strong>on</strong>g>in</str<strong>on</strong>g>g to sue the state of California over their LowCarb<strong>on</strong> Fuel St<strong>and</strong>ard <str<strong>on</strong>g>in</str<strong>on</strong>g> part because it excludes tar s<strong>and</strong>s<strong>and</strong> tar shale oil from the st<strong>and</strong>ard. 53The Beaver Lake Cree Nati<strong>on</strong> is currently tak<str<strong>on</strong>g>in</str<strong>on</strong>g>g legal acti<strong>on</strong>claim<str<strong>on</strong>g>in</str<strong>on</strong>g>g that the approval of oil <strong>and</strong> gas developments,<str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g C<strong>on</strong>ocoPhillips’ operati<strong>on</strong>s, <str<strong>on</strong>g>in</str<strong>on</strong>g>fr<str<strong>on</strong>g>in</str<strong>on</strong>g>ges up<strong>on</strong> theBeaver Lake’s Treaty rights. 54 The company’s c<strong>on</strong>troversieswith regards to Indigenous Peoples is not limited to Canada.It is currently the lead<str<strong>on</strong>g>in</str<strong>on</strong>g>g holder of explorati<strong>on</strong> acreage <str<strong>on</strong>g>in</str<strong>on</strong>g>Peruvian Amaz<strong>on</strong> with over 10.5 milli<strong>on</strong> acres. Many tribespeoplelive with<str<strong>on</strong>g>in</str<strong>on</strong>g> this area, <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g some liv<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> voluntaryisolati<strong>on</strong>. C<strong>on</strong>ocoPhillips has been accused of risk<str<strong>on</strong>g>in</str<strong>on</strong>g>g futurec<strong>on</strong>flict by fail<str<strong>on</strong>g>in</str<strong>on</strong>g>g to guarantee that the Free Prior <strong>and</strong>Informed C<strong>on</strong>sent of these people will be respected. 55The expansi<strong>on</strong> plans of C<strong>on</strong>ocoPhillips <str<strong>on</strong>g>in</str<strong>on</strong>g>clude <str<strong>on</strong>g>in</str<strong>on</strong>g>creas<str<strong>on</strong>g>in</str<strong>on</strong>g>gtheir ref<str<strong>on</strong>g>in</str<strong>on</strong>g>ery at their facility <str<strong>on</strong>g>in</str<strong>on</strong>g> P<strong>on</strong>ca, Oklahoma <strong>and</strong> twoother ref<str<strong>on</strong>g>in</str<strong>on</strong>g>eries <str<strong>on</strong>g>in</str<strong>on</strong>g> the US by the end of 2013 <str<strong>on</strong>g>in</str<strong>on</strong>g> order to beable to process the tar s<strong>and</strong>s-derived crude be<str<strong>on</strong>g>in</str<strong>on</strong>g>g pipeddown from Canada. The P<strong>on</strong>ca facility has existed forthe last 50 years <strong>on</strong> the l<strong>and</strong> of the P<strong>on</strong>ca Nati<strong>on</strong>. CaseyCamp-Hornik, a member of the P<strong>on</strong>ca Nati<strong>on</strong> who workswith the Coyote Creek Center for Envir<strong>on</strong>mental Justice,has expressed c<strong>on</strong>cern about the effects of <str<strong>on</strong>g>in</str<strong>on</strong>g>creas<str<strong>on</strong>g>in</str<strong>on</strong>g>g theref<str<strong>on</strong>g>in</str<strong>on</strong>g>ery’s output when her community is already suffer<str<strong>on</strong>g>in</str<strong>on</strong>g>gfrom the polluti<strong>on</strong> of the facility. In an <str<strong>on</strong>g>in</str<strong>on</strong>g>terview she saidthat, “we are saturated, we’re bey<strong>on</strong>d saturati<strong>on</strong>, with thepolluti<strong>on</strong> from that already. We have an extraord<str<strong>on</strong>g>in</str<strong>on</strong>g>arily highcancer rate, our groundwater is pois<strong>on</strong>ed, the air from theref<str<strong>on</strong>g>in</str<strong>on</strong>g>ery has toxic qualities to it <strong>and</strong> the earth itself, we’re notcapable of grow<str<strong>on</strong>g>in</str<strong>on</strong>g>g anyth<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong> it anymore.” 56C<strong>on</strong>ocoPhilips also part-owns Syncrude, a crude oil producerbased <str<strong>on</strong>g>in</str<strong>on</strong>g> Alberta, Canada. On the 28th April, 2008, a delay<str<strong>on</strong>g>in</str<strong>on</strong>g> the company’s bird-deterr<str<strong>on</strong>g>in</str<strong>on</strong>g>g sound cann<strong>on</strong>s 57 lead tothe death of 1606 ducks as they l<strong>and</strong>ed <strong>on</strong> Syncrude’s toxictail<str<strong>on</strong>g>in</str<strong>on</strong>g>g p<strong>on</strong>ds <strong>and</strong> sank under the weight of the heavy toxicwaste. 58 It is feared that these exp<strong>and</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>g tail<str<strong>on</strong>g>in</str<strong>on</strong>g>g p<strong>on</strong>ds areplaced too close to river systems. 59Enbridge<strong>RBS</strong> underwrote a loan to Enbridge worth $166.67 milli<strong>on</strong><str<strong>on</strong>g>in</str<strong>on</strong>g> December 2008; Barclays underwrote a loan of $200milli<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> April 2009; <strong>and</strong> HSBC underwrote $467 milli<strong>on</strong> ofcorporate f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance <str<strong>on</strong>g>in</str<strong>on</strong>g> March 2008 <strong>and</strong> May 2007. 60 Enbridgeoperates the world’s l<strong>on</strong>gest crude oil <strong>and</strong> petroleumproducts pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e system, transport<str<strong>on</strong>g>in</str<strong>on</strong>g>g approximately twothirdsof Canada’s crude oil, much of which is derived fromtar s<strong>and</strong>s. 61 They are exp<strong>and</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>g rapidly with four expansi<strong>on</strong>projects, which will result <str<strong>on</strong>g>in</str<strong>on</strong>g> an additi<strong>on</strong>al 851,600 barrelsper day of crude oil <strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>creased US access. 6229
C<strong>on</strong>troversially, Enbridge is apply<str<strong>on</strong>g>in</str<strong>on</strong>g>g for permissi<strong>on</strong> for itsNorthern Gateway pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e. This would be laid throughBritish Columbia, across more than 50 First Nati<strong>on</strong>’sterritories <strong>and</strong> prist<str<strong>on</strong>g>in</str<strong>on</strong>g>e ecosystems, through to Kitimat<strong>on</strong> the coast, open<str<strong>on</strong>g>in</str<strong>on</strong>g>g the Canadian tar s<strong>and</strong>s to Asianmarkets. 63 If oil from Canadian tar s<strong>and</strong>s is renderedunusable by legislati<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the USA or selected states <str<strong>on</strong>g>in</str<strong>on</strong>g> theUSA, Asian markets will be an important impetus to c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>uedevelopment <str<strong>on</strong>g>in</str<strong>on</strong>g> the area. 64 The planned port from where theoil would be exported is expected to service 225 tankers ayear, <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g some Very Large Crude Carriers (VLCCs) thathave a capacity of 2 milli<strong>on</strong> barrels of oil or more – almostdouble the capacity of the Exx<strong>on</strong> Valdez. 65There are 60 Indigenous communities liv<str<strong>on</strong>g>in</str<strong>on</strong>g>g al<strong>on</strong>g the route<strong>and</strong> <strong>on</strong> the coastl<str<strong>on</strong>g>in</str<strong>on</strong>g>e near the planned port – <strong>and</strong> they areall opposed, <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g the Gitga’at of Hartley Bay, a smallsettlement of just 160 people. Ha’eis Clare Hill, Eagle ClanChief-<str<strong>on</strong>g>in</str<strong>on</strong>g>-wait<str<strong>on</strong>g>in</str<strong>on</strong>g>g of the Gitga’at describes how Enbridge sentits President to c<strong>on</strong>sult with the community:“Enbridge came <str<strong>on</strong>g>in</str<strong>on</strong>g> with the argument that it would helpcreate jobs <str<strong>on</strong>g>in</str<strong>on</strong>g> Hartley Bay. We would be <strong>on</strong> call <strong>and</strong> tra<str<strong>on</strong>g>in</str<strong>on</strong>g>ed<str<strong>on</strong>g>in</str<strong>on</strong>g> case there’s a disaster. So we would be the garbage cleanuppeople! Of course, the people who cleaned up the Exx<strong>on</strong>Valdez spill are now sick <strong>and</strong> dy<str<strong>on</strong>g>in</str<strong>on</strong>g>g as a result… We had ourchiefs there, we had elders, <strong>and</strong> every<strong>on</strong>e who got up said‘no, we d<strong>on</strong>’t want this.’” 66A major c<strong>on</strong>cern is the risk of leakages <strong>and</strong> spills. Follow<str<strong>on</strong>g>in</str<strong>on</strong>g>ga 3,000 barrel leak <str<strong>on</strong>g>in</str<strong>on</strong>g> January 2010 <str<strong>on</strong>g>in</str<strong>on</strong>g> North Dakota 67c<strong>on</strong>cerns have been raised by envir<strong>on</strong>mental observersover the impact of spillages <strong>on</strong> wild salm<strong>on</strong> habitats 68 al<strong>on</strong>gthe proposed Northern Gateway pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e. Accord<str<strong>on</strong>g>in</str<strong>on</strong>g>g to aNorthern Gateway spokesman, Enbridge has 50 or 60 leaksa year, well above the <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry average, 69 but vary<str<strong>on</strong>g>in</str<strong>on</strong>g>g fromhalf a barrel to, <str<strong>on</strong>g>in</str<strong>on</strong>g> this case, 3,000. 70A new report from the Pemb<str<strong>on</strong>g>in</str<strong>on</strong>g>a Institute also raises c<strong>on</strong>cernover the upstream impacts the pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e would br<str<strong>on</strong>g>in</str<strong>on</strong>g>g asa result of creat<str<strong>on</strong>g>in</str<strong>on</strong>g>g extra capacity. 71 They assert that thepipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e would br<str<strong>on</strong>g>in</str<strong>on</strong>g>g approximately a 30 per cent <str<strong>on</strong>g>in</str<strong>on</strong>g>crease<str<strong>on</strong>g>in</str<strong>on</strong>g> producti<strong>on</strong>, boost<str<strong>on</strong>g>in</str<strong>on</strong>g>g Alberta’s annual greenhouse gasemissi<strong>on</strong>s by 6.5 milli<strong>on</strong> t<strong>on</strong>nes 72 as well as the associatedenvir<strong>on</strong>mental <strong>and</strong> social impacts tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>duce alreadyraised <str<strong>on</strong>g>in</str<strong>on</strong>g> this report.“”The Wet’suwet’en want to protect our l<strong>and</strong>, we wantto protect it from any type of polluti<strong>on</strong>, any type of<str<strong>on</strong>g>in</str<strong>on</strong>g>dustrial development, because we need to makesure the l<strong>and</strong>s are available for our children <strong>and</strong> ourunborn children.– Toghestiy (Warner Naziel), hereditary chief of theFireweed Clan for the Wet’suwet’en Nati<strong>on</strong> who arefight<str<strong>on</strong>g>in</str<strong>on</strong>g>g the Enbridge pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e. 7330
Shell<strong>RBS</strong> underwrote two amounts of corporate debt worth $192milli<strong>on</strong> each to Royal Dutch Shell <str<strong>on</strong>g>in</str<strong>on</strong>g> February <strong>and</strong> March2007. HSBC also underwrote the March 2007 debt, as wellas underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g with Barclays $2.2 billi<strong>on</strong> of corporate debt<str<strong>on</strong>g>in</str<strong>on</strong>g> May 2009. Barclays underwrote a further $1.375 billi<strong>on</strong> ofcorporate debt to Shell <str<strong>on</strong>g>in</str<strong>on</strong>g> December 2008, as well as $1.25billi<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> March 2009. 74Shell owns 60%, a majority share, of the Athabasca Oil<strong>S<strong>and</strong>s</strong> Project. C<strong>on</strong>sist<str<strong>on</strong>g>in</str<strong>on</strong>g>g of the Muskeg River M<str<strong>on</strong>g>in</str<strong>on</strong>g>e locatednorth of Fort McMurray, <strong>and</strong> the Scotford Updgrader, besideShell’s ref<str<strong>on</strong>g>in</str<strong>on</strong>g>ery <str<strong>on</strong>g>in</str<strong>on</strong>g> Fort Saskatchewan, the Project’s websitedescribes it as, “currently <strong>on</strong>e of the largest c<strong>on</strong>structi<strong>on</strong>projects <strong>on</strong> the planet.” 75 The current producti<strong>on</strong> capacity ofthis project is 155,000 barrels per day of crude oil, althoughapproval has already been granted for an expansi<strong>on</strong> thatwould <str<strong>on</strong>g>in</str<strong>on</strong>g>crease producti<strong>on</strong> by 100,000 barrels per day. 76Although tar s<strong>and</strong>s currently account for 2% of Shell’s totaloil <strong>and</strong> gas producti<strong>on</strong>, analysis of its resources show that30% of their Total Resources are tied up <str<strong>on</strong>g>in</str<strong>on</strong>g> the Canadiantar s<strong>and</strong>s. 77 This significantly high percentage of reserveillum<str<strong>on</strong>g>in</str<strong>on</strong>g>ates the extent to which the tar s<strong>and</strong>s factor <str<strong>on</strong>g>in</str<strong>on</strong>g>toShell’s future. No other oil major has staked its future <strong>on</strong> tars<strong>and</strong>s to such an extent. 78In 2009, Shell ab<strong>and</strong><strong>on</strong>ed written agreements withthe Oil <strong>S<strong>and</strong>s</strong> Envir<strong>on</strong>mental Coaliti<strong>on</strong>, to significantlyreduce greenhouse gas polluti<strong>on</strong> of expansi<strong>on</strong> projects.These agreements had helped <str<strong>on</strong>g>in</str<strong>on</strong>g>form the approval of theexpansi<strong>on</strong> projects <str<strong>on</strong>g>in</str<strong>on</strong>g> 2004 <strong>and</strong> 2006 <strong>and</strong> were supposed tohave prevented an estimated 900,000 t<strong>on</strong>nes of carb<strong>on</strong> frombe<str<strong>on</strong>g>in</str<strong>on</strong>g>g emitted. 79Shell have a l<strong>on</strong>g history of envir<strong>on</strong>mental <strong>and</strong> humanrights c<strong>on</strong>troversies <str<strong>on</strong>g>in</str<strong>on</strong>g> their operati<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> the Niger Delta.In June 2009, they made an out of court settlement worth$15.5 milli<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> was accused of hav<str<strong>on</strong>g>in</str<strong>on</strong>g>g collaborated <str<strong>on</strong>g>in</str<strong>on</strong>g> theexecuti<strong>on</strong> of the writer Ken Saro-Wiwa <strong>and</strong> eight otheranti-Shell activists. 80 A court case aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st Shell will beresumed <str<strong>on</strong>g>in</str<strong>on</strong>g> Summer 2010 <str<strong>on</strong>g>in</str<strong>on</strong>g> the Netherl<strong>and</strong>s brought byfour Nigerians, <str<strong>on</strong>g>in</str<strong>on</strong>g> c<strong>on</strong>juncti<strong>on</strong> with Friends of the EarthNetherl<strong>and</strong>s, who say they lost their livelihoods when oilfrom leak<str<strong>on</strong>g>in</str<strong>on</strong>g>g Shell pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es c<strong>on</strong>tam<str<strong>on</strong>g>in</str<strong>on</strong>g>ated their farml<strong>and</strong><strong>and</strong> fish<str<strong>on</strong>g>in</str<strong>on</strong>g>g p<strong>on</strong>ds. 81Shell are currently fac<str<strong>on</strong>g>in</str<strong>on</strong>g>g shareholder questi<strong>on</strong>s over its tars<strong>and</strong>s operati<strong>on</strong>s. A number of shareholders, coord<str<strong>on</strong>g>in</str<strong>on</strong>g>ated byFairPensi<strong>on</strong>s have filed a moti<strong>on</strong> to Shell’s 2010 AGM, rais<str<strong>on</strong>g>in</str<strong>on</strong>g>gc<strong>on</strong>cerns of the profitability, envir<strong>on</strong>mental c<strong>on</strong>sequences,<strong>and</strong> community impact of its activities <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>sextracti<strong>on</strong>. 8231
<strong>Tar</strong> <strong>S<strong>and</strong>s</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> other parts of the world: JordanJordan is believed to hold over forty billi<strong>on</strong> t<strong>on</strong>s of tarshale, 83 a form of tar s<strong>and</strong>s dist<str<strong>on</strong>g>in</str<strong>on</strong>g>ct from those found<str<strong>on</strong>g>in</str<strong>on</strong>g> Canada. Known locally as “the rock that burns”, tarshale refers to rocks that will give up synthetic crudewhen heated to extreme temperatures. Shell hascommitted to spend $540 milli<strong>on</strong> dollars explor<str<strong>on</strong>g>in</str<strong>on</strong>g>g22,500 square kilometres 84 – an area cover<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong>equarter of the country <strong>and</strong> larger than Wales <strong>and</strong> seesits Jordan venture as a l<strong>on</strong>g-term <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment to buildup future reserves. 85 Analysts expect that extracti<strong>on</strong>would start around 2035, <strong>and</strong> c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ue until 2080. 86Shell has announced that it will <str<strong>on</strong>g>in</str<strong>on</strong>g>troduce itsproprietary <str<strong>on</strong>g>in</str<strong>on</strong>g> situ c<strong>on</strong>versi<strong>on</strong> process developed <str<strong>on</strong>g>in</str<strong>on</strong>g>Canada 87 , which boils the oil out of the ground by<str<strong>on</strong>g>in</str<strong>on</strong>g>ject<str<strong>on</strong>g>in</str<strong>on</strong>g>g hot steam <str<strong>on</strong>g>in</str<strong>on</strong>g>to deep holes. This means steamgenerat<str<strong>on</strong>g>in</str<strong>on</strong>g>gplants, many oil wells <strong>and</strong> extensive gas<strong>and</strong> syncrude pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es will have to be built.A chr<strong>on</strong>ic lack of water resources <str<strong>on</strong>g>in</str<strong>on</strong>g> Jordan poses anobvious challenge to Shell’s plans. Jordan is the fourthpoorest country <str<strong>on</strong>g>in</str<strong>on</strong>g> the world <str<strong>on</strong>g>in</str<strong>on</strong>g> terms of water 88 , withannual per capita supply of 200 cubic metres perpers<strong>on</strong> 89 – compared to a world average of 8,900 cubicmetres. 90 Current use of n<strong>on</strong>-renewable fossilizeddeep-water aquifers comb<str<strong>on</strong>g>in</str<strong>on</strong>g>ed with a burge<strong>on</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>gpopulati<strong>on</strong> means that by 2025, water supply perpers<strong>on</strong> is expected to halve. 91Generat<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong>e barrel of oil from tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> Canadauses between 1 <strong>and</strong> 5.7 barrels of water. 92 Shell’s planswill need 50-500 milli<strong>on</strong> t<strong>on</strong>nes of water, every year –water that Jordan just does not have. A possible watersource will be the c<strong>on</strong>troversial Red Sea-Dead SeaCanal. Heavily criticised by envir<strong>on</strong>mental campaigners<str<strong>on</strong>g>in</str<strong>on</strong>g> Amman, this proposed $10 billi<strong>on</strong> project is <str<strong>on</strong>g>in</str<strong>on</strong>g>tendedto pump seawater 200 kilometres from the Red Seato the Dead Sea, where it will be used to cool nuclearreactors. 93 Local opp<strong>on</strong>ents have warned of damage toprotected coral reefs <str<strong>on</strong>g>in</str<strong>on</strong>g> the Red Sea <strong>and</strong> wider impacts<strong>on</strong> the Jordan Valley. 9432
Clayt<strong>on</strong> Thomas-Muller – <strong>Tar</strong> s<strong>and</strong>s <strong>and</strong> treaty rightsThe tar s<strong>and</strong>s is the biggest <strong>and</strong> most destructive project <str<strong>on</strong>g>in</str<strong>on</strong>g>the history of mank<str<strong>on</strong>g>in</str<strong>on</strong>g>d. Never before have the words “Welive at ground zero” from fr<strong>on</strong>tl<str<strong>on</strong>g>in</str<strong>on</strong>g>e Indigenous Peoples liv<str<strong>on</strong>g>in</str<strong>on</strong>g>g<str<strong>on</strong>g>in</str<strong>on</strong>g> Fort Chipewyan rang more true. Globally Canada is be<str<strong>on</strong>g>in</str<strong>on</strong>g>glooked at as a best practice for heavy oil development <strong>and</strong>the technology be<str<strong>on</strong>g>in</str<strong>on</strong>g>g ref<str<strong>on</strong>g>in</str<strong>on</strong>g>ed <str<strong>on</strong>g>in</str<strong>on</strong>g> the Athabasca <strong>Tar</strong> <strong>S<strong>and</strong>s</strong>regi<strong>on</strong> will be used as far as the deserts of Jordan, theRepublic of C<strong>on</strong>go <strong>and</strong> Venezuela.The situati<strong>on</strong> play<str<strong>on</strong>g>in</str<strong>on</strong>g>g out <str<strong>on</strong>g>in</str<strong>on</strong>g> downstream communitieslike Fort Chipewyan, Alberta, is <strong>on</strong>e of the worst cases ofenvir<strong>on</strong>mental racism globally. Envir<strong>on</strong>mental racism <str<strong>on</strong>g>in</str<strong>on</strong>g>this c<strong>on</strong>text, is the failure of col<strong>on</strong>ial government programsto adequately c<strong>on</strong>sult with or address envir<strong>on</strong>mentalprotecti<strong>on</strong>, natural resource c<strong>on</strong>servati<strong>on</strong>, envir<strong>on</strong>mentalhealth, <strong>and</strong> sacred/historical site issues affect<str<strong>on</strong>g>in</str<strong>on</strong>g>g traditi<strong>on</strong>alIndigenous l<strong>and</strong>s <strong>and</strong> its Indigenous peoples.For many years the leadership <str<strong>on</strong>g>in</str<strong>on</strong>g> Fort Chipewyan have beencall<str<strong>on</strong>g>in</str<strong>on</strong>g>g for a government-funded basel<str<strong>on</strong>g>in</str<strong>on</strong>g>e health study toc<strong>on</strong>firm or disprove the communities’ c<strong>on</strong>cern about tars<strong>and</strong>s encroachment nearer to their l<strong>and</strong>s <strong>and</strong> the effect thisdevelopment is hav<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong> their health.Decades ago, the Alberta government enticed First Nati<strong>on</strong>scouncil leadership to lease their treaty reserve l<strong>and</strong>s to thetar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry as a means for ec<strong>on</strong>omic development<strong>and</strong> jobs. The tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry with the bless<str<strong>on</strong>g>in</str<strong>on</strong>g>gs of theprov<str<strong>on</strong>g>in</str<strong>on</strong>g>cial government are exp<strong>and</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>g even further, <strong>and</strong> FirstNati<strong>on</strong>s leadership <strong>and</strong> community members are feel<str<strong>on</strong>g>in</str<strong>on</strong>g>gpressured by Alberta, the federal government of Canada,<strong>and</strong> the <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry to support it. Many of the oil companies<str<strong>on</strong>g>in</str<strong>on</strong>g>volved have well funded public relati<strong>on</strong>s campaignscom<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g>to the First Nati<strong>on</strong> communities, schools, <strong>and</strong>senior citizen facilities campaign<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong> how tar s<strong>and</strong>expansi<strong>on</strong> would be good for the Dene, Cree <strong>and</strong> Métispeople.The First Nati<strong>on</strong>s <strong>and</strong> Métis liv<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the tar s<strong>and</strong>s regi<strong>on</strong>have been rais<str<strong>on</strong>g>in</str<strong>on</strong>g>g c<strong>on</strong>cerns about the impacts of tars<strong>and</strong>s development <strong>on</strong> their treaty <strong>and</strong> aborig<str<strong>on</strong>g>in</str<strong>on</strong>g>al rightsfor some years. More recently, Canadian, American <strong>and</strong>European campaigns aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st tar s<strong>and</strong>s development havebeen <str<strong>on</strong>g>in</str<strong>on</strong>g>itiated by both Indigenous <strong>and</strong> n<strong>on</strong>-Indigenousgroups <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g many envir<strong>on</strong>mental n<strong>on</strong>-governmentalorganizati<strong>on</strong>s, that have shifted to directly support<str<strong>on</strong>g>in</str<strong>on</strong>g>g thec<strong>on</strong>cerns of First Nati<strong>on</strong>s <strong>and</strong> Métis <str<strong>on</strong>g>in</str<strong>on</strong>g> the regi<strong>on</strong>.Many elected tribal leaders <str<strong>on</strong>g>in</str<strong>on</strong>g> the tar s<strong>and</strong>s are faced withthe real woes of try<str<strong>on</strong>g>in</str<strong>on</strong>g>g to provide ec<strong>on</strong>omic revenue streamsfor their communities while at the same time protect<str<strong>on</strong>g>in</str<strong>on</strong>g>g theirculture <strong>and</strong> ecological <str<strong>on</strong>g>in</str<strong>on</strong>g>tegrity of their traditi<strong>on</strong>al territories.What ends up play<str<strong>on</strong>g>in</str<strong>on</strong>g>g out more often than not is leadershipbe<str<strong>on</strong>g>in</str<strong>on</strong>g>g put <str<strong>on</strong>g>in</str<strong>on</strong>g> positi<strong>on</strong> where they have to choose between33
jobs for the people or the destructi<strong>on</strong> of their l<strong>and</strong>s, water,air <strong>and</strong> way of life.First Nati<strong>on</strong>/Indigenous communities must lead all work thatis challeng<str<strong>on</strong>g>in</str<strong>on</strong>g>g the Alberta tar s<strong>and</strong>s, as well as the broaderfossil fuel regime <str<strong>on</strong>g>in</str<strong>on</strong>g> Canada. The rati<strong>on</strong>ale beh<str<strong>on</strong>g>in</str<strong>on</strong>g>d this is thattheir Aborig<str<strong>on</strong>g>in</str<strong>on</strong>g>al title <strong>and</strong> treaty rights to large areas of l<strong>and</strong>throughout Canada supercedes the rights of the prov<str<strong>on</strong>g>in</str<strong>on</strong>g>ceof Alberta <strong>and</strong> the corporati<strong>on</strong>s operat<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the regi<strong>on</strong>. Itis a legal term that recognizes Aborig<str<strong>on</strong>g>in</str<strong>on</strong>g>al <str<strong>on</strong>g>in</str<strong>on</strong>g>terest <str<strong>on</strong>g>in</str<strong>on</strong>g> thel<strong>and</strong>. It is based <strong>on</strong> Aborig<str<strong>on</strong>g>in</str<strong>on</strong>g>al peoples’ l<strong>on</strong>g-st<strong>and</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>g use<strong>and</strong> occupancy of the l<strong>and</strong> as descendants of the orig<str<strong>on</strong>g>in</str<strong>on</strong>g>al<str<strong>on</strong>g>in</str<strong>on</strong>g>habitants of Canada.First Nati<strong>on</strong>s <strong>and</strong> Métis are not mere stakeholders orthe public, but are political <strong>and</strong> legal entities that haveAborig<str<strong>on</strong>g>in</str<strong>on</strong>g>al <strong>and</strong> treaty rights with Canada. The governmentof Canada <strong>and</strong> the courts underst<strong>and</strong> treaties betweenthe Crown <strong>and</strong> Aborig<str<strong>on</strong>g>in</str<strong>on</strong>g>al peoples. These treaty rights arespecial rights to l<strong>and</strong>s <strong>and</strong> entitlements that First Nati<strong>on</strong>people legally have as a result of these treaties.Dene, Cree <strong>and</strong> Métis communities <strong>and</strong> their leadershipmust look bey<strong>on</strong>d a dependence <strong>on</strong> a fossil fuel regime <strong>and</strong>be visi<strong>on</strong>aries <strong>and</strong> doers <strong>on</strong> support<str<strong>on</strong>g>in</str<strong>on</strong>g>g the development ofclean producti<strong>on</strong> <strong>and</strong> clean renewable energy with<str<strong>on</strong>g>in</str<strong>on</strong>g> theirl<strong>and</strong>s. There needs to be a clear strategy to motivate FirstNati<strong>on</strong>s leadership <strong>and</strong> their grassroots communities to getactive <str<strong>on</strong>g>in</str<strong>on</strong>g> energy <strong>and</strong> climate change policy, at the prov<str<strong>on</strong>g>in</str<strong>on</strong>g>cial,federal <strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>al levels.There is a need for Indigenous-led advocacy <strong>and</strong> tra<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>gfor First Nati<strong>on</strong>s <strong>on</strong> media strategies to be more visible <strong>and</strong>lead locally, nati<strong>on</strong>ally <strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>ally <str<strong>on</strong>g>in</str<strong>on</strong>g> anti tar s<strong>and</strong>scampaigns.There is a great need for organizati<strong>on</strong>s to prioritize bottomuporganiz<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>and</strong> create spaces for First Nati<strong>on</strong>s to speakfor themselves <strong>on</strong> this issue <strong>on</strong> a local, regi<strong>on</strong>al, nati<strong>on</strong>al<strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>al level.Accountability is a major issue as we move forward <str<strong>on</strong>g>in</str<strong>on</strong>g> termsof ensur<str<strong>on</strong>g>in</str<strong>on</strong>g>g that messag<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the US, Canada, <strong>and</strong> globallyare <str<strong>on</strong>g>in</str<strong>on</strong>g> sync <strong>and</strong> accountable to the local First Nati<strong>on</strong>s’positi<strong>on</strong> so that soluti<strong>on</strong>s be<str<strong>on</strong>g>in</str<strong>on</strong>g>g proposed do not furthermagnify social <strong>and</strong> cultural <str<strong>on</strong>g>in</str<strong>on</strong>g>equities faced by fr<strong>on</strong>tl<str<strong>on</strong>g>in</str<strong>on</strong>g>e <strong>and</strong>fencel<str<strong>on</strong>g>in</str<strong>on</strong>g>e communities.Many First Nati<strong>on</strong>s <strong>and</strong> Métis <str<strong>on</strong>g>in</str<strong>on</strong>g> the regi<strong>on</strong>s are dem<strong>and</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>gthe Alberta government halt tar s<strong>and</strong>s expansi<strong>on</strong>, addressenvir<strong>on</strong>mental damages, <str<strong>on</strong>g>in</str<strong>on</strong>g>itiate remediati<strong>on</strong>, <strong>and</strong> addresshuman health issues.There are also dem<strong>and</strong>s that the Canadian governmentrecognize Aborig<str<strong>on</strong>g>in</str<strong>on</strong>g>al Treaties 8 <strong>and</strong> 6, legally b<str<strong>on</strong>g>in</str<strong>on</strong>g>d<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>and</strong>c<strong>on</strong>stituti<strong>on</strong>ally protected agreements between the federal34
government <strong>and</strong> First Nati<strong>on</strong>s that def<str<strong>on</strong>g>in</str<strong>on</strong>g>e the unique l<strong>and</strong>,water <strong>and</strong> cultural rights of First Nati<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g the rightto hunt, fish <strong>and</strong> trap.There is an emerg<str<strong>on</strong>g>in</str<strong>on</strong>g>g political will of First Nati<strong>on</strong>s toexercise their sovereign rights by implement<str<strong>on</strong>g>in</str<strong>on</strong>g>g their ownenvir<strong>on</strong>mental <strong>and</strong> health <str<strong>on</strong>g>in</str<strong>on</strong>g>frastructure to regulate <strong>and</strong>enforce their own laws with<str<strong>on</strong>g>in</str<strong>on</strong>g> their l<strong>and</strong> <strong>and</strong> territory. Thishas been best expressed by the multitude of First Nati<strong>on</strong>slitigati<strong>on</strong>s be<str<strong>on</strong>g>in</str<strong>on</strong>g>g brought forward aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st the governmentof Alberta <strong>and</strong> the Federal government of Canada forfailure to uphold their obligati<strong>on</strong> to c<strong>on</strong>sult First Nati<strong>on</strong>sover potential impacts of the tar s<strong>and</strong>s operati<strong>on</strong>. We willc<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ue to see First Nati<strong>on</strong>s engage networks <str<strong>on</strong>g>in</str<strong>on</strong>g> NorthAmerica <strong>and</strong> abroad to jo<str<strong>on</strong>g>in</str<strong>on</strong>g> them <str<strong>on</strong>g>in</str<strong>on</strong>g> the fight for Energy <strong>and</strong>Climate Justice.Photo: Mike RussellClayt<strong>on</strong> Thomas-Muller, of the Mathais ColombCree Nati<strong>on</strong>, also known as Pukatawagan <str<strong>on</strong>g>in</str<strong>on</strong>g>Northern Manitoba, Canada, is an activist forIndigenous rights <strong>and</strong> envir<strong>on</strong>mental justice<strong>and</strong> tar s<strong>and</strong>s campaign organizer for theIndigenous Envir<strong>on</strong>mental Network. He worksacross Canada, Alaska <strong>and</strong> the lower 48 stateswith grassroots <str<strong>on</strong>g>in</str<strong>on</strong>g>digenous communities todefend aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st the sprawl<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g>frastructure that<str<strong>on</strong>g>in</str<strong>on</strong>g>cludes pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es, ref<str<strong>on</strong>g>in</str<strong>on</strong>g>eries <strong>and</strong> extracti<strong>on</strong>associated with the tar s<strong>and</strong>s.35
PUBLICMONEY37
P<strong>RBS</strong> is the <strong>UK</strong> bank that has received the biggest <str<strong>on</strong>g>in</str<strong>on</strong>g>jecti<strong>on</strong>of public m<strong>on</strong>ey <str<strong>on</strong>g>in</str<strong>on</strong>g> order to keep it afloat <str<strong>on</strong>g>in</str<strong>on</strong>g> the wake of thebank<str<strong>on</strong>g>in</str<strong>on</strong>g>g crisis <str<strong>on</strong>g>in</str<strong>on</strong>g> late 2008. Follow<str<strong>on</strong>g>in</str<strong>on</strong>g>g two separate roundsof recapitalisati<strong>on</strong>s <strong>and</strong> the launch of the Asset Protecti<strong>on</strong>Scheme <str<strong>on</strong>g>in</str<strong>on</strong>g> November 2009, the <strong>UK</strong> government owns 84% ofthe bank’s shares. 95UBLICMONEYCivil society groups have argued that the public ownershipof the bank means that there should be accountability forthe way that the public m<strong>on</strong>ey is be<str<strong>on</strong>g>in</str<strong>on</strong>g>g used by the bank.An <str<strong>on</strong>g>in</str<strong>on</strong>g>vestigati<strong>on</strong> by The Guardian showed that <str<strong>on</strong>g>in</str<strong>on</strong>g> the firstsix m<strong>on</strong>ths follow<str<strong>on</strong>g>in</str<strong>on</strong>g>g the bank’s <str<strong>on</strong>g>in</str<strong>on</strong>g>itial recapitalisati<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>October 2008, <strong>RBS</strong> had been <str<strong>on</strong>g>in</str<strong>on</strong>g>volved <str<strong>on</strong>g>in</str<strong>on</strong>g> loans worth nearly£10 billi<strong>on</strong> to oil, coal <strong>and</strong> gas companies – a quarter of thetotal amount of public funds put <str<strong>on</strong>g>in</str<strong>on</strong>g>to <strong>RBS</strong> at that po<str<strong>on</strong>g>in</str<strong>on</strong>g>t. 96On the first year anniversary of <strong>RBS</strong> becom<str<strong>on</strong>g>in</str<strong>on</strong>g>g majorityownedby the public, 30 public figures, <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g MPs, faithleaders<strong>and</strong> members of the bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess community, wrotean open letter to the Chancellor, Alastair Darl<str<strong>on</strong>g>in</str<strong>on</strong>g>g, call<str<strong>on</strong>g>in</str<strong>on</strong>g>g<strong>on</strong> the Treasury to take a more active role <str<strong>on</strong>g>in</str<strong>on</strong>g> manag<str<strong>on</strong>g>in</str<strong>on</strong>g>g thebank. The letter said that, “we believe that the Treasury hasfailed to push <strong>RBS</strong> <strong>and</strong> the other bailed-out <strong>banks</strong> towardssupport<str<strong>on</strong>g>in</str<strong>on</strong>g>g the <str<strong>on</strong>g>in</str<strong>on</strong>g>vestments our country needs. In do<str<strong>on</strong>g>in</str<strong>on</strong>g>gso, the government has effectively written a blank chequefor the rescued <strong>banks</strong> to f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance anyth<str<strong>on</strong>g>in</str<strong>on</strong>g>g from destructivefossil fuel companies driv<str<strong>on</strong>g>in</str<strong>on</strong>g>g climate change to hostile takeoversthat threaten <strong>UK</strong> jobs.” 9738
This perspective has also been echoed <str<strong>on</strong>g>in</str<strong>on</strong>g> reports thatcome from Parliament itself. In its pre-budget report of2009, the Parliamentary Envir<strong>on</strong>mental Audit Committeerecommended that, “the Treasury exam<str<strong>on</strong>g>in</str<strong>on</strong>g>e <strong>and</strong> report <strong>on</strong>how some form of envir<strong>on</strong>mental criteria for the <str<strong>on</strong>g>in</str<strong>on</strong>g>vestmentstrategies pursued by these <strong>banks</strong> might be imposed,<strong>and</strong> what impacts this might have <strong>on</strong> <strong>UK</strong> susta<str<strong>on</strong>g>in</str<strong>on</strong>g>abledevelopment objectives.” 98 The f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial services companyPricewaterhouseCoopers echoes this recommendati<strong>on</strong> thatthe government’s majority sharehold<str<strong>on</strong>g>in</str<strong>on</strong>g>g of <strong>RBS</strong> presentsa good “opportunity for reform” <strong>and</strong> thus management ofthese shares should take an approach “broader than a narrowf<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial goal. There should be focus <strong>on</strong> the wider social <strong>and</strong>ec<strong>on</strong>omic objectives.” 99 Despite this, the Treasury is adamantthat the shares will be managed “<strong>on</strong> a commercial basis” <strong>on</strong>behalf of the HM Treasury <strong>and</strong> <strong>UK</strong> taxpayers at “arms-length”by <strong>UK</strong> F<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial Investments (<strong>UK</strong>FI), a wholly governmentowned company set up for this purpose. 100In February 2010, <strong>UK</strong>FI f<str<strong>on</strong>g>in</str<strong>on</strong>g>ally published a susta<str<strong>on</strong>g>in</str<strong>on</strong>g>abilitypolicy. 101 Although acknowledg<str<strong>on</strong>g>in</str<strong>on</strong>g>g the need for such apolicy is a welcome first step, the policy itself falls shortof st<strong>and</strong>ard <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry best practice. In particular, it fails todescribe any m<strong>on</strong>itor<str<strong>on</strong>g>in</str<strong>on</strong>g>g processes, does not put <str<strong>on</strong>g>in</str<strong>on</strong>g> placeany positive strategic visi<strong>on</strong> for <strong>RBS</strong>, <strong>and</strong> fails to recognisethat the ma<str<strong>on</strong>g>in</str<strong>on</strong>g> shareholders <str<strong>on</strong>g>in</str<strong>on</strong>g> the bank – <strong>UK</strong> taxpayers –have <str<strong>on</strong>g>in</str<strong>on</strong>g>terests other than their f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial stake <str<strong>on</strong>g>in</str<strong>on</strong>g> the recoveryof <strong>RBS</strong>’ share value.“As <strong>RBS</strong> is an important provider of f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance to fossilfuel<strong>and</strong> carb<strong>on</strong>-<str<strong>on</strong>g>in</str<strong>on</strong>g>tensive <str<strong>on</strong>g>in</str<strong>on</strong>g>dustries, it, together withthe bus<str<strong>on</strong>g>in</str<strong>on</strong>g>esses <str<strong>on</strong>g>in</str<strong>on</strong>g> which it <str<strong>on</strong>g>in</str<strong>on</strong>g>vests, is attempt<str<strong>on</strong>g>in</str<strong>on</strong>g>g toexternalise the risks of climate change which, so<strong>on</strong>eror later, will fall <strong>on</strong> taxpayers. Those are the sametaxpayers who now own <strong>RBS</strong>, so those external costsare no l<strong>on</strong>ger carried by a third party. We can cutthe l<strong>on</strong>g-term cost to the taxpayer by act<str<strong>on</strong>g>in</str<strong>on</strong>g>g now <strong>on</strong>susta<str<strong>on</strong>g>in</str<strong>on</strong>g>ability. That is the important message.”– Andrew Smith MP, dur<str<strong>on</strong>g>in</str<strong>on</strong>g>g a Parliamentarydebate <strong>on</strong> bank<str<strong>on</strong>g>in</str<strong>on</strong>g>g reform. 102The Treasury ma<str<strong>on</strong>g>in</str<strong>on</strong>g>ta<str<strong>on</strong>g>in</str<strong>on</strong>g>s that any sort of <str<strong>on</strong>g>in</str<strong>on</strong>g>terventi<strong>on</strong> wouldjeopardize the share price of <strong>RBS</strong> <strong>and</strong> would dim<str<strong>on</strong>g>in</str<strong>on</strong>g>ishthe shareholder return of the <strong>UK</strong> taxpayer. There are twoarguments that expose how this reas<strong>on</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>g does not st<strong>and</strong>up bey<strong>on</strong>d the most short-termist perspective. The firstis that by c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>u<str<strong>on</strong>g>in</str<strong>on</strong>g>g to pour m<strong>on</strong>ey <str<strong>on</strong>g>in</str<strong>on</strong>g>to new fossil fuel<str<strong>on</strong>g>in</str<strong>on</strong>g>vestments, we are committ<str<strong>on</strong>g>in</str<strong>on</strong>g>g the world, not just the<strong>UK</strong>, to <str<strong>on</strong>g>in</str<strong>on</strong>g>frastructure that will be resp<strong>on</strong>sible for decadesof commensurate carb<strong>on</strong> emissi<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>creases. As The SternReview c<strong>on</strong>v<str<strong>on</strong>g>in</str<strong>on</strong>g>c<str<strong>on</strong>g>in</str<strong>on</strong>g>gly showed, the l<strong>on</strong>ger that we delay thenecessary changes we need to make to our societies <strong>and</strong>our ec<strong>on</strong>omies <str<strong>on</strong>g>in</str<strong>on</strong>g> the low-carb<strong>on</strong> transiti<strong>on</strong>, the higherthe annual percentage of GDP that will end up be<str<strong>on</strong>g>in</str<strong>on</strong>g>g paid<str<strong>on</strong>g>in</str<strong>on</strong>g> order to adapt to the c<strong>on</strong>sequences of a destabilisedclimate. The <str<strong>on</strong>g>in</str<strong>on</strong>g>terests of the taxpayer are better served by39
“In the l<strong>on</strong>g term, any oil company that believes itcan c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ue to externalise envir<strong>on</strong>mental costs,especially carb<strong>on</strong>, to society at large will havesignificant difficulty. Carb<strong>on</strong> caps are go<str<strong>on</strong>g>in</str<strong>on</strong>g>g to be areality <strong>and</strong> at the moment carb<strong>on</strong> capture <strong>and</strong>storage does not look cost effective or eventechnically feasible at the scale necessary.”– Marc Brammer, the Head of Bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess Developmentfor Europe at Risk Metrics Group. 103try<str<strong>on</strong>g>in</str<strong>on</strong>g>g to avoid the l<strong>on</strong>ger-term c<strong>on</strong>sequences of failure tore<str<strong>on</strong>g>in</str<strong>on</strong>g> <str<strong>on</strong>g>in</str<strong>on</strong>g> the worst excesses of runaway climate change ratherthan by simply go<str<strong>on</strong>g>in</str<strong>on</strong>g>g for ‘a quick buck’ by try<str<strong>on</strong>g>in</str<strong>on</strong>g>g to boostthe share price by <str<strong>on</strong>g>in</str<strong>on</strong>g>vest<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> projects <strong>and</strong> companies thatmight yield short-term profits.The sec<strong>on</strong>d argument aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st the Treasury’s n<strong>on</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>terventi<strong>on</strong>istpositi<strong>on</strong> is that while <strong>banks</strong> like <strong>RBS</strong> canappear to be <str<strong>on</strong>g>in</str<strong>on</strong>g>stituti<strong>on</strong>ally locked <str<strong>on</strong>g>in</str<strong>on</strong>g>to ma<str<strong>on</strong>g>in</str<strong>on</strong>g>ta<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g an<str<strong>on</strong>g>in</str<strong>on</strong>g>vestment portfolio of <strong>on</strong>go<str<strong>on</strong>g>in</str<strong>on</strong>g>g fossil fuel f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance, thereis a grow<str<strong>on</strong>g>in</str<strong>on</strong>g>g body of analysis that ma<str<strong>on</strong>g>in</str<strong>on</strong>g>ta<str<strong>on</strong>g>in</str<strong>on</strong>g>s that thesecarb<strong>on</strong>-<str<strong>on</strong>g>in</str<strong>on</strong>g>tensive <str<strong>on</strong>g>in</str<strong>on</strong>g>vestments could turn out to be a sourceof f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial risk rather than return to the taxpayer. S<str<strong>on</strong>g>in</str<strong>on</strong>g>cereceiv<str<strong>on</strong>g>in</str<strong>on</strong>g>g public funds, <strong>RBS</strong> has entered a new period <str<strong>on</strong>g>in</str<strong>on</strong>g>which the risks <strong>and</strong> objectives associated with its <str<strong>on</strong>g>in</str<strong>on</strong>g>vestmentdecisi<strong>on</strong>s must be calculated differently.In a report published <str<strong>on</strong>g>in</str<strong>on</strong>g> 2009, <str<strong>on</strong>g>in</str<strong>on</strong>g>surance company SwissRe has predicted that we will see a sharp rise <str<strong>on</strong>g>in</str<strong>on</strong>g> <str<strong>on</strong>g>in</str<strong>on</strong>g>stancesof litigati<strong>on</strong> result<str<strong>on</strong>g>in</str<strong>on</strong>g>g from climate change, a phenomen<strong>on</strong>that caused many companies <str<strong>on</strong>g>in</str<strong>on</strong>g> the asbestos <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry tofile for bankruptcy when faced with similar legal challenges.The report predicts that, “climate change-related liabilitywill develop more quickly than asbestos-related claims <strong>and</strong>believe the frequency <strong>and</strong> susta<str<strong>on</strong>g>in</str<strong>on</strong>g>ability of climate changerelatedlitigati<strong>on</strong> could become a significant issue with<str<strong>on</strong>g>in</str<strong>on</strong>g> thenext couple of years.” 104The f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial risks of tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>vestments have beens<str<strong>on</strong>g>in</str<strong>on</strong>g>gled out as be<str<strong>on</strong>g>in</str<strong>on</strong>g>g of particular c<strong>on</strong>cern. Reports likeShift<str<strong>on</strong>g>in</str<strong>on</strong>g>g s<strong>and</strong>s: How a chang<str<strong>on</strong>g>in</str<strong>on</strong>g>g ec<strong>on</strong>omy could bury thetar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry have outl<str<strong>on</strong>g>in</str<strong>on</strong>g>ed how: “Internati<strong>on</strong>al OilCompanies face significant challenges to their currentbus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess plans for oil producti<strong>on</strong>. While risk is noth<str<strong>on</strong>g>in</str<strong>on</strong>g>gnew to the oil <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry, the k<str<strong>on</strong>g>in</str<strong>on</strong>g>d of structural change be<str<strong>on</strong>g>in</str<strong>on</strong>g>gsignalled today is unprecedented.” 105One of the challenges to tar s<strong>and</strong>s is that there is a trend<str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>ally to develop low carb<strong>on</strong> fuel st<strong>and</strong>ards (suchas the Fuel Quality Directive <str<strong>on</strong>g>in</str<strong>on</strong>g> the EU <strong>and</strong> the Low Carb<strong>on</strong>Fuel St<strong>and</strong>ard <str<strong>on</strong>g>in</str<strong>on</strong>g> California 106 ), which would prohibit fuelswith lifecycle CO 2emissi<strong>on</strong>s ‘well to wheel’ greater thanthose from c<strong>on</strong>venti<strong>on</strong>al fuels. The successful developmentof these st<strong>and</strong>ards could have an enormous impact <str<strong>on</strong>g>in</str<strong>on</strong>g>restrict<str<strong>on</strong>g>in</str<strong>on</strong>g>g the access of companies engaged <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s40
to their primary markets. The potential threat of this is sogreat to the oil companies c<strong>on</strong>cerned that the Nati<strong>on</strong>alPetrochemical & Ref<str<strong>on</strong>g>in</str<strong>on</strong>g>ers Associati<strong>on</strong> are currently su<str<strong>on</strong>g>in</str<strong>on</strong>g>g theState of California over the potential exclusi<strong>on</strong> of tar s<strong>and</strong>sderived fuels. 107<strong>RBS</strong> should now be exit<str<strong>on</strong>g>in</str<strong>on</strong>g>g its <str<strong>on</strong>g>in</str<strong>on</strong>g>vestments <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s <strong>and</strong> rechannell<str<strong>on</strong>g>in</str<strong>on</strong>g>gthem <str<strong>on</strong>g>in</str<strong>on</strong>g>to projects that are <str<strong>on</strong>g>in</str<strong>on</strong>g> l<str<strong>on</strong>g>in</str<strong>on</strong>g>e with the widerpublic <str<strong>on</strong>g>in</str<strong>on</strong>g>terest, such as renewable energy. There exists aunique opportunity for government to utilise its sharehold<str<strong>on</strong>g>in</str<strong>on</strong>g>gstowards tackl<str<strong>on</strong>g>in</str<strong>on</strong>g>g climate change, an issue firmly <str<strong>on</strong>g>in</str<strong>on</strong>g> the public<str<strong>on</strong>g>in</str<strong>on</strong>g>terest. Invest<str<strong>on</strong>g>in</str<strong>on</strong>g>g public funds <str<strong>on</strong>g>in</str<strong>on</strong>g>to projects such as tar s<strong>and</strong>sis antithetical to this end. As Andrew Smith MP has argued,“we need to questi<strong>on</strong> very seriously whether, at a time whenwe rightly voice the priority that must be given to combat<str<strong>on</strong>g>in</str<strong>on</strong>g>gclimate change, those are the <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment priorities that publicfunds should be underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g.” 108S<str<strong>on</strong>g>in</str<strong>on</strong>g>ce the <str<strong>on</strong>g>in</str<strong>on</strong>g>itial recapitalisati<strong>on</strong> took place <str<strong>on</strong>g>in</str<strong>on</strong>g> October2008, <strong>RBS</strong> has underwritten corporate debt <strong>and</strong> equityworth nearly $2.5 billi<strong>on</strong> with tar s<strong>and</strong>s related companies.This use of public m<strong>on</strong>ey is counter to grow<str<strong>on</strong>g>in</str<strong>on</strong>g>g publicexpectati<strong>on</strong>s <strong>and</strong> political dem<strong>and</strong>s that <strong>RBS</strong> operate to adifferent st<strong>and</strong>ard than simply the pursuit of a bottom l<str<strong>on</strong>g>in</str<strong>on</strong>g>eagenda.Banks <strong>and</strong> their resp<strong>on</strong>se to climate changeWhile all <strong>banks</strong> have publicly acknowledged theimportance of address<str<strong>on</strong>g>in</str<strong>on</strong>g>g climate change, there is awide disparity <str<strong>on</strong>g>in</str<strong>on</strong>g> the effectiveness of their resp<strong>on</strong>ses.While The Co-operative Bank has l<strong>on</strong>g had a policy notto f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance any fossil fuel project, 110 other <strong>banks</strong> havelimited their engagement to tak<str<strong>on</strong>g>in</str<strong>on</strong>g>g part <str<strong>on</strong>g>in</str<strong>on</strong>g> sign<str<strong>on</strong>g>in</str<strong>on</strong>g>g up tovoluntary, <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry-led <str<strong>on</strong>g>in</str<strong>on</strong>g>itiatives.Over the past seven years, a number of these <str<strong>on</strong>g>in</str<strong>on</strong>g>itiativeshave been established by groups of <strong>banks</strong>. Theyostensibly seek to m<strong>on</strong>itor, <str<strong>on</strong>g>in</str<strong>on</strong>g>fluence <strong>and</strong> lessen theharmful social <strong>and</strong> envir<strong>on</strong>mental impacts of theoperati<strong>on</strong>s of companies which the <strong>banks</strong> f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance.These st<strong>and</strong>ards <str<strong>on</strong>g>in</str<strong>on</strong>g>clude the Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples, towhich all three major <strong>UK</strong> <strong>banks</strong> with <str<strong>on</strong>g>in</str<strong>on</strong>g>vestments<str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s projects (<strong>RBS</strong>, HSBC <strong>and</strong> Barclays) aresignatories, <strong>and</strong> the Climate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples, which all threecommented <strong>on</strong>, <strong>and</strong> to which HSBC signed up. Thecase of tar s<strong>and</strong>s f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g offers a lens to c<strong>on</strong>sider theeffectiveness of guid<str<strong>on</strong>g>in</str<strong>on</strong>g>g pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples which are voluntary<strong>and</strong> unenforceable <str<strong>on</strong>g>in</str<strong>on</strong>g> the breach.A more detailed exam<str<strong>on</strong>g>in</str<strong>on</strong>g>ati<strong>on</strong> of the shortcom<str<strong>on</strong>g>in</str<strong>on</strong>g>gs ofboth the Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples <strong>and</strong> the Climate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciplescan be found <str<strong>on</strong>g>in</str<strong>on</strong>g> Appendix III.41
Case study: Pensi<strong>on</strong> funds & shareholder revoltsOil companies with operati<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> the Canadian tar s<strong>and</strong>s forma cornerst<strong>on</strong>e of the portfolios of <strong>UK</strong> pensi<strong>on</strong> funds. In 2009,BP <strong>and</strong> Shell al<strong>on</strong>e provided pensi<strong>on</strong> funds with a quarter of <strong>UK</strong>corporate dividends, offer<str<strong>on</strong>g>in</str<strong>on</strong>g>g a vital <str<strong>on</strong>g>in</str<strong>on</strong>g>come-generat<str<strong>on</strong>g>in</str<strong>on</strong>g>g lifel<str<strong>on</strong>g>in</str<strong>on</strong>g>eto these large <str<strong>on</strong>g>in</str<strong>on</strong>g>vestors. 120 Accord<str<strong>on</strong>g>in</str<strong>on</strong>g>g to Paul Taylor, CapitaRegistrar’s head of dividends: “Oil has fuelled the eng<str<strong>on</strong>g>in</str<strong>on</strong>g>e of <strong>UK</strong>dividends <str<strong>on</strong>g>in</str<strong>on</strong>g> the last two years. The <str<strong>on</strong>g>in</str<strong>on</strong>g>creas<str<strong>on</strong>g>in</str<strong>on</strong>g>g dom<str<strong>on</strong>g>in</str<strong>on</strong>g>ance ofoil companies has left <str<strong>on</strong>g>in</str<strong>on</strong>g>vestors highly dependent <strong>on</strong> a few bigstocks to provide them with an <str<strong>on</strong>g>in</str<strong>on</strong>g>come.” 121In essence the l<strong>on</strong>g-term health of <strong>UK</strong> pensi<strong>on</strong> funds <strong>and</strong> ofShell <strong>and</strong> BP are, currently, <str<strong>on</strong>g>in</str<strong>on</strong>g>extricably bound up together.Senior executives at the two oil majors may come <strong>and</strong> go butthe pensi<strong>on</strong> fund members of Brita<str<strong>on</strong>g>in</str<strong>on</strong>g> are <str<strong>on</strong>g>in</str<strong>on</strong>g> for the l<strong>on</strong>g haul.This means that failed <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment decisi<strong>on</strong>s made by BP <strong>and</strong>Shell will have a big impact <strong>on</strong> work<str<strong>on</strong>g>in</str<strong>on</strong>g>g people <str<strong>on</strong>g>in</str<strong>on</strong>g> the <strong>UK</strong> whoare sav<str<strong>on</strong>g>in</str<strong>on</strong>g>g for their retirement through a pensi<strong>on</strong> plan. Afterthe hit susta<str<strong>on</strong>g>in</str<strong>on</strong>g>ed by pensi<strong>on</strong> funds as a result of the collapse<strong>and</strong> near collapse <str<strong>on</strong>g>in</str<strong>on</strong>g> 2008 of prom<str<strong>on</strong>g>in</str<strong>on</strong>g>ent <strong>banks</strong> <strong>and</strong> f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancialcompanies which, like BP <strong>and</strong> Shell, were key stocks <str<strong>on</strong>g>in</str<strong>on</strong>g> theirportfolios, pensi<strong>on</strong> funds are today <str<strong>on</strong>g>in</str<strong>on</strong>g> far too delicate a positi<strong>on</strong>to be careless about risk management at the oil majors.It was partly with this delicate situati<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> m<str<strong>on</strong>g>in</str<strong>on</strong>g>d that <str<strong>on</strong>g>in</str<strong>on</strong>g>vestorscame together <str<strong>on</strong>g>in</str<strong>on</strong>g> late 2009 to file resoluti<strong>on</strong>s at BP <strong>and</strong> Shellwhich call up<strong>on</strong> the boards of both companies to present acomprehensive strategic justificati<strong>on</strong> of their allocati<strong>on</strong> ofcapital to Canadian tar s<strong>and</strong>s projects. <strong>Tar</strong> s<strong>and</strong>s not <strong>on</strong>ly posean almost unparalleled envir<strong>on</strong>mental risk to the world but,an <str<strong>on</strong>g>in</str<strong>on</strong>g>creas<str<strong>on</strong>g>in</str<strong>on</strong>g>g number of <str<strong>on</strong>g>in</str<strong>on</strong>g>stituti<strong>on</strong>al <str<strong>on</strong>g>in</str<strong>on</strong>g>vestors are c<strong>on</strong>cernedat the risk they pose to <str<strong>on</strong>g>in</str<strong>on</strong>g>vestor assets. Even with<str<strong>on</strong>g>in</str<strong>on</strong>g> the oil<str<strong>on</strong>g>in</str<strong>on</strong>g>dustry some prom<str<strong>on</strong>g>in</str<strong>on</strong>g>ent figures have doubted the goodsense of tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment. Lord Browne, CEO of BP from1995 to 2007, was <strong>on</strong>e of those. In 1999 the company soldalmost all its Canadian tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>terests <strong>and</strong> as recentlyas 2004 he declared that there were “t<strong>on</strong>s of opportunities”bey<strong>on</strong>d the sector. 122 His successor T<strong>on</strong>y Hayward reversedthis decisi<strong>on</strong> <strong>on</strong> his appo<str<strong>on</strong>g>in</str<strong>on</strong>g>tment as CEO <str<strong>on</strong>g>in</str<strong>on</strong>g> 2007. 123 Oil <str<strong>on</strong>g>in</str<strong>on</strong>g>2007 was hover<str<strong>on</strong>g>in</str<strong>on</strong>g>g at the $100 dollar per barrel level, aprice that appeared to make tar s<strong>and</strong>s a logical <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment.Nevertheless s<str<strong>on</strong>g>in</str<strong>on</strong>g>ce 2007 the world has moved <strong>on</strong> aga<str<strong>on</strong>g>in</str<strong>on</strong>g>, <strong>and</strong><str<strong>on</strong>g>in</str<strong>on</strong>g> ways which <strong>on</strong>ce more cast real doubt <strong>on</strong> the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancialprudence of heavy capital expenditure <str<strong>on</strong>g>in</str<strong>on</strong>g> the oil s<strong>and</strong>s.What has changed?“It’s very clear that <str<strong>on</strong>g>in</str<strong>on</strong>g> the mature markets of the West, thepeak for gasol<str<strong>on</strong>g>in</str<strong>on</strong>g>e c<strong>on</strong>sumpti<strong>on</strong> was <str<strong>on</strong>g>in</str<strong>on</strong>g> 2007. The <str<strong>on</strong>g>in</str<strong>on</strong>g>dustrywill not sell more gasol<str<strong>on</strong>g>in</str<strong>on</strong>g>e <str<strong>on</strong>g>in</str<strong>on</strong>g> either the US or Europe thanit did <str<strong>on</strong>g>in</str<strong>on</strong>g> 2007. Ever. As government regulati<strong>on</strong> <strong>and</strong> policydrives efficiency <str<strong>on</strong>g>in</str<strong>on</strong>g>to the transport fleet… it’s a challengefor companies like BP. It’s why our ref<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>and</strong> market<str<strong>on</strong>g>in</str<strong>on</strong>g>gbus<str<strong>on</strong>g>in</str<strong>on</strong>g>esses are so challenged right now because there’s alot of surplus capacity which is not go<str<strong>on</strong>g>in</str<strong>on</strong>g>g to go away” T<strong>on</strong>yHayward, Today Programme, 4 th February 2010.42
As Hayward himself put it so clearly <str<strong>on</strong>g>in</str<strong>on</strong>g> early 2010, theextraord<str<strong>on</strong>g>in</str<strong>on</strong>g>ary market c<strong>on</strong>diti<strong>on</strong>s which oil companiesenjoyed <str<strong>on</strong>g>in</str<strong>on</strong>g> 2007 when BP decided to move back <str<strong>on</strong>g>in</str<strong>on</strong>g>to theCanadian tar s<strong>and</strong>s, no l<strong>on</strong>ger exist <strong>and</strong> look unlikely everto return. Shell’s new CEO, Peter Voser, appears to havecome to a similar c<strong>on</strong>clusi<strong>on</strong> s<str<strong>on</strong>g>in</str<strong>on</strong>g>ce be<str<strong>on</strong>g>in</str<strong>on</strong>g>g appo<str<strong>on</strong>g>in</str<strong>on</strong>g>ted CEO<str<strong>on</strong>g>in</str<strong>on</strong>g> mid 2009. In an <str<strong>on</strong>g>in</str<strong>on</strong>g>terview with the F<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial Times <str<strong>on</strong>g>in</str<strong>on</strong>g>early 2010, Mr Voser pr<strong>on</strong>ounced that Shell, which is <str<strong>on</strong>g>in</str<strong>on</strong>g> thepotentially uncomfortable positi<strong>on</strong> of hav<str<strong>on</strong>g>in</str<strong>on</strong>g>g a third of itsglobal oil resources sitt<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the tar s<strong>and</strong>s of Alberta, wouldbe slow<str<strong>on</strong>g>in</str<strong>on</strong>g>g down planned expansi<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> Canada. The reas<strong>on</strong>given was that other global opportunities now seemedattractive <str<strong>on</strong>g>in</str<strong>on</strong>g> comparis<strong>on</strong>. 124What is becom<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g>creas<str<strong>on</strong>g>in</str<strong>on</strong>g>gly clear is that the oil majorsface a situati<strong>on</strong> of great strategic uncerta<str<strong>on</strong>g>in</str<strong>on</strong>g>ty, reflect<str<strong>on</strong>g>in</str<strong>on</strong>g>gthe disarray <strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>decisi<strong>on</strong> of the UN climate negotiati<strong>on</strong>s<str<strong>on</strong>g>in</str<strong>on</strong>g> Copenhagen at the end of 2009. The world has nolegally b<str<strong>on</strong>g>in</str<strong>on</strong>g>d<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>al agreement to reduce carb<strong>on</strong>emissi<strong>on</strong>s, <strong>and</strong> yet ostensibly, the <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>al will to movedecisively towards a lower carb<strong>on</strong> model of global ec<strong>on</strong>omicactivity rema<str<strong>on</strong>g>in</str<strong>on</strong>g>s str<strong>on</strong>g. This poses an uncomfortabledilemma for oil companies <strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> turn a significant riskfor any pensi<strong>on</strong> funds dependent for dividends <strong>on</strong> BP <strong>and</strong>Shell. Investors <str<strong>on</strong>g>in</str<strong>on</strong>g> both companies have an opportunity atthe Spr<str<strong>on</strong>g>in</str<strong>on</strong>g>g 2010 Annual General Meet<str<strong>on</strong>g>in</str<strong>on</strong>g>gs (AGMs) of BP <strong>and</strong>Shell to dem<strong>and</strong> clearer answers <strong>on</strong> this risk. FairPensi<strong>on</strong>s,work<str<strong>on</strong>g>in</str<strong>on</strong>g>g with a coaliti<strong>on</strong> of <str<strong>on</strong>g>in</str<strong>on</strong>g>vestors <strong>and</strong> NGOs, hassucceeded <str<strong>on</strong>g>in</str<strong>on</strong>g> coord<str<strong>on</strong>g>in</str<strong>on</strong>g>at<str<strong>on</strong>g>in</str<strong>on</strong>g>g shareholder resoluti<strong>on</strong>s to bediscussed at BP <strong>and</strong> Shell’s 2010 shareholder meet<str<strong>on</strong>g>in</str<strong>on</strong>g>gs. 125Members of pensi<strong>on</strong> funds, <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g work<str<strong>on</strong>g>in</str<strong>on</strong>g>g people <str<strong>on</strong>g>in</str<strong>on</strong>g>every sector of the <strong>UK</strong> ec<strong>on</strong>omy, should be watch<str<strong>on</strong>g>in</str<strong>on</strong>g>g thissituati<strong>on</strong> with <str<strong>on</strong>g>in</str<strong>on</strong>g>terest. Indeed, they can do more than watch;they can now also actively engage by express<str<strong>on</strong>g>in</str<strong>on</strong>g>g supportfor the tar s<strong>and</strong>s resoluti<strong>on</strong>s, by c<strong>on</strong>tact<str<strong>on</strong>g>in</str<strong>on</strong>g>g their pensi<strong>on</strong>provider (most easily via www.count<str<strong>on</strong>g>in</str<strong>on</strong>g>gthecost.org.uk) tourge votes <str<strong>on</strong>g>in</str<strong>on</strong>g> favour of the resoluti<strong>on</strong>s.In recent years, many people <str<strong>on</strong>g>in</str<strong>on</strong>g> the <strong>UK</strong> have written lettersto <strong>RBS</strong> <strong>and</strong> the Treasury, or taken part <str<strong>on</strong>g>in</str<strong>on</strong>g> acti<strong>on</strong>s <strong>and</strong>dem<strong>on</strong>strati<strong>on</strong>s at local branches at their headquarters todem<strong>and</strong> an end to the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance of projects that exacerbateclimate change or disregard human rights. These acti<strong>on</strong>srepresent an attempt by civil society to make it possible for‘ord<str<strong>on</strong>g>in</str<strong>on</strong>g>ary’ people to have their voices heard <str<strong>on</strong>g>in</str<strong>on</strong>g> boardroomswhere key decisi<strong>on</strong>s are made. The 2010 <strong>UK</strong> corporate AGMseas<strong>on</strong> represents a similar attempt for citizens who arec<strong>on</strong>cerned about tar s<strong>and</strong>s to engage the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance sector<str<strong>on</strong>g>in</str<strong>on</strong>g> dem<strong>and</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>g f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancially <strong>and</strong> envir<strong>on</strong>mentally resp<strong>on</strong>siblevot<str<strong>on</strong>g>in</str<strong>on</strong>g>g decisi<strong>on</strong>s at the BP <strong>and</strong> Shell AGMs. This is a uniqueopportunity for people who care about tar s<strong>and</strong>s to exercise<str<strong>on</strong>g>in</str<strong>on</strong>g>fluence <str<strong>on</strong>g>in</str<strong>on</strong>g> decisi<strong>on</strong>s be<str<strong>on</strong>g>in</str<strong>on</strong>g>g made that will impact us all.For further <str<strong>on</strong>g>in</str<strong>on</strong>g>fo about the tar s<strong>and</strong>s resoluti<strong>on</strong>s <strong>and</strong>FairPensi<strong>on</strong>s’ plans to mobilise pensi<strong>on</strong> fund membersnati<strong>on</strong>wide c<strong>on</strong>tact: cather<str<strong>on</strong>g>in</str<strong>on</strong>g>e.howarth@fairpensi<strong>on</strong>s.org.uk43
“We are see<str<strong>on</strong>g>in</str<strong>on</strong>g>g a terrify<str<strong>on</strong>g>in</str<strong>on</strong>g>gly high rate of cancer <str<strong>on</strong>g>in</str<strong>on</strong>g>Fort Chipewyan where I live. We are c<strong>on</strong>v<str<strong>on</strong>g>in</str<strong>on</strong>g>ced thatthese cancers are l<str<strong>on</strong>g>in</str<strong>on</strong>g>ked to the tar s<strong>and</strong>sdevelopment <strong>on</strong> our doorstep. It is shorten<str<strong>on</strong>g>in</str<strong>on</strong>g>g ourlives. That’s why we no l<strong>on</strong>ger call it ‘dirty oil’ but‘bloody oil’. The blood of Fort Chipewyan peopleis <strong>on</strong> these companies’ h<strong>and</strong>s. 27– George Poitras, a former chief ofMikisew Cree First Nati<strong>on</strong>”44
<strong>Tar</strong> <strong>S<strong>and</strong>s</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> other parts of the world: MadagascarIn 2004, Madagascar Oil was created specificallyto develop the heavy <strong>and</strong> ultra-heavy oil resources(<str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g tar s<strong>and</strong>s) <strong>on</strong> the western side of Madagascar.The heavy oil fields are located <str<strong>on</strong>g>in</str<strong>on</strong>g> two fields, Bemolanga<strong>and</strong> Tsimiroro <strong>and</strong> are both approximately 70km 2 <str<strong>on</strong>g>in</str<strong>on</strong>g>size. 111It is estimated that the fields possibly c<strong>on</strong>ta<str<strong>on</strong>g>in</str<strong>on</strong>g> acomb<str<strong>on</strong>g>in</str<strong>on</strong>g>ed 26,385 milli<strong>on</strong> barrels. Madagascar Oilbelieves these two fields could produce more then280,000 barrels a day for over 20 years 112 <strong>and</strong> at leasta further 180,000 barrels for 10 years after that. 113 InSeptember 2008, Total paid $100 milli<strong>on</strong> for the 60%ownership of the Bemolanga field. 114Near the Tsimiroro field is the 1,520km 2 Ts<str<strong>on</strong>g>in</str<strong>on</strong>g>gy deBemaraha nature reserve. This was <str<strong>on</strong>g>in</str<strong>on</strong>g>scribed as aUNESCO World Heritage site <str<strong>on</strong>g>in</str<strong>on</strong>g> 1990, due to its limest<strong>on</strong>ekarst l<strong>and</strong>scapes, undisturbed forests <strong>and</strong> mangroveswamps. 115The Tsimiroro site is also very close to the source of theimportant Manambolo River. Almost 120,000 peoplelive <str<strong>on</strong>g>in</str<strong>on</strong>g> a large number of villages that make up theMorafenobe commune with<str<strong>on</strong>g>in</str<strong>on</strong>g> the Bemolanga field. OnMarch 17, 2009, democratically elected President MarcRavalomanana transferred power to the High Transiti<strong>on</strong>alAuthority (HTA). The US state Department c<strong>on</strong>sidered thismove tantamount to a military coup d’état <strong>and</strong> thereforedoes not recognize the HTA. 116The World Bank placed Madagascar 91 st <strong>on</strong> its 2008C<strong>on</strong>trol of Corrupti<strong>on</strong> Indicator, <strong>and</strong> 134 th <strong>on</strong> its 2009Do<str<strong>on</strong>g>in</str<strong>on</strong>g>g Bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess Rank<str<strong>on</strong>g>in</str<strong>on</strong>g>g. 117 Madagascar Oil admit that theoil c<strong>on</strong>tracts “c<strong>on</strong>ta<str<strong>on</strong>g>in</str<strong>on</strong>g> attractive terms <strong>and</strong> c<strong>on</strong>diti<strong>on</strong>s.” 118Under the current c<strong>on</strong>tracts, even after thirty years ofcommercial producti<strong>on</strong>, the government of Madagascarwill <strong>on</strong>ly be receiv<str<strong>on</strong>g>in</str<strong>on</strong>g>g 4% of the oil revenues. 11945
CONCLUSIONS47
CONCLUSIONSIn light of the climate crisis, as well as the devastat<str<strong>on</strong>g>in</str<strong>on</strong>g>gimpacts that tar s<strong>and</strong>s are hav<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong> communities <strong>and</strong>ecosystems <str<strong>on</strong>g>in</str<strong>on</strong>g> Canada, <strong>and</strong> their potential to wreak havoc<str<strong>on</strong>g>in</str<strong>on</strong>g> other parts of the world, this report calls for all parties<str<strong>on</strong>g>in</str<strong>on</strong>g>volved to act resp<strong>on</strong>sibly <strong>and</strong> f<str<strong>on</strong>g>in</str<strong>on</strong>g>d ways to stop f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial<str<strong>on</strong>g>in</str<strong>on</strong>g>stituti<strong>on</strong>s provid<str<strong>on</strong>g>in</str<strong>on</strong>g>g the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance to companies to exp<strong>and</strong>such operati<strong>on</strong>s.Recommendati<strong>on</strong>s to the <strong>UK</strong> bank<str<strong>on</strong>g>in</str<strong>on</strong>g>g sector• Create a moratorium <strong>on</strong> provid<str<strong>on</strong>g>in</str<strong>on</strong>g>g f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance of any k<str<strong>on</strong>g>in</str<strong>on</strong>g>dto companies that are actively engaged <str<strong>on</strong>g>in</str<strong>on</strong>g> extract<str<strong>on</strong>g>in</str<strong>on</strong>g>gtar s<strong>and</strong>s or any other forms of ‘unc<strong>on</strong>venti<strong>on</strong>al’ oil.• Develop revised <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment m<strong>and</strong>ates draw<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong>expertise <strong>and</strong> guidance from <str<strong>on</strong>g>in</str<strong>on</strong>g>dependent sources<strong>and</strong> best practices <str<strong>on</strong>g>in</str<strong>on</strong>g> the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial sector to identifywhich activities, such as tar s<strong>and</strong>s extracti<strong>on</strong>,should not be funded <str<strong>on</strong>g>in</str<strong>on</strong>g> future.• Make Free, Prior <strong>and</strong> Informed C<strong>on</strong>sent ofIndigenous <strong>and</strong>/or local communities a c<strong>on</strong>diti<strong>on</strong> ofall forms of project f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance.Recommendati<strong>on</strong>s to the Chancellor of the Exchequer <strong>and</strong>the <strong>UK</strong> Treasury, the Treasury Select Committee, <strong>and</strong> theM<str<strong>on</strong>g>in</str<strong>on</strong>g>ister for Bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess, Innovati<strong>on</strong> <strong>and</strong> Skills• Use the majority public ownership of <strong>RBS</strong> toimmediately impose lend<str<strong>on</strong>g>in</str<strong>on</strong>g>g st<strong>and</strong>ards <strong>on</strong> the bank48
to prevent the f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g of companies that:o are engag<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the extracti<strong>on</strong> of tar s<strong>and</strong>s orother forms of ‘unc<strong>on</strong>venti<strong>on</strong>al’ oil explorati<strong>on</strong>,development or transport;o do not ask for the Free, Prior <strong>and</strong> InformedC<strong>on</strong>sent of Indigenous <strong>and</strong>/or local communities.• Include enhanced st<strong>and</strong>ards for envir<strong>on</strong>mental<strong>and</strong> human rights protecti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the currentparliamentary discussi<strong>on</strong> of the re-regulati<strong>on</strong> of thebank<str<strong>on</strong>g>in</str<strong>on</strong>g>g sector <str<strong>on</strong>g>in</str<strong>on</strong>g> the wake of the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial crisis.• Provide <str<strong>on</strong>g>in</str<strong>on</strong>g>centives for l<strong>on</strong>g-term, susta<str<strong>on</strong>g>in</str<strong>on</strong>g>ablebehaviour by l<str<strong>on</strong>g>in</str<strong>on</strong>g>k<str<strong>on</strong>g>in</str<strong>on</strong>g>g executive pay to thecompanies’ l<strong>on</strong>g-term performance <strong>and</strong> to thebank’s envir<strong>on</strong>mental <strong>and</strong> social performance.Recommendati<strong>on</strong>s to the Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples Steer<str<strong>on</strong>g>in</str<strong>on</strong>g>gCommittee <strong>and</strong> all Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples signatories• Include <str<strong>on</strong>g>in</str<strong>on</strong>g> the Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples the climate impact ofproposed projects as an <str<strong>on</strong>g>in</str<strong>on</strong>g>tegral part of all riskassessments. Commit to a process of c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>uouslytighten<str<strong>on</strong>g>in</str<strong>on</strong>g>g the c<strong>on</strong>diti<strong>on</strong>s for f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g under thePr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples, if required, to meet the challenges posedby an unfold<str<strong>on</strong>g>in</str<strong>on</strong>g>g climate crisis.• Include additi<strong>on</strong>al pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples that categoricallyexclude the f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g of all new projects <str<strong>on</strong>g>in</str<strong>on</strong>g>volv<str<strong>on</strong>g>in</str<strong>on</strong>g>gthe exploitati<strong>on</strong> of tar s<strong>and</strong>s <strong>and</strong> other forms of‘unc<strong>on</strong>venti<strong>on</strong>al’ oil.• Commit to work<str<strong>on</strong>g>in</str<strong>on</strong>g>g with groups such as Carb<strong>on</strong>Disclosure Project <strong>and</strong> BankTrack to developworkable <str<strong>on</strong>g>in</str<strong>on</strong>g>struments for measur<str<strong>on</strong>g>in</str<strong>on</strong>g>g f<str<strong>on</strong>g>in</str<strong>on</strong>g>anced (or‘embedded’) emissi<strong>on</strong>s, <strong>and</strong> adopt reducti<strong>on</strong> targetsfor each bank. Provide a str<str<strong>on</strong>g>in</str<strong>on</strong>g>gent timel<str<strong>on</strong>g>in</str<strong>on</strong>g>e for this.Access for Western oil companies to c<strong>on</strong>venti<strong>on</strong>al formsof oil producti<strong>on</strong> has been <str<strong>on</strong>g>in</str<strong>on</strong>g>creas<str<strong>on</strong>g>in</str<strong>on</strong>g>gly difficult to secure.Meanwhile governments, the bank<str<strong>on</strong>g>in</str<strong>on</strong>g>g sector <strong>and</strong> oilcompanies have collaborated to cash <str<strong>on</strong>g>in</str<strong>on</strong>g> <strong>on</strong> tar s<strong>and</strong>s byensur<str<strong>on</strong>g>in</str<strong>on</strong>g>g that this dirty <strong>and</strong> devastat<str<strong>on</strong>g>in</str<strong>on</strong>g>g form of energy isguided <str<strong>on</strong>g>in</str<strong>on</strong>g>to the global energy market. The grave threat ofclimate change to people’s lives <strong>and</strong> livelihoods across theglobe rema<str<strong>on</strong>g>in</str<strong>on</strong>g>s unparalleled, yet <str<strong>on</strong>g>in</str<strong>on</strong>g>vestments <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>sexpansi<strong>on</strong> ensure the energy model resp<strong>on</strong>sible for the crisisis further entrenched. We need to seize the opportunity totake steps towards c<strong>on</strong>siderable <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment <str<strong>on</strong>g>in</str<strong>on</strong>g> renewables<strong>and</strong> energy efficiency whilst reduc<str<strong>on</strong>g>in</str<strong>on</strong>g>g c<strong>on</strong>sumpti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> orderto prevent the worst impacts of climate change.The failure by governments <strong>and</strong> bus<str<strong>on</strong>g>in</str<strong>on</strong>g>esses to trulyrecognise the enormity of the threat means that the rights<strong>and</strong> lives of Indigenous Peoples <strong>and</strong> the most cash-poorpeople <str<strong>on</strong>g>in</str<strong>on</strong>g> the world are be<str<strong>on</strong>g>in</str<strong>on</strong>g>g ignored, ru<str<strong>on</strong>g>in</str<strong>on</strong>g>ed <str<strong>on</strong>g>in</str<strong>on</strong>g> the rushto obta<str<strong>on</strong>g>in</str<strong>on</strong>g> profits from tar s<strong>and</strong>s cloaked <str<strong>on</strong>g>in</str<strong>on</strong>g> the rhetoric ofenergy security. Legal acti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the <strong>UK</strong> <strong>and</strong> Canada, BP <strong>and</strong>Shell shareholder c<strong>on</strong>cern, civil society campaigns <strong>and</strong>grassroots activism are coalesc<str<strong>on</strong>g>in</str<strong>on</strong>g>g to redress this wr<strong>on</strong>g.49
Appendix I: F<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial DataAll figures <str<strong>on</strong>g>in</str<strong>on</strong>g> US$ milli<strong>on</strong>Total <strong>Tar</strong> <strong>S<strong>and</strong>s</strong> F<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g = $13,843.52Total fees earned from tar s<strong>and</strong>s issuances = $38.5Issuer Name Date Amount (US$ milli<strong>on</strong>) ProductC<strong>on</strong>ocoPhillips 5.5.2008 200 CorpShell Internati<strong>on</strong>al F<str<strong>on</strong>g>in</str<strong>on</strong>g>ance BV 8.12.2008 1375 CorpK<str<strong>on</strong>g>in</str<strong>on</strong>g>der Morgan Energy Partners LP 16.12.2008 166.67 CorpC<strong>on</strong>ocoPhillips 29.1.2009 250 CorpC<strong>on</strong>ocoPhillips 29.1.2009 375 CorpC<strong>on</strong>ocoPhillips 29.1.2009 375 CorpChevr<strong>on</strong> Corp 26.2.2009 750 CorpChevr<strong>on</strong> Corp 26.2.2009 750 CorpChevr<strong>on</strong> Corp 26.2.2009 1000 CorpStatoilHydro ASA 4.3.2009 378.52 CorpStatoilHydro ASA 4.3.2009 379.83 CorpStatoilHydro ASA 4.3.2009 411.48 CorpShell Internati<strong>on</strong>al F<str<strong>on</strong>g>in</str<strong>on</strong>g>ance BV 18.3.2009 1250 CorpShell Internati<strong>on</strong>al F<str<strong>on</strong>g>in</str<strong>on</strong>g>ance BV 6.5.2009 1111.21 CorpShell Internati<strong>on</strong>al F<str<strong>on</strong>g>in</str<strong>on</strong>g>ance BV 6.5.2009 1111.21 CorpOccidental Petroleum Corp 12.5.2009 187.5 CorpC<strong>on</strong>ocoPhillips 18.5.2009 71.43 CorpC<strong>on</strong>ocoPhillips 18.5.2009 214.29 CorpC<strong>on</strong>ocoPhillips 18.5.2009 142.86 CorpKorea Nati<strong>on</strong>al Oil Corp 23.7.2009 166.67 CorpK<str<strong>on</strong>g>in</str<strong>on</strong>g>der Morgan Energy Partners LP 11.9.2009 100 CorpK<str<strong>on</strong>g>in</str<strong>on</strong>g>der Morgan Energy Partners LP 11.9.2009 150 CorpCenovus Energy Inc 15.9.2009 266.67 CorpCenovus Energy Inc 15.9.2009 433.33 CorpCenovus Energy Inc 15.9.2009 466.67 CorpK<str<strong>on</strong>g>in</str<strong>on</strong>g>der Morgan Energy Partners LP 27.2.2008 165.89 EquityK<str<strong>on</strong>g>in</str<strong>on</strong>g>der Morgan Energy Partners LP 9.6.2009 85.14 EquityK<str<strong>on</strong>g>in</str<strong>on</strong>g>der Morgan Energy Partners LP 1.12.2009 59.15 EquityC<strong>on</strong>ocoPhillips 4.4.2007 1250 LoanEnbridge Energy Partners LP 9.4.2009 200 Loan
Appendix I: F<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial DataAll figures <str<strong>on</strong>g>in</str<strong>on</strong>g> US$ milli<strong>on</strong>Total <strong>Tar</strong> <strong>S<strong>and</strong>s</strong> F<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g = $8,823.32Total fees earned from tar s<strong>and</strong>s issuances = $31.12Issuer Name Date Amount (US$ milli<strong>on</strong>) ProductTotal Capital SA 22.1.2007 197.56 CorpEnCana Corp 7.3.2007 212.07 CorpShell Internati<strong>on</strong>al F<str<strong>on</strong>g>in</str<strong>on</strong>g>ance BV 8.3.2007 192.83 CorpEnbridge Inc 31.5.2007 200 CorpTotal Capital SA 24.7.2007 103.1 CorpHusky Energy Inc 6.9.2007 100 CorpHusky Energy Inc 6.9.2007 150 CorpTransCanada Pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es Ltd 2.10.2007 500 CorpTotal Capital SA 8.10.2007 101.8 CorpEnbridge Energy Partners LP 31.3.2008 133.33 CorpEnbridge Energy Partners LP 31.3.2008 133.33 CorpPetro-Canada 12.5.2008 200 CorpPetro-Canada 12.5.2008 300 CorpTotal Capital SA 3.7.2008 99.17 CorpTransCanada Pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es Ltd 6.1.2009 375 CorpTransCanada Pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es Ltd 6.1.2009 625 CorpTotal Capital SA 13.3.2009 387.5 CorpTotal Capital SA 19.3.2009 239.16 CorpCanadian Oil <strong>S<strong>and</strong>s</strong> Ltd 6.5.2009 250 CorpHusky Energy Inc 6.5.2009 250 CorpHusky Energy Inc 6.5.2009 250 CorpShell Internati<strong>on</strong>al F<str<strong>on</strong>g>in</str<strong>on</strong>g>ance BV 6.5.2009 1111.21 CorpShell Internati<strong>on</strong>al F<str<strong>on</strong>g>in</str<strong>on</strong>g>ance BV 6.5.2009 1111.21 CorpTotal Capital SA 7.5.2009 368.22 CorpTotal Capital SA 2.6.2009 165.8 CorpNexen Inc 27.7.2009 75 CorpNexen Inc 27.7.2009 175 CorpTotal Capital SA 17.11.2009 150 CorpHusky Energy Inc 3.7.2007 666.67 Loan
Appendix I: F<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial DataAll figures <str<strong>on</strong>g>in</str<strong>on</strong>g> US$ milli<strong>on</strong>Total <strong>Tar</strong> <strong>S<strong>and</strong>s</strong> F<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g = $12,714.53Total fees earned from tar s<strong>and</strong>s issuances = $23.23Issuer Name Date Amount (US$ milli<strong>on</strong>) ProductTotal Capital SA 11.1.2007 320.1 CorpShell Internati<strong>on</strong>al F<str<strong>on</strong>g>in</str<strong>on</strong>g>ance BV 9.2.2007 195.12 CorpShell Internati<strong>on</strong>al F<str<strong>on</strong>g>in</str<strong>on</strong>g>ance BV 8.3.2007 192.83 CorpTotal Capital SA 23.05.2007 403.78 CorpK<str<strong>on</strong>g>in</str<strong>on</strong>g>der Morgan Energy Partners LP 18.6.2007 183.33 CorpTotal Capital SA 26.9.2007 100.79 CorpK<str<strong>on</strong>g>in</str<strong>on</strong>g>der Morgan Energy Partners LP 5.2.2008 300 CorpK<str<strong>on</strong>g>in</str<strong>on</strong>g>der Morgan Energy Partners LP 5.2.2008 150 CorpTotal Capital SA 19.3.2008 100.18 CorpTotal Capital SA 25.4.2008 96.69 CorpC<strong>on</strong>ocoPhillips 5.5.2008 133.33 CorpC<strong>on</strong>ocoPhillips 5.5.2008 166.67 CorpC<strong>on</strong>ocoPhillips 5.5.2008 200 CorpTotal Capital SA 10.6.2008 154.67 CorpK<str<strong>on</strong>g>in</str<strong>on</strong>g>der Morgan Energy Partners LP 16.12.2008 166.67 CorpEnbridge Energy Partners LP 17.12.2008 166.67 CorpDev<strong>on</strong> Energy Corp 6.1.2009 83.33 CorpDev<strong>on</strong> Energy Corp 6.1.2009 116.67 CorpC<strong>on</strong>ocoPhillips 29.1.2009 250 CorpC<strong>on</strong>ocoPhillips 29.1.2009 375 CorpC<strong>on</strong>ocoPhillips 29.1.2009 375 CorpStatoilHydro ASA 4.3.2009 378.52 CorpTotal Capital SA 7.5.2009 132.69 CorpC<strong>on</strong>ocoPhillips 18.5.2009 71.43 CorpC<strong>on</strong>ocoPhillips 18.5.2009 214.29 CorpC<strong>on</strong>ocoPhillips 18.5.2009 142.86 CorpCh<str<strong>on</strong>g>in</str<strong>on</strong>g>a Nati<strong>on</strong>al Petroleum Corp 28.2.2007 43.91 LoanKoch Resources LLC 10.7.2007 1250 LoanC<strong>on</strong>ocoPhillips 7.9.2007 3750 LoanC<strong>on</strong>ocoPhillips 1.10.2008 2500 Loan
Appendix II: <strong>RBS</strong> <strong>and</strong> its history of fossil fuel f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance<strong>RBS</strong>’ high level of tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment must be viewed with<str<strong>on</strong>g>in</str<strong>on</strong>g>the c<strong>on</strong>text of their <str<strong>on</strong>g>in</str<strong>on</strong>g>volvement <str<strong>on</strong>g>in</str<strong>on</strong>g> f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g the fossil fuelsector more generally. In the last decade it has been <strong>on</strong>e ofthe most significant funders of the oil <strong>and</strong> gas sector <str<strong>on</strong>g>in</str<strong>on</strong>g> the<strong>UK</strong>. Between 2001 <strong>and</strong> 2006, <strong>RBS</strong> provided over $10 billi<strong>on</strong><str<strong>on</strong>g>in</str<strong>on</strong>g> oil <strong>and</strong> gas loans, <strong>and</strong> structured the loan agreements <strong>and</strong>acted as f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial adviser <strong>on</strong> over $30 billi<strong>on</strong> of oil <strong>and</strong> gasprojects, accord<str<strong>on</strong>g>in</str<strong>on</strong>g>g to a report published <str<strong>on</strong>g>in</str<strong>on</strong>g> 2007. 126 The reportalso calculated that the ‘embedded emissi<strong>on</strong>s’ 127 with<str<strong>on</strong>g>in</str<strong>on</strong>g> <strong>RBS</strong>project f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance to oil <strong>and</strong> gas projects exceeded 36.9 milli<strong>on</strong>t<strong>on</strong>nes <str<strong>on</strong>g>in</str<strong>on</strong>g> 2005, equivalent to those of 6.2 milli<strong>on</strong> homes (<strong>on</strong>equarter of <strong>UK</strong> households).In 2008, the report <str<strong>on</strong>g>Cash<str<strong>on</strong>g>in</str<strong>on</strong>g>g</str<strong>on</strong>g> <str<strong>on</strong>g>in</str<strong>on</strong>g> <strong>on</strong> Coal, analysed the<str<strong>on</strong>g>in</str<strong>on</strong>g>vestments of HSBC, Barclays <strong>and</strong> <strong>RBS</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> coal-relatedcompanies over the period May 2006 to April 2008. It foundthat whilst HSBC had participated <str<strong>on</strong>g>in</str<strong>on</strong>g> 3 different loans, <strong>and</strong>Barclays <str<strong>on</strong>g>in</str<strong>on</strong>g> 17, <strong>RBS</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>vested <str<strong>on</strong>g>in</str<strong>on</strong>g> 27 different loans to the coal<str<strong>on</strong>g>in</str<strong>on</strong>g>dustry, totall<str<strong>on</strong>g>in</str<strong>on</strong>g>g an estimated $15.93 billi<strong>on</strong>. 128It is not <strong>on</strong>ly the climate impacts of projects <strong>and</strong> companiesthat <strong>RBS</strong> has f<str<strong>on</strong>g>in</str<strong>on</strong>g>anced that have raised c<strong>on</strong>cerns. Like their<str<strong>on</strong>g>in</str<strong>on</strong>g>vestments <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s, many projects have been criticisedfor be<str<strong>on</strong>g>in</str<strong>on</strong>g>g associated with human rights abuses, other formsof envir<strong>on</strong>mental degradati<strong>on</strong>, or for operat<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> politically<strong>and</strong>/or envir<strong>on</strong>mentally sensitive regi<strong>on</strong>s. In the last yearthese have <str<strong>on</strong>g>in</str<strong>on</strong>g>cluded:• Provid<str<strong>on</strong>g>in</str<strong>on</strong>g>g two rounds of f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance to Tullow Oil, whichis explor<str<strong>on</strong>g>in</str<strong>on</strong>g>g for oil <strong>on</strong> the Ug<strong>and</strong>an – DemocraticRepublic of C<strong>on</strong>go border, an area which has seen<str<strong>on</strong>g>in</str<strong>on</strong>g>tense c<strong>on</strong>flict <str<strong>on</strong>g>in</str<strong>on</strong>g> recent years, c<strong>on</strong>flict which isnow be<str<strong>on</strong>g>in</str<strong>on</strong>g>g exacerbated by compet<str<strong>on</strong>g>in</str<strong>on</strong>g>g dem<strong>and</strong>sfor c<strong>on</strong>trol over resources 129 . In March 2009 ithelped provide f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g worth $100 milli<strong>on</strong> <strong>and</strong>acted as jo<str<strong>on</strong>g>in</str<strong>on</strong>g>t global co-ord<str<strong>on</strong>g>in</str<strong>on</strong>g>ator <strong>and</strong> bookrunnerwith Bank of America Merrill Lynch <str<strong>on</strong>g>in</str<strong>on</strong>g> a share salerais<str<strong>on</strong>g>in</str<strong>on</strong>g>g £925 milli<strong>on</strong> for the company <str<strong>on</strong>g>in</str<strong>on</strong>g> January2010. 130 The Producti<strong>on</strong> Shar<str<strong>on</strong>g>in</str<strong>on</strong>g>g Agreements wereanalysed <str<strong>on</strong>g>in</str<strong>on</strong>g> a recent report 131 that makes the casefor changes <str<strong>on</strong>g>in</str<strong>on</strong>g> the c<strong>on</strong>tract between Tullow <strong>and</strong>the Ug<strong>and</strong>an government <strong>on</strong> account of resourcesovereignty <strong>and</strong> envir<strong>on</strong>mental c<strong>on</strong>cerns. 132 JacobMay<str<strong>on</strong>g>in</str<strong>on</strong>g>do of the Ug<strong>and</strong>a Wildlife Society said that,“there are significant <strong>and</strong> justifiable c<strong>on</strong>cerns aboutenvir<strong>on</strong>mental safeguards relat<str<strong>on</strong>g>in</str<strong>on</strong>g>g to oil explorati<strong>on</strong><strong>and</strong> producti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> Ug<strong>and</strong>a, <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g the lack of astrategic envir<strong>on</strong>mental assessment. The negativeimpacts to biodiversity <strong>and</strong> tourism, <strong>and</strong> air, water<strong>and</strong> l<strong>and</strong> polluti<strong>on</strong> have yet to be adequatelyaddressed. There is currently little evidence of thecompanies’ [Tullow <strong>and</strong> Heritage] commitmentto create, m<strong>on</strong>itor <strong>and</strong> enforce envir<strong>on</strong>mentalprotecti<strong>on</strong>s.’’ 13353
• Issu<str<strong>on</strong>g>in</str<strong>on</strong>g>g loans worth $100m to Sterlite, which is60% owned by Vedanta, the m<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g company fac<str<strong>on</strong>g>in</str<strong>on</strong>g>gc<strong>on</strong>troversy over its plans for an open cast bauxitem<str<strong>on</strong>g>in</str<strong>on</strong>g>e <strong>on</strong> Niyamgiri mounta<str<strong>on</strong>g>in</str<strong>on</strong>g> <str<strong>on</strong>g>in</str<strong>on</strong>g> Orissa, India.Vedanta’s Niyamgiri m<str<strong>on</strong>g>in</str<strong>on</strong>g>e project has been criticisedby the <strong>UK</strong> government, <strong>and</strong> caused the Church ofEngl<strong>and</strong> to sell its £3.8milli<strong>on</strong> stake <str<strong>on</strong>g>in</str<strong>on</strong>g> the company,follow<str<strong>on</strong>g>in</str<strong>on</strong>g>g evidence that <str<strong>on</strong>g>in</str<strong>on</strong>g>digenous tribes would bedisplaced <strong>and</strong> ancient forests severely degraded ifthe m<str<strong>on</strong>g>in</str<strong>on</strong>g>e were to go ahead. 134<strong>RBS</strong> is not <strong>on</strong>ly a lead<str<strong>on</strong>g>in</str<strong>on</strong>g>g arranger of f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance to the fossilfuel sector, it also deploys its expertise to source, f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance<strong>and</strong> structure loan agreements <strong>and</strong> provide key advisoryservices to the sector. In September 2009, <str<strong>on</strong>g>in</str<strong>on</strong>g> c<strong>on</strong>juncti<strong>on</strong>with Oil <strong>and</strong> Gas <strong>UK</strong>, <strong>RBS</strong> sp<strong>on</strong>sored, <strong>and</strong> provided a keyspeaker for sem<str<strong>on</strong>g>in</str<strong>on</strong>g>ars <strong>on</strong> how to revitalise the oil <strong>and</strong> gas<str<strong>on</strong>g>in</str<strong>on</strong>g>dustry <str<strong>on</strong>g>in</str<strong>on</strong>g> the wake of the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial crisis. 135 <strong>RBS</strong> has builtclose relati<strong>on</strong>ships with Cairn Energy, which is currentlyestablish<str<strong>on</strong>g>in</str<strong>on</strong>g>g itself to drill up to four oil wells <str<strong>on</strong>g>in</str<strong>on</strong>g> the Arcticoff the coast of Greenl<strong>and</strong>. <strong>RBS</strong> acted as jo<str<strong>on</strong>g>in</str<strong>on</strong>g>t arranger withMerrill Lynch, plac<str<strong>on</strong>g>in</str<strong>on</strong>g>g shares worth £116 milli<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> March2009. 136 <strong>RBS</strong> Hoare Govett has made public statementsto create enthusiasm with<str<strong>on</strong>g>in</str<strong>on</strong>g> the market for Cairn’s Arcticexplorati<strong>on</strong>, describ<str<strong>on</strong>g>in</str<strong>on</strong>g>g the company’s announcementto br<str<strong>on</strong>g>in</str<strong>on</strong>g>g drill<str<strong>on</strong>g>in</str<strong>on</strong>g>g forward from 2011 to 2010 as an “earlyChristmas present” <str<strong>on</strong>g>in</str<strong>on</strong>g> December 2009. 137<strong>RBS</strong>’ <str<strong>on</strong>g>in</str<strong>on</strong>g>timate f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial l<str<strong>on</strong>g>in</str<strong>on</strong>g>ks with the fossil fuel <str<strong>on</strong>g>in</str<strong>on</strong>g>dustryhave not g<strong>on</strong>e unnoticed by an <str<strong>on</strong>g>in</str<strong>on</strong>g>creas<str<strong>on</strong>g>in</str<strong>on</strong>g>gly climatec<strong>on</strong>sciouspublic <str<strong>on</strong>g>in</str<strong>on</strong>g> the <strong>UK</strong>. In May 2009, <strong>RBS</strong> came bottom<str<strong>on</strong>g>in</str<strong>on</strong>g> a league table of <strong>UK</strong> high street <strong>banks</strong> created byEthical C<strong>on</strong>sumer magaz<str<strong>on</strong>g>in</str<strong>on</strong>g>e, partly as a result of its fossilfuel f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance. 138 Later <strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the year, <strong>RBS</strong> was named <strong>and</strong>shamed as a ‘villa<str<strong>on</strong>g>in</str<strong>on</strong>g>’ <str<strong>on</strong>g>in</str<strong>on</strong>g> the New Statesman’s ‘20 greenheroes <strong>and</strong> villa<str<strong>on</strong>g>in</str<strong>on</strong>g>s’ feature. 139 The disclosure of the extentof <strong>RBS</strong>’ <str<strong>on</strong>g>in</str<strong>on</strong>g>volvement <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s at a time when the issue isbecom<str<strong>on</strong>g>in</str<strong>on</strong>g>g an <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>al sc<strong>and</strong>al is likely to c<strong>on</strong>tribute tofurther br<strong>and</strong> damage to <strong>RBS</strong>.54
Appendix III: Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples <strong>and</strong> Climate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples –The bank<str<strong>on</strong>g>in</str<strong>on</strong>g>g sector’s resp<strong>on</strong>se to climate changeThe case of the Equator BanksThe Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples 140 claim to offer an <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>alst<strong>and</strong>ard for project f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance, the k<str<strong>on</strong>g>in</str<strong>on</strong>g>d of lend<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> which<strong>banks</strong> directly <str<strong>on</strong>g>in</str<strong>on</strong>g>vest <str<strong>on</strong>g>in</str<strong>on</strong>g> specific projects undertaken by acompany, or ‘sp<strong>on</strong>sor’. Established <str<strong>on</strong>g>in</str<strong>on</strong>g> 2003, there are now69 signatories <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>RBS</strong>, HSBC <strong>and</strong> Barclays. TheEquator <strong>banks</strong> “adopted these Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples <str<strong>on</strong>g>in</str<strong>on</strong>g> order to ensurethat the projects we f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance are developed <str<strong>on</strong>g>in</str<strong>on</strong>g> a manner thatis socially resp<strong>on</strong>sible <strong>and</strong> reflect sound envir<strong>on</strong>mentalmanagement practices.” 141 Thus <str<strong>on</strong>g>in</str<strong>on</strong>g> Equator-compliantprojects, “negative impacts <strong>on</strong> project-affected ecosystems<strong>and</strong> communities should be avoided where possible”.C<strong>on</strong>cerns have been raised over the value of the EquatorPr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples <str<strong>on</strong>g>in</str<strong>on</strong>g> the wake of numerous harmful projectsbe<str<strong>on</strong>g>in</str<strong>on</strong>g>g f<str<strong>on</strong>g>in</str<strong>on</strong>g>anced by Equator <strong>banks</strong>, <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g Mounta<str<strong>on</strong>g>in</str<strong>on</strong>g>Top Removal coal m<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the US, the Rio Madeira dam<str<strong>on</strong>g>in</str<strong>on</strong>g> Brazil, <strong>and</strong> a gas pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e <str<strong>on</strong>g>in</str<strong>on</strong>g> Papua New Gu<str<strong>on</strong>g>in</str<strong>on</strong>g>ea. 142 Thewater, ecosystem <strong>and</strong> community impacts – related both tohealth <strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>digenous l<strong>and</strong> rights – of Canadian tar s<strong>and</strong>s’extracti<strong>on</strong>, c<strong>on</strong>versi<strong>on</strong> to syncrude <strong>and</strong> transportati<strong>on</strong> areall issues covered by the Internati<strong>on</strong>al F<str<strong>on</strong>g>in</str<strong>on</strong>g>ance Corporati<strong>on</strong>’sPerformance St<strong>and</strong>ards (currently under review 143 ) to whichthe Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples are aligned 144 , but n<strong>on</strong>etheless 26 145Equator <strong>banks</strong> have f<str<strong>on</strong>g>in</str<strong>on</strong>g>anced Canadian tar s<strong>and</strong>s projects<strong>and</strong> companies operat<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> the tar s<strong>and</strong>s.In resp<strong>on</strong>se to climate change, the Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciplescommit signatories to “promote the reducti<strong>on</strong> of projectrelatedgreenhouse gas (GHG) emissi<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> a mannerappropriate to the nature <strong>and</strong> scale of project operati<strong>on</strong>s<strong>and</strong> impacts”. BankTrack, an <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>al networkm<strong>on</strong>itor<str<strong>on</strong>g>in</str<strong>on</strong>g>g bank<str<strong>on</strong>g>in</str<strong>on</strong>g>g f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance, recently c<strong>on</strong>vened close to 100organisati<strong>on</strong>s worldwide to call for “major reforms..[of thePr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples]..<strong>on</strong> transparency, accountability, implementati<strong>on</strong><strong>and</strong> climate change.” 146The call, <str<strong>on</strong>g>in</str<strong>on</strong>g> the form of a letter, also po<str<strong>on</strong>g>in</str<strong>on</strong>g>ted out thenarrowness of the Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples with regards to theclimate change impacts of projects, as they <strong>on</strong>ly take <str<strong>on</strong>g>in</str<strong>on</strong>g>toc<strong>on</strong>siderati<strong>on</strong> emissi<strong>on</strong>s which result from energy use <str<strong>on</strong>g>in</str<strong>on</strong>g>the producti<strong>on</strong> process <strong>and</strong> not result<str<strong>on</strong>g>in</str<strong>on</strong>g>g from the ultimatecombusti<strong>on</strong> of a product of a specific project (oil, gas, coalfuel). In effect, there is no dis<str<strong>on</strong>g>in</str<strong>on</strong>g>centive to persuade or direct<strong>banks</strong> not to f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance massive fossil fuel explorati<strong>on</strong> <strong>and</strong>exploitati<strong>on</strong> projects that will lead to billi<strong>on</strong>s of t<strong>on</strong>s ofgreenhouse gases be<str<strong>on</strong>g>in</str<strong>on</strong>g>g released <str<strong>on</strong>g>in</str<strong>on</strong>g>to the atmosphere.” 147The Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples are limited <str<strong>on</strong>g>in</str<strong>on</strong>g> their scope partlybecause they are applicable <strong>on</strong>ly to project f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance asopposed to other forms of f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance. Lack of liquidity <str<strong>on</strong>g>in</str<strong>on</strong>g> thewake of the recent f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial crisis has meant that there55
has been a significant decl<str<strong>on</strong>g>in</str<strong>on</strong>g>e <str<strong>on</strong>g>in</str<strong>on</strong>g> the more capital-<str<strong>on</strong>g>in</str<strong>on</strong>g>tensiveproject f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance market. 148 If <strong>banks</strong> use corporate loans tof<str<strong>on</strong>g>in</str<strong>on</strong>g>ance companies <str<strong>on</strong>g>in</str<strong>on</strong>g>volved <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s extracti<strong>on</strong>, theycan effectively evade their commitments under the EquatorPr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples.Manag<str<strong>on</strong>g>in</str<strong>on</strong>g>g climate changeThe more recently drawn up Climate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples, 149 whichwere announced <str<strong>on</strong>g>in</str<strong>on</strong>g> December 2008 with six signatories<str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g HSBC, look at different types of f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g tocoalesce guidance <strong>on</strong> the “risks <strong>and</strong> opportunities” posedby catastrophic climate change. Much of the c<strong>on</strong>tent outl<str<strong>on</strong>g>in</str<strong>on</strong>g>esnew markets associated with low carb<strong>on</strong> transiti<strong>on</strong>s, <strong>and</strong>bypasses the questi<strong>on</strong> of f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g activities that causeclimate change.The Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples assume dis<str<strong>on</strong>g>in</str<strong>on</strong>g>centives for fossil fuelc<strong>on</strong>sumpti<strong>on</strong> lie <strong>on</strong>ly with governments <strong>and</strong> c<strong>on</strong>sumers,c<strong>on</strong>veniently overlook<str<strong>on</strong>g>in</str<strong>on</strong>g>g the crucial cog <str<strong>on</strong>g>in</str<strong>on</strong>g> the fossil fuelec<strong>on</strong>omy that is f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance. Yet <str<strong>on</strong>g>in</str<strong>on</strong>g> 2006, HSBC acknowledgedthat its “most significant impact [<strong>on</strong> climate change] is the<str<strong>on</strong>g>in</str<strong>on</strong>g>vestment <strong>and</strong> lend<str<strong>on</strong>g>in</str<strong>on</strong>g>g decisi<strong>on</strong>s we make.” 150In the Climate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples, <strong>on</strong>ly projects emitt<str<strong>on</strong>g>in</str<strong>on</strong>g>g more than100,000 t<strong>on</strong>s of CO 2warrant climate risk c<strong>on</strong>siderati<strong>on</strong>,which itself <str<strong>on</strong>g>in</str<strong>on</strong>g>volves no more than an assessment ofemissi<strong>on</strong>s <strong>and</strong> possible reducti<strong>on</strong> opti<strong>on</strong>s by the sp<strong>on</strong>sor.The recently published Climate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples ProgressReview by f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial sector accountant <strong>and</strong> c<strong>on</strong>sultantPricewaterhouseCoopers notes a lack of open discussi<strong>on</strong>around “guidance for <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment decisi<strong>on</strong>s where climatechange c<strong>on</strong>siderati<strong>on</strong>s are a crucial part of the process.” 151Inappropriate <strong>and</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g>adequate resp<strong>on</strong>ses to the scale of theproblemThe Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples <strong>and</strong> the Climate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples could bothbe used by <strong>banks</strong> to limit <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s relatedprojects if bank participati<strong>on</strong> was c<strong>on</strong>diti<strong>on</strong>al <strong>on</strong> certa<str<strong>on</strong>g>in</str<strong>on</strong>g>policy features. The f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g of tar s<strong>and</strong>s projects <strong>and</strong>companies operat<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s exploitati<strong>on</strong> dem<strong>on</strong>stratesnot <strong>on</strong>ly the lack of limitati<strong>on</strong>s imposed <strong>on</strong> lend<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>and</strong><str<strong>on</strong>g>in</str<strong>on</strong>g>vestments, but crucially that these <strong>banks</strong> are still will<str<strong>on</strong>g>in</str<strong>on</strong>g>gto put m<strong>on</strong>ey <str<strong>on</strong>g>in</str<strong>on</strong>g>to highly c<strong>on</strong>tested companies <strong>and</strong> projects.If <strong>banks</strong> can c<strong>on</strong>t<str<strong>on</strong>g>in</str<strong>on</strong>g>ue to fund companies that are actively<str<strong>on</strong>g>in</str<strong>on</strong>g>volved <str<strong>on</strong>g>in</str<strong>on</strong>g> ‘the most destructive project <strong>on</strong> earth’ <strong>and</strong> stillclaim compliance with the Equator or Climate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples,it is surely compell<str<strong>on</strong>g>in</str<strong>on</strong>g>g evidence that such pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples needurgently to be strengthened.Importantly, these Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples <strong>and</strong> wider discourse with<str<strong>on</strong>g>in</str<strong>on</strong>g>the f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial sector around climate change, display not afailure to resp<strong>on</strong>d to climate change – most acute <str<strong>on</strong>g>in</str<strong>on</strong>g> theClimate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples’ focus <strong>on</strong> ‘opportunities’ – but a refusalby many <strong>banks</strong> to accept resp<strong>on</strong>sibility for <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment56
choices that harm communities <strong>and</strong> ecosystems <strong>and</strong> driveclimate change, despite public statements to the c<strong>on</strong>trary.HSBC claimed <str<strong>on</strong>g>in</str<strong>on</strong>g> late 2008 that “The [tar s<strong>and</strong>s] policy isunder review.” 152 But <str<strong>on</strong>g>in</str<strong>on</strong>g> the subsequent year it proceededto underwrite loans, debt <strong>and</strong> equity worth more than $6billi<strong>on</strong> 153 to tar s<strong>and</strong>s related companies.<strong>and</strong> certa<str<strong>on</strong>g>in</str<strong>on</strong>g> biofuels. The development of these fuels hasthe potential for significant local envir<strong>on</strong>mental impacts<strong>and</strong> will accelerate <str<strong>on</strong>g>in</str<strong>on</strong>g>creases <str<strong>on</strong>g>in</str<strong>on</strong>g> global greenhouse gasemissi<strong>on</strong>s.” 158It does not need to be like this. There are examples of goodpractice which <strong>RBS</strong> <strong>and</strong> others can follow. Two signatoriesof the Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples have taken bold steps forwardby creat<str<strong>on</strong>g>in</str<strong>on</strong>g>g their own specific policies. German bank WestLB recently published a policy <strong>on</strong> restrict<str<strong>on</strong>g>in</str<strong>on</strong>g>g f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance forcoal-fired power generators, 154 <strong>and</strong> French bank Dexia setglobal best practice st<strong>and</strong>ards <strong>on</strong> releas<str<strong>on</strong>g>in</str<strong>on</strong>g>g Energy SectorGuidel<str<strong>on</strong>g>in</str<strong>on</strong>g>es stat<str<strong>on</strong>g>in</str<strong>on</strong>g>g the bank “will not provide f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g to…projects related to oil s<strong>and</strong>s or oil shales which adverselyimpact, <str<strong>on</strong>g>in</str<strong>on</strong>g> a n<strong>on</strong>-reversible manner, critical natural habitatsor freshwater resources used for supply for dr<str<strong>on</strong>g>in</str<strong>on</strong>g>k<str<strong>on</strong>g>in</str<strong>on</strong>g>gwater.” 155And <str<strong>on</strong>g>in</str<strong>on</strong>g> the <strong>UK</strong> The Co-operative Bank has l<strong>on</strong>g had a policynot to f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance any fossil fuel project, 156 <strong>and</strong> supportscampaigns to stop tar s<strong>and</strong>s extracti<strong>on</strong>. 157 One year agoit updated policies committ<str<strong>on</strong>g>in</str<strong>on</strong>g>g the bank to “extend itsexclusi<strong>on</strong> bey<strong>on</strong>d the extracti<strong>on</strong> <strong>and</strong> producti<strong>on</strong> of fossilfuels to those bus<str<strong>on</strong>g>in</str<strong>on</strong>g>esses engaged <str<strong>on</strong>g>in</str<strong>on</strong>g> the distributi<strong>on</strong>of fuels with a particularly high global-warm<str<strong>on</strong>g>in</str<strong>on</strong>g>g impact,particularly unc<strong>on</strong>venti<strong>on</strong>al oil sources (such as tar s<strong>and</strong>s)57
Endnotes1 Oil companies <strong>and</strong> their PR firms have <str<strong>on</strong>g>in</str<strong>on</strong>g>sisted <strong>on</strong> referr<str<strong>on</strong>g>in</str<strong>on</strong>g>gto Canadian tar s<strong>and</strong>s as ‘oil s<strong>and</strong>s’, as ‘tar’ is more readilyidentified as negative than ‘oil’. By plac<str<strong>on</strong>g>in</str<strong>on</strong>g>g these deposits<str<strong>on</strong>g>in</str<strong>on</strong>g> the same category as crude oil it becomes easier for thecompany to ga<str<strong>on</strong>g>in</str<strong>on</strong>g> acceptance <strong>and</strong> exp<strong>and</strong> its exist<str<strong>on</strong>g>in</str<strong>on</strong>g>g ‘sociallicence to operate’. In a similar way we will refer to ‘oil shale’as ‘tar shale’ <str<strong>on</strong>g>in</str<strong>on</strong>g> this report.2 ‘Canada’s Toxic <strong>Tar</strong> <strong>S<strong>and</strong>s</strong>: The Most Destructive Project <strong>on</strong>Earth’, Envir<strong>on</strong>mental Defence, February 2008. See: http://www.envir<strong>on</strong>mentaldefence.ca/reports/tars<strong>and</strong>s.htm3 C<strong>on</strong>venti<strong>on</strong>al <strong>and</strong> unc<strong>on</strong>venti<strong>on</strong>al oil are terms used <str<strong>on</strong>g>in</str<strong>on</strong>g> thisreport as a matter of c<strong>on</strong>venience, but are problematic <str<strong>on</strong>g>in</str<strong>on</strong>g>that like the <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry adopti<strong>on</strong> of ‘oil s<strong>and</strong>s’ <str<strong>on</strong>g>in</str<strong>on</strong>g>stead of ‘tars<strong>and</strong>s’, they gloss over the dangerous threats to the climatethat all forms of oil represent <strong>and</strong> the harmful impacts thatare often borne by local communities <strong>and</strong> ecosystems.4 ‘Are Canadian tar s<strong>and</strong>s the answer to our oil needs?’,M<strong>on</strong>ey Week, November 2007. See: http://www.m<strong>on</strong>eyweek.com/<str<strong>on</strong>g>in</str<strong>on</strong>g>vestments/commodities/are-canadiantar-s<strong>and</strong>s-the-answer-to-our-oil-needs.aspx5 Accord<str<strong>on</strong>g>in</str<strong>on</strong>g>g to unpublished data from the Ra<str<strong>on</strong>g>in</str<strong>on</strong>g>forest Acti<strong>on</strong>Network.6 ‘Unc<strong>on</strong>venti<strong>on</strong>al Oil – Scrap<str<strong>on</strong>g>in</str<strong>on</strong>g>g the bottom of the barrel?’,WWF, July 2009, see: http://assets.p<strong>and</strong>a.org/downloads/unc<strong>on</strong>venti<strong>on</strong>al_oil_f<str<strong>on</strong>g>in</str<strong>on</strong>g>al_lowres.pdf7 ‘Dirty Oil – How the tar s<strong>and</strong>s are fuell<str<strong>on</strong>g>in</str<strong>on</strong>g>g the globalclimate crisis’, Greenpeace Canada, September 2009. See:http://www.greenpeace.org/raw/c<strong>on</strong>tent/canada/en/documents-<strong>and</strong>-l<str<strong>on</strong>g>in</str<strong>on</strong>g>ks/publicati<strong>on</strong>s/tar_s<strong>and</strong>s_report.pdf8 Memor<strong>and</strong>um to Eddy Isaacs, Alberta Energy ResearchInstitute, from Joule Bergers<strong>on</strong>, University of Calgary,David Keith, University of Calgary, <strong>and</strong> Heather L. MacLean,University of Tor<strong>on</strong>to, July 16, 2009. Onl<str<strong>on</strong>g>in</str<strong>on</strong>g>e at:http://eipa.alberta.ca/media/39674/post%20workshop%20stakeholder%20<str<strong>on</strong>g>in</str<strong>on</strong>g>put.pdf9 Pemb<str<strong>on</strong>g>in</str<strong>on</strong>g>a Institute (2005) Oil <strong>S<strong>and</strong>s</strong> Fever, available athttp://www.oils<strong>and</strong>swatch.org/10 Nati<strong>on</strong>al Energy Board of Canada (2006) Canada’soil s<strong>and</strong>s: Opportunities <strong>and</strong> challenges to 2015 – anupdate, available at: http://www.neb-<strong>on</strong>e.gc.ca/clf-nsi/rnrgynfmtn/nrgyrprt/lsnd/pprtntsndchllngs20152006/pprtntsndchllngs20152006-eng.pdf11 Saudi Arabia has 260 billi<strong>on</strong> barrels accord<str<strong>on</strong>g>in</str<strong>on</strong>g>g to the USEnergy Informati<strong>on</strong> Adm<str<strong>on</strong>g>in</str<strong>on</strong>g>istrati<strong>on</strong> website, available athttp://www.eia.doe.gov/emeu/cabs/Saudi_Arabia/Oil.html58
12 ‘Parts per milli<strong>on</strong>’ – the means of measur<str<strong>on</strong>g>in</str<strong>on</strong>g>g thec<strong>on</strong>centrati<strong>on</strong> of atmospheric carb<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the atmosphere13 ‘A safe operat<str<strong>on</strong>g>in</str<strong>on</strong>g>g space for humanity’, J Rockström et al.,Nature 461, 472-475 (24 September 2009).14 ‘Well to wheel’ refers to a Life Cycle Analysis that takes<str<strong>on</strong>g>in</str<strong>on</strong>g>to account the total envir<strong>on</strong>mental impact from theextracti<strong>on</strong> of the fuel to the po<str<strong>on</strong>g>in</str<strong>on</strong>g>t it is used, with the wheelreferr<str<strong>on</strong>g>in</str<strong>on</strong>g>g to the example of use by car.15 Based <strong>on</strong> calculati<strong>on</strong>s made <str<strong>on</strong>g>in</str<strong>on</strong>g> the report ‘Unc<strong>on</strong>venti<strong>on</strong>alOil – Scrap<str<strong>on</strong>g>in</str<strong>on</strong>g>g the bottom of the barrel?’, WWF, July 2009,page 42. See: http://assets.p<strong>and</strong>a.org/downloads/unc<strong>on</strong>venti<strong>on</strong>al_oil_f<str<strong>on</strong>g>in</str<strong>on</strong>g>al_lowres.pdf16 Alberta Envir<strong>on</strong>ment, 2008.Water Diversi<strong>on</strong> by Oils<strong>and</strong>sM<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g Projects <str<strong>on</strong>g>in</str<strong>on</strong>g> 2007, September 200817 University of Alberta (2007), Runn<str<strong>on</strong>g>in</str<strong>on</strong>g>g out of Steam?available at http://www.ualberta.ca/ERSC/water.pdf18 Not all the extracti<strong>on</strong> sites have tail<str<strong>on</strong>g>in</str<strong>on</strong>g>gs p<strong>on</strong>ds – most ofthe SAGD projects d<strong>on</strong>’t.19 ‘Oil <strong>S<strong>and</strong>s</strong> Tail<str<strong>on</strong>g>in</str<strong>on</strong>g>gs <strong>and</strong> Directive 074,’ The Pemb<str<strong>on</strong>g>in</str<strong>on</strong>g>aInstitute, December 2009. See: http://www.pemb<str<strong>on</strong>g>in</str<strong>on</strong>g>a.org/pub/193320 ‘11 Milli<strong>on</strong> Litres a Day: The <strong>Tar</strong> <strong>S<strong>and</strong>s</strong>’ Leak<str<strong>on</strong>g>in</str<strong>on</strong>g>g Legacy’,Envir<strong>on</strong>mental Defence, December 2008. See: http://www.envir<strong>on</strong>mentaldefence.ca/reports/tars<strong>and</strong>s_dec_2008.html21 Cumulative Envir<strong>on</strong>mental Management Associati<strong>on</strong>,Review <strong>and</strong> Assessment of Envir<strong>on</strong>mental EffectsInformati<strong>on</strong> for Wildlife <strong>and</strong> Fish Indicators <str<strong>on</strong>g>in</str<strong>on</strong>g> the Regi<strong>on</strong>alSusta<str<strong>on</strong>g>in</str<strong>on</strong>g>able Development Strategy (RSDS) Study Area with<str<strong>on</strong>g>in</str<strong>on</strong>g>the Athabasca Oil <strong>S<strong>and</strong>s</strong> Regi<strong>on</strong> (AOSR). March 2003. p. 42.22 About the Beaver Lake Cree Nati<strong>on</strong>, The Coop BankWebsite. See: http://www.co-operativecampaigns.co.uk/toxicfuels/stop<strong>Tar</strong><strong>S<strong>and</strong>s</strong>Expansi<strong>on</strong>-about.php23 See: http://www.cpaws-edm<strong>on</strong>t<strong>on</strong>.org/CPAWS-NR-WoodCaribou.htm24 ‘Danger <str<strong>on</strong>g>in</str<strong>on</strong>g> the Nursery: Impact <strong>on</strong> birds of tar s<strong>and</strong>s oildevelopment <str<strong>on</strong>g>in</str<strong>on</strong>g> Canada’s Boreal forest’, NRDC <strong>and</strong> Pemb<str<strong>on</strong>g>in</str<strong>on</strong>g>aInstitute, September 2009. See: http://www.borealbirds.org/birdstars<strong>and</strong>s.shtml25 ‘Cancer rate <str<strong>on</strong>g>in</str<strong>on</strong>g> Fort Chipewyan cause for c<strong>on</strong>cern:medical exam<str<strong>on</strong>g>in</str<strong>on</strong>g>er’, CBC News, 10 March 2006. See http://www.cbc.ca/canada/edm<strong>on</strong>t<strong>on</strong>/story/2006/03/10/edfortchip20060310.html26 ‘High Cancer Rates Am<strong>on</strong>g Fort Chipewyan Residents’,59
Canadian Medical Associati<strong>on</strong> Journal News, February 2009.See: www.ecmaj.ca/cgi/rapidpdf/cmaj.090248v1.pdf27 ‘“British companies are kill<str<strong>on</strong>g>in</str<strong>on</strong>g>g us”: Indigenouscampaigners jo<str<strong>on</strong>g>in</str<strong>on</strong>g> Climate Camp to launch anti-<strong>Tar</strong> <strong>S<strong>and</strong>s</strong>acti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the <strong>UK</strong>’, Press Release, 18 August 2009, See:http://www.climatecamp.org.uk/press/2009/08/18/britishcompanies-are-kill<str<strong>on</strong>g>in</str<strong>on</strong>g>g-us-<str<strong>on</strong>g>in</str<strong>on</strong>g>digenous-campaigners-jo<str<strong>on</strong>g>in</str<strong>on</strong>g>climate-camp-to-launch-anti-tar-s<strong>and</strong>s-acti<strong>on</strong>-<str<strong>on</strong>g>in</str<strong>on</strong>g>-the-uk28 ‘A study of water <strong>and</strong> sediment quality as related topublic health issues, Fort Chipewyan, Alberta,’ Treel<str<strong>on</strong>g>in</str<strong>on</strong>g>eEcological Research, 2007. See: http://www.borealbirds.org/resources/tim<strong>on</strong>ey-fortchipwater-111107.pdf29 An NGO with ECOSOC Special C<strong>on</strong>sultative Status, <strong>and</strong>IITC affiliate the C<strong>on</strong>federacy of Treaty No. 6 First Nati<strong>on</strong>srepresent<str<strong>on</strong>g>in</str<strong>on</strong>g>g 18 First Nati<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> Alberta Canada30 ‘Jo<str<strong>on</strong>g>in</str<strong>on</strong>g>t Submissi<strong>on</strong> to the United Nati<strong>on</strong>s HumanRights Council <str<strong>on</strong>g>in</str<strong>on</strong>g> regard to the Universal Periodic ReviewC<strong>on</strong>cern<str<strong>on</strong>g>in</str<strong>on</strong>g>g Canada <str<strong>on</strong>g>in</str<strong>on</strong>g> February 2009’, September 8th 2008.31 ‘Indigenous people <str<strong>on</strong>g>in</str<strong>on</strong>g> legal challenge aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st oil firmsover tar s<strong>and</strong> project,’ Guardian, 26 February 2009, http://www.guardian.co.uk/envir<strong>on</strong>ment/2009/feb/26/activismcarb<strong>on</strong>-emissi<strong>on</strong>sMore <str<strong>on</strong>g>in</str<strong>on</strong>g>formati<strong>on</strong> <strong>on</strong> the Beaver LakeCree challenge can be found at http://www.raventrust.com/projects/beaverlakecree.html32 The Beaver Lake Cree Nati<strong>on</strong>’s legal challenge, The CoopBank Website. See: http://www.co-operativecampaigns.co.uk/toxicfuels/stop<strong>Tar</strong><strong>S<strong>and</strong>s</strong>Expansi<strong>on</strong>-legalCase.php33 The report ‘Energy Futures? Eni’s <str<strong>on</strong>g>in</str<strong>on</strong>g>vestments <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s<strong>and</strong> palm oil <str<strong>on</strong>g>in</str<strong>on</strong>g> the C<strong>on</strong>go Bas<str<strong>on</strong>g>in</str<strong>on</strong>g>’ can be downloaded fromhttp://www.boell.de/ecology/climate-energy-7110.html34 CIA World Factbook, 2009. “Country Comparis<strong>on</strong>:Oil Producti<strong>on</strong>”. See: https://www.cia.gov/library/publicati<strong>on</strong>s/the-worldfactbook/rankorder/2173rank.html.Current producti<strong>on</strong> is around 240,000 barrels per day. USEnergy Informati<strong>on</strong> Agency, September 2009.35 IMF, 2005. Country Report No. 05/39, Republic of C<strong>on</strong>go:Interim Poverty Reducti<strong>on</strong> Strategy Paper Progress Report,February 2005,36 http://www.eni.it/portal/search/search.do?keyword=risked&x=0&y=5&locale=en_IT&headersite=search37 C<strong>on</strong>go Bas<str<strong>on</strong>g>in</str<strong>on</strong>g> Forests –State of Forests 2008. Eds : deWasseige C., Devers D., from Marcken P., Eba’a Atyi R.,Nasi R. <strong>and</strong> Mayaux Ph., Office des publicati<strong>on</strong>s de l’Uni<strong>on</strong>européenne, 2009. http://www.cbfp.org/Stateoftheforest.html60
38 “Hardtalk”, BBC TV, 21 July 2009. See: http://www.bbc.co.uk/programmes/b00lt51039 Eni S.p.A Exporati<strong>on</strong> <strong>and</strong> Producti<strong>on</strong> Divisi<strong>on</strong>, 2009.Onshore C<strong>on</strong>go, Projet sablesbitum<str<strong>on</strong>g>in</str<strong>on</strong>g>eux des permis Tchikatanga et Tchikatanga-Makola,Rapport nº1: Etat d’avancement au 31 mars 2009, Secti<strong>on</strong>3:240 C<strong>on</strong>go is rated 43 out of 53 countries.World PeaceFoundati<strong>on</strong>, 2009. STRENGTHENINGAFRICAN GOVERNANCE:Index of African governance, October 2009, pp. 7-18. See:http://www.worldpeacefoundati<strong>on</strong>.org/africangovernance.html41 ‘Energy Futures: Eni’s <str<strong>on</strong>g>in</str<strong>on</strong>g>vestments <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s <strong>and</strong> palmoil <str<strong>on</strong>g>in</str<strong>on</strong>g> the C<strong>on</strong>go Bas<str<strong>on</strong>g>in</str<strong>on</strong>g>’, He<str<strong>on</strong>g>in</str<strong>on</strong>g>rich Boll Stiftung, 200942 Eni, 2009. Resp<strong>on</strong>ses to the FONDAZIONE CULTURALERESPONSABILITA’ETICA, July 26 200943 The Bloomberg Term<str<strong>on</strong>g>in</str<strong>on</strong>g>al is a computer system thatenables f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial professi<strong>on</strong>als to access the BloombergProfessi<strong>on</strong>al service through which users can m<strong>on</strong>itor <strong>and</strong>analyze real-time f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial market data movements <strong>and</strong>place trades.44 Underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g refers to the process by which <str<strong>on</strong>g>in</str<strong>on</strong>g>vestmentbankers raise <str<strong>on</strong>g>in</str<strong>on</strong>g>vestment capital from <str<strong>on</strong>g>in</str<strong>on</strong>g>vestors <strong>on</strong> behalfof corporati<strong>on</strong>s <strong>and</strong> governments that are issu<str<strong>on</strong>g>in</str<strong>on</strong>g>g securities(both equity <strong>and</strong> debt). Def<str<strong>on</strong>g>in</str<strong>on</strong>g>iti<strong>on</strong> taken from www.<str<strong>on</strong>g>in</str<strong>on</strong>g>vestopedia.com45 Accord<str<strong>on</strong>g>in</str<strong>on</strong>g>g to RAN’s Bloomberg analysis, the total figurefor loans underwritten by the <strong>banks</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> questi<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> the threeyear period was $64.82 billi<strong>on</strong>.46 See Appendix I.47 CBC News, C<strong>on</strong>ocoPhillips plans oils<strong>and</strong>s expansi<strong>on</strong>, CBCNews, M<strong>on</strong>ey, 19 January 2010.48 C<strong>on</strong>ocoPhillips Company, Canadian Oil <strong>S<strong>and</strong>s</strong>, http://www.c<strong>on</strong>ocophillips.com/EN/susdev/ourapproach/oils<strong>and</strong>s/Pages/<str<strong>on</strong>g>in</str<strong>on</strong>g>dex.aspx49 C<strong>on</strong>ocoPhillips Company, Susta<str<strong>on</strong>g>in</str<strong>on</strong>g>able Development,http://www.c<strong>on</strong>ocophillips.com/EN/susdev/Pages/<str<strong>on</strong>g>in</str<strong>on</strong>g>dex.aspx [accessed <strong>on</strong> 5 February 2009]50 ‘API Members’, http://www.api.org/resources/members/<str<strong>on</strong>g>in</str<strong>on</strong>g>dex.cfm [accessed 18.02.10]51 ‘C<strong>on</strong>ocoPhillips’ oppositi<strong>on</strong> to US climate bill is devious<strong>and</strong> dish<strong>on</strong>est’, The Guardian, 24 September 2009. See:http://www.guardian.co.uk/envir<strong>on</strong>ment/2009/sep/24/61
c<strong>on</strong>oco-phillips-us-climate-bill52 http://c<strong>on</strong>sumerenergyalliance.org/affiliates/53 Nick Snow, NPRA, others sue over California low-carb<strong>on</strong>fuel st<strong>and</strong>ard, Oil <strong>and</strong> Gas Journal, 4 Febuary 2010.54 Beaver Lake Cree Nati<strong>on</strong>, www.beaverlakecreenati<strong>on</strong>.ca55 Anders<strong>on</strong> et al, C<strong>on</strong>ocoPhillips <str<strong>on</strong>g>in</str<strong>on</strong>g> the Peruvian Amaz<strong>on</strong>,Amaz<strong>on</strong> Watch <strong>and</strong> Save America’s Forests, 2009, p 3. See:http://www.amaz<strong>on</strong>watch.org/c<strong>on</strong>oco2009.pdf56 ‘Everybody’s downstream II: <strong>Tar</strong> s<strong>and</strong>s, USA,’ Vue Weekly,November 2008. See: http://www.vueweekly.com/article.php?id=1027057 Jeffrey J<strong>on</strong>es, Syncrude duck deaths now triple <str<strong>on</strong>g>in</str<strong>on</strong>g>itial tally,Reuters Canada, Canada, 31 March 2009.58 Tom Kat<str<strong>on</strong>g>in</str<strong>on</strong>g>as, President <strong>and</strong> CEO Syncrude Canada Ltd.,Waterfowl Management Update, 31 March 2009.59 Jeffrey J<strong>on</strong>es, Syncrude duck deaths now triple <str<strong>on</strong>g>in</str<strong>on</strong>g>itialtally, Reuters Canada, Canada, 31 March 2009.60 See Appendix I.61 Enbridge Inc, System Profile & Statistics,www.enbridge.com/pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es/about [accessed <strong>on</strong> 5 February 2009]62 Enbridge Inc, Enbrigde Expansi<strong>on</strong> www.enbridgeexpansi<strong>on</strong>.com/expansi<strong>on</strong>[accessed <strong>on</strong> 5 February 2009]63 Lauren Krugel, Enbridge gets ready for ‘very busy year’ <str<strong>on</strong>g>in</str<strong>on</strong>g>oils<strong>and</strong>s after project announcements, The Canadian Press,3 Febuary 2010.64 Nathan V<strong>and</strong>erklippe, Native group calls for pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>eboycott, The Globe <strong>and</strong> Mail, Report <strong>on</strong> Bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess, 16 January2010.65 ‘The Enbridge Northern Gateway Pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e: Do BritishColumbians st<strong>and</strong> to ga<str<strong>on</strong>g>in</str<strong>on</strong>g>?’ West Coast Envir<strong>on</strong>mentalLaw, 2009. See: http://skeenawild.org/uploads/reports/Enbridge_outreach_materials.pdf66 Interviewed by Jess Worth from the forthcom<str<strong>on</strong>g>in</str<strong>on</strong>g>g issue ofthe New Internati<strong>on</strong>alist magaz<str<strong>on</strong>g>in</str<strong>on</strong>g>e focus<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong> tar s<strong>and</strong>s.67 Thoms<strong>on</strong> Reuters, Enbridge shuts oil pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e after leak,Reuters, 10 January 201068 David A. Levy, Pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es <strong>and</strong> Salm<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> Northern BritishColumbia:Potential Impacts, The Pemb<str<strong>on</strong>g>in</str<strong>on</strong>g>a Institute, 16October 200962
69 www.process<strong>on</strong>l<str<strong>on</strong>g>in</str<strong>on</strong>g>e.com.au “A typical 500 km pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>ewill leak <strong>on</strong> average 0.91 times per year.” Length of northerngateway pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e: 1170km, www.northerngateway.ca/.../northern-gateway-at-a-glance70 Geroge T. Baker, U.S. oil spill raises c<strong>on</strong>cerns aboutNorthern Gateway project from Alta. to B.C., AssociatedPress, 19 January 2010. “Northern Gateway spokesmanSteve Greenaway said Enbridge has 50 or 60 leaks a year –the average for the past two or three years. ‘The majority ofthose are c<strong>on</strong>ta<str<strong>on</strong>g>in</str<strong>on</strong>g>ed with<str<strong>on</strong>g>in</str<strong>on</strong>g> our facilities <strong>and</strong> those <str<strong>on</strong>g>in</str<strong>on</strong>g>cidentswould happen at a facility like a pump<str<strong>on</strong>g>in</str<strong>on</strong>g>g stati<strong>on</strong> where wemight have leaks as small as (eight litres),’ Greenaway said.”71 Greg Brown et al. Open<str<strong>on</strong>g>in</str<strong>on</strong>g>g the Door for Oil <strong>S<strong>and</strong>s</strong>Expansi<strong>on</strong>: The Hidden Envir<strong>on</strong>mental Impacts of theEnbridge Northern Gateway Pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>e, The Pemb<str<strong>on</strong>g>in</str<strong>on</strong>g>a Institue,December 2009, p 772 Factsheet December 2009: Open<str<strong>on</strong>g>in</str<strong>on</strong>g>g the Door for Oil<strong>S<strong>and</strong>s</strong> Expansi<strong>on</strong>, The Pemb<str<strong>on</strong>g>in</str<strong>on</strong>g>a Institute, December 200973 ‘St<strong>and</strong> beside us <str<strong>on</strong>g>in</str<strong>on</strong>g> defense of the l<strong>and</strong>: Wet’suwet’en,’Vancouver Media Coop, 12 Feb 2010. See: http://vancouver.mediacoop.ca/story/270874 See Appendix I.75 BP plc, Press releases, BP Enters Canadian Oil <strong>S<strong>and</strong>s</strong> withHusky Energy www.bp.com/genericarticle.do?categoryId=2012968&c<strong>on</strong>tentId=7038865 [Accessed 15 February 2010]76 ‘BP upsets Greenpeace with return to tar s<strong>and</strong>s’, TheTimes, 6 December 2007. See: http://bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess.times<strong>on</strong>l<str<strong>on</strong>g>in</str<strong>on</strong>g>e.co.uk/tol/bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess/<str<strong>on</strong>g>in</str<strong>on</strong>g>dustry_sectors/natural_resources/article3007256.ece77 David Ebner, Husky, BP help fuel oil s<strong>and</strong>s resurgence,Globe <strong>and</strong> Mail Update, 4 February 201078 Julie Crust, BP <str<strong>on</strong>g>in</str<strong>on</strong>g> talks over $1.2 billi<strong>on</strong> Canadian oil s<strong>and</strong>sdeal: report, Reuters, 14 February 201079 Fair Pensi<strong>on</strong>, Resoluti<strong>on</strong>s, Resoluti<strong>on</strong>s to BP <strong>and</strong> ShellAGMs <strong>on</strong> <strong>Tar</strong><strong>S<strong>and</strong>s</strong> www.fairpensi<strong>on</strong>s.org.uk/resoluti<strong>on</strong>s[Accessed 15 February 2010]80 Beaver Lake Cree Nati<strong>on</strong>, www.beaverlakecreenati<strong>on</strong>.ca[assessed <strong>on</strong> 5 February 2009]81 ‘EPA rejects permit for BP Whit<str<strong>on</strong>g>in</str<strong>on</strong>g>g ref<str<strong>on</strong>g>in</str<strong>on</strong>g>ery,’ November2009, Global Climate Law Blog. See: http://www.globalclimatelaw.com/2009/11/articles/climate-changelitigati<strong>on</strong>/epa-rejects-permit-for-bp-whit<str<strong>on</strong>g>in</str<strong>on</strong>g>g-ref<str<strong>on</strong>g>in</str<strong>on</strong>g>ery/82 ‘St<strong>and</strong> beside us <str<strong>on</strong>g>in</str<strong>on</strong>g> defense of the l<strong>and</strong>: Wet’suwet’en,’63
Vancouver Media Coop, 12 Feb 2010. See: http://vancouver.mediacoop.ca/story/270883 “Oil Shale In Jordan: Occurrences And InvestmentOpportunities”, Jordan Natural Resources Authority,http://www.oilshalesymposium.com/fileadm<str<strong>on</strong>g>in</str<strong>on</strong>g>/user_upload/documents/MADANAT.pdf84 “Jordan, Shell sign oil shale agreement”, Oil & GasJounal, March 25 2009 http://www.ogj.com/<str<strong>on</strong>g>in</str<strong>on</strong>g>dex/articledisplay/363124/articles/oil-gas-journal/volume-107/issue-20/regular-features/ogj-newsletter.html85 “Amman unlocks energy potential”, Perry Williams,MEED, 7 August 2009, http://www.meed.com/sectors/oil<strong>and</strong>-gas/amman-unlocks-energy-potential/2040154.article86 “Amman unlocks energy potential”, Perry Williams,MEED, 7 August 2009, http://www.meed.com/sectors/oil<strong>and</strong>-gas/amman-unlocks-energy-potential/2040154.article87 “Shell Explorati<strong>on</strong> & Producti<strong>on</strong> Unc<strong>on</strong>venti<strong>on</strong>al Oil –Jordan Oil Shale Project”, Shell, 07.04.2007, http://www.medemip.eu/Calc/FM/MED-EMIP/OtherDownloads/Docs_Related_to_the_Regi<strong>on</strong>/Oil Shale - Jourdan - April 2009/Day1/Shell_Explorati<strong>on</strong>_<strong>and</strong>_Producti<strong>on</strong>-Unc<strong>on</strong>venti<strong>on</strong>al_Oil-Joran_Oil_Shale_Project.pdf88 “Jordan: Nati<strong>on</strong>al Water Strategy 2008-2022” http://www.emwis.net/countries/fol749974/country045975/nati<strong>on</strong>al_program/thematicdirs/news/jordan-jd586b-waterstrategy-f<str<strong>on</strong>g>in</str<strong>on</strong>g>alized89 “Jordan’s Water Shortage”, The Hashemite K<str<strong>on</strong>g>in</str<strong>on</strong>g>gdom ofJordan, http://www.k<str<strong>on</strong>g>in</str<strong>on</strong>g>ghusse<str<strong>on</strong>g>in</str<strong>on</strong>g>.gov.jo/geo_env4.html90 “Water Pressure: Populati<strong>on</strong> Growth <strong>and</strong> the MiddleEastern <strong>and</strong> North African Water Crisis”, Lam<strong>on</strong>t-DohertyEarth Observatory http://www.ldeo.columbia.edu/edu/dees/V1003/webposter/2007%20powerpo<str<strong>on</strong>g>in</str<strong>on</strong>g>t/Water%20Pressure%20Presentati<strong>on</strong>.ppt91 “Jordan’s Water Shortage”, The Hashemite K<str<strong>on</strong>g>in</str<strong>on</strong>g>gdom ofJordan, http://www.k<str<strong>on</strong>g>in</str<strong>on</strong>g>ghusse<str<strong>on</strong>g>in</str<strong>on</strong>g>.gov.jo/geo_env4.html92 “Fact Sheet: Oil Shale Water Resources”, USADepartment of Energy, http://fossil.energy.gov/programs/reserves/npt/Oil_Shale_Water_Requirements.pdf “Water<strong>on</strong> the Rocks: Oil Shale Water Rights <str<strong>on</strong>g>in</str<strong>on</strong>g> Colorado”,Western Resource Advocates, 2009 http://www.westernresourceadvocates.org/l<strong>and</strong>/wotrreport/<str<strong>on</strong>g>in</str<strong>on</strong>g>dex.php93 “Nuclear energy producti<strong>on</strong> <strong>and</strong> water supply arestr<strong>on</strong>gly l<str<strong>on</strong>g>in</str<strong>on</strong>g>ked <str<strong>on</strong>g>in</str<strong>on</strong>g> Jordan”, The Jordan Times, 26 May 2009http://www.animaweb.org/en/actu-detail.php?actu=645764
94 “An Analysis of the Latest Research Commissi<strong>on</strong>ed byEcoPeace / FoEME <strong>on</strong> the Red Sea to Dead Sea C<strong>on</strong>duit<strong>and</strong> its Relevance to the World Bank Led Study”, May2007, http://www.foeme.org/<str<strong>on</strong>g>in</str<strong>on</strong>g>dex_images/d<str<strong>on</strong>g>in</str<strong>on</strong>g>amicas/publicati<strong>on</strong>s/publ75_1.pdf95 http://www.<str<strong>on</strong>g>in</str<strong>on</strong>g>dependent.co.uk/news/bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess/news/article1841928.ece96 http://www.guardian.co.uk/envir<strong>on</strong>ment/2009/mar/02/rbs-envir<strong>on</strong>mental-regulati<strong>on</strong>s97 Observer letters page, 29 November 2009. See: http://www.guardian.co.uk/theobserver/2009/nov/29/lettersmethad<strong>on</strong>e-pris<strong>on</strong>-weather-muslims98 http://www.publicati<strong>on</strong>s.parliament.uk/pa/cm200809/cmselect/cmenvaud/202/202.pdf99 ‘Governments likely to reta<str<strong>on</strong>g>in</str<strong>on</strong>g> stakes <str<strong>on</strong>g>in</str<strong>on</strong>g>f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial <str<strong>on</strong>g>in</str<strong>on</strong>g>stituti<strong>on</strong>s for 5-7 years, accord<str<strong>on</strong>g>in</str<strong>on</strong>g>g toPricewaterhouseCoopers LLP’, PricewaterhouseCooperspress release, November 2009. See: http://www.ukmediacentre.pwc.com/C<strong>on</strong>tent/Detail.asp?ReleaseID=3432&NewsAreaID=2100 http://www.hm-treasury.gov.uk/press_114_08.htm101 The policy can be viewed at http://www.ukfi.gov.uk/images/dynamicImages/<strong>UK</strong>FI_Susta<str<strong>on</strong>g>in</str<strong>on</strong>g>ability_policy_010210.pdf102 Andrew Smith, 26th November, http://www.publicati<strong>on</strong>s.parliament.uk/pa/cm200910/cmhansrd/cm091126/debtext/91126-0012.htm103 ‘Shift<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>S<strong>and</strong>s</strong>: How a chang<str<strong>on</strong>g>in</str<strong>on</strong>g>g ec<strong>on</strong>omy could burythe tar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry’, Greenpeace, PLATFORM & OilChange Internati<strong>on</strong>al, July 2009, p14. See: http://www.greenpeace.org.uk/media/reports/shift<str<strong>on</strong>g>in</str<strong>on</strong>g>g-s<strong>and</strong>s-howchang<str<strong>on</strong>g>in</str<strong>on</strong>g>g-ec<strong>on</strong>omy-could-bury-tar-s<strong>and</strong>s-<str<strong>on</strong>g>in</str<strong>on</strong>g>dustry104 (page 3) http://www.swissre.com/resources/7249eb804e42012db8a8bcb8626ab849-Publ09_FR_Globalisati<strong>on</strong>_en.pdf; http://www.nytimes.com/2010/01/27/bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess/energy-envir<strong>on</strong>ment/27lawsuits.html105 ‘Shift<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>S<strong>and</strong>s</strong>: How a chang<str<strong>on</strong>g>in</str<strong>on</strong>g>g ec<strong>on</strong>omy could bury thetar s<strong>and</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry’, Greenpeace, PLATFORM & Oil ChangeInternati<strong>on</strong>al July 2009. See: http://www.greenpeace.org.uk/media/reports/shift<str<strong>on</strong>g>in</str<strong>on</strong>g>g-s<strong>and</strong>s-how-chang<str<strong>on</strong>g>in</str<strong>on</strong>g>g-ec<strong>on</strong>omycould-bury-tar-s<strong>and</strong>s-<str<strong>on</strong>g>in</str<strong>on</strong>g>dustry106 http://www.energy.ca.gov/low_carb<strong>on</strong>_fuel_st<strong>and</strong>ard/107 ‘NPRA, others sue over California low-carb<strong>on</strong> fuel65
st<strong>and</strong>ard’, Oil <strong>and</strong> Gas Journal, 4 Feb 2010. See: http://www.ogj.com/<str<strong>on</strong>g>in</str<strong>on</strong>g>dex/article-display/8289160832/articles/oil-gasjournal/general-<str<strong>on</strong>g>in</str<strong>on</strong>g>terest-2/hse/2010/02/npra_-others_sue_over/QP129867/cmpid=EnlDailyFebruary42010.html108 Andrew Smith, 26th November, http://www.publicati<strong>on</strong>s.parliament.uk/pa/cm200910/cmhansrd/cm091126/debtext/91126-0012.htm109 http://www.iigcc.org/docs/PDF/Public/RevisedIIGCCInvestorStatement<strong>on</strong>ClimateChange.pdf110 http://www.goodwithm<strong>on</strong>ey.co.uk/assets/Uploads/Documents/Ethical-Policy-A4-doc-FINAL2.pdf111 Summary Presentati<strong>on</strong>, p. 10; Madagascar Oil,Madagascar Oil, August 2009, http://www.graft<strong>on</strong>resources.net/userfiles/file/Madagascar%20Oil%20Executive%20Summary%20August%202009.pdf, pp. 2-3112 Summary Presentati<strong>on</strong>, p. 18; Madagascar Oil, p. 4113 Summary Presentati<strong>on</strong>, p. 39; www.madagascaroil.com,‘Operati<strong>on</strong>al Update’; ‘Development Projects’; http://www.total.com/en/press/press-releases/c<strong>on</strong>sultati<strong>on</strong>-200524.html&idActu=1553114 Total <str<strong>on</strong>g>in</str<strong>on</strong>g> 2008, http://www.total.com/MEDIAS/MEDIAS_INFOS/866/FR/Total-2008-total-<str<strong>on</strong>g>in</str<strong>on</strong>g>-2008.pdf, p. 17115 http://whc.unesco.org/en/list/494/116 http://www.state.gov/r/pa/ei/bgn/5460.htm117 http://rru.worldbank.org/BESnapshots/Madagascar/default.aspx118 Madagascar Oil, p. 1119 Summary Presentati<strong>on</strong>, p. 7120 http://www.fool.co.uk/news/<str<strong>on</strong>g>in</str<strong>on</strong>g>vest<str<strong>on</strong>g>in</str<strong>on</strong>g>g/<str<strong>on</strong>g>in</str<strong>on</strong>g>vest<str<strong>on</strong>g>in</str<strong>on</strong>g>gstrategy/2010/02/09/dodg<str<strong>on</strong>g>in</str<strong>on</strong>g>g-brita<str<strong>on</strong>g>in</str<strong>on</strong>g>s-dividend-cutters.aspx121 ‘15% fall <str<strong>on</strong>g>in</str<strong>on</strong>g> share dividends leaves pensi<strong>on</strong>s exposed’,Guardian, 10 February, 2010. See: http://www.guardian.co.uk/m<strong>on</strong>ey/2010/feb/08/dividend-fall-exposes-pensi<strong>on</strong>s122 ‘Oil <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry faces a stark choice’, F<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial Times, 21September 2004. See: http://www.energybullet<str<strong>on</strong>g>in</str<strong>on</strong>g>.net/node/2211123 ‘The biggest envir<strong>on</strong>mental crime <str<strong>on</strong>g>in</str<strong>on</strong>g> history’,Independent, 10 December 2007. See: http://www.<str<strong>on</strong>g>in</str<strong>on</strong>g>dependent.co.uk/envir<strong>on</strong>ment/the-biggest-envir<strong>on</strong>mental-66
crime-<str<strong>on</strong>g>in</str<strong>on</strong>g>-history-764102.html124 http://blogs.ft.com/energy-source/2010/01/26/shellsceo-peter-voser-<str<strong>on</strong>g>in</str<strong>on</strong>g>terview-transcript-<strong>on</strong>-canadas-oil-s<strong>and</strong>sjobs-acquisiti<strong>on</strong>s-us-gas-iraq-nigeria-copenhagen-<strong>and</strong>more/125 ‘BP faces <str<strong>on</strong>g>in</str<strong>on</strong>g>vestor revolt over Canadian oil s<strong>and</strong>sproject’, Telegraph, 8 Feb 2010. See: http://www.telegraph.co.uk/f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance/newsbysector/energy/7182811/BP-faces<str<strong>on</strong>g>in</str<strong>on</strong>g>vestor-revolt-over-Canadian-oil-s<strong>and</strong>s-project.html126 The Oil & Gas Bank – <strong>RBS</strong> <strong>and</strong> the f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g of climatechange: March 2007, p6. Published by PLATFORM,BankTrack, Friends of the Earth Scotl<strong>and</strong>, new ec<strong>on</strong>omicsfoundati<strong>on</strong> <strong>and</strong> People & Planet. Onl<str<strong>on</strong>g>in</str<strong>on</strong>g>e: http://www.carb<strong>on</strong>web.org/documents/Oil_&_Gas_Bank.pdf127 Embedded emissi<strong>on</strong>s are the emissi<strong>on</strong>s that will resultfrom fossil fuels produced or brought to the market fromoperati<strong>on</strong>s f<str<strong>on</strong>g>in</str<strong>on</strong>g>anced through project f<str<strong>on</strong>g>in</str<strong>on</strong>g>ance. The bank’sproporti<strong>on</strong> is calculated accord<str<strong>on</strong>g>in</str<strong>on</strong>g>g to the proporti<strong>on</strong> of theproject funded.128 Equivalent estimated total for HSBC was $10.10 billi<strong>on</strong><strong>and</strong> for Barclays $5.79 billi<strong>on</strong>. <str<strong>on</strong>g>Cash<str<strong>on</strong>g>in</str<strong>on</strong>g>g</str<strong>on</strong>g> <str<strong>on</strong>g>in</str<strong>on</strong>g> <strong>on</strong> Coal, PLATFORMet. al p14.129 ‘Secrecy, woes, war over Ug<strong>and</strong>a’s oil’ http://www.<str<strong>on</strong>g>in</str<strong>on</strong>g>dependent.co.ug/<str<strong>on</strong>g>in</str<strong>on</strong>g>dex.php/cover-story/cover-story/82-cover-story/1171-secrecy-woes-war-over-ug<strong>and</strong>as-oil;‘Ug<strong>and</strong>a oil c<strong>on</strong>tracts give little cause for optimism’ http://www.guardian.co.uk/kat<str<strong>on</strong>g>in</str<strong>on</strong>g>e/kat<str<strong>on</strong>g>in</str<strong>on</strong>g>e-chr<strong>on</strong>icles-blog/2010/jan/18/ug<strong>and</strong>a-oil-profits130 ‘Tullow completes $2bn f<str<strong>on</strong>g>in</str<strong>on</strong>g>anc<str<strong>on</strong>g>in</str<strong>on</strong>g>g’ http://www.ft.com/cms/s/0/9a28a7dc-0ce0-11de-a555-0000779fd2ac.html;‘Tullow <str<strong>on</strong>g>in</str<strong>on</strong>g> £925 milli<strong>on</strong> share sale’ http://www.reuters.com/article/id<strong>UK</strong>TRE60Q4P420100127?type=companyNews131 ‘C<strong>on</strong>tracts Curse: Ug<strong>and</strong>a’s oil agreements place profitbefore people’ http://www.carb<strong>on</strong>web.org/documents/ug<strong>and</strong>a/Cursed_C<strong>on</strong>tracts_Ug<strong>and</strong>a_PLATFORM_CSCO_Tullow_Heritage_2010_February.pdf132 ‘Tullow Oil given c<strong>on</strong>tact to flare Ug<strong>and</strong>an gas’, http://www.guardian.co.uk/bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess/2010/feb/16/tullow-oilug<strong>and</strong>a-agreement133 Jacob May<str<strong>on</strong>g>in</str<strong>on</strong>g>do, <str<strong>on</strong>g>in</str<strong>on</strong>g> corresp<strong>on</strong>dence with Taimour Lay,PLATFORM researcher.134 ‘Treasury taken to court for <strong>RBS</strong> loans to Vedantaresources’ http://www.guardian.co.uk/bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess/2009/oct/18/rbs-vedanta-loan-court-case; ‘Church of Engl<strong>and</strong>sells Vedanta stake of human rights c<strong>on</strong>cerns’ http://www.67
guardian.co.uk/bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess/2010/feb/05/vedanta-niyamgiriorissa-church-of-engl<strong>and</strong>135 p.11, www.oil<strong>and</strong>gasuk.co.uk/templates/asset-relay.cfm?frmAssetFileID=623136 ‘Cairn’s Greenl<strong>and</strong> project moves forward’, 4.1.10,F<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial Times http://www.ft.com/cms/s/0/9a2a6e78-f902-11de-80dc-00144feab49a.html137 http://www.guardian.co.uk/bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess/marketforceslive/2009/dec/21/cairnenergy138 ‘Chang<str<strong>on</strong>g>in</str<strong>on</strong>g>g Banks,’ Ethical C<strong>on</strong>sumer, May/June 2009, p7139 ‘20 green heroes <strong>and</strong> villa<str<strong>on</strong>g>in</str<strong>on</strong>g>s’, New Statesman, 19November 2009. See: http://www.newstatesman.com/envir<strong>on</strong>ment/2009/11/mitsubishi-rbs-michael-oleary-d<strong>on</strong>al140 http://www.equator-pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples.com/pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples.shtml141 ibid.142 http://www.banktrack.org/manage/ems_dodgydeals/dealslist143 http://www.ifc.org/policyreview144 Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples, Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciple Three <strong>and</strong> Exhibit IV,http://www.equator-pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples.com/documents/Equator_Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples.pdf <strong>and</strong> http://www.ifc.org/ifcext/susta<str<strong>on</strong>g>in</str<strong>on</strong>g>ability.nsf/C<strong>on</strong>tent/PerformanceSt<strong>and</strong>ards145 Figures provided by Ra<str<strong>on</strong>g>in</str<strong>on</strong>g>forest Acti<strong>on</strong> Network146 http://www.banktrack.org/show/news/civil_society_groups_call_for_bold_steps_forward_with_equator_pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples147 ‘Bold Steps Forward - Towards Equator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples thatdeliver to people <strong>and</strong> the planet, A civil society call to theEquator Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples F<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial Instituti<strong>on</strong>s,’ January 2010. See:http://www.banktrack.org/download/bold_steps_forward_towards_equator_pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples_that_deliver_to_people_<strong>and</strong>_the_planet148 ‘Tighter loan structure puts brakes <strong>on</strong> ME projectf<str<strong>on</strong>g>in</str<strong>on</strong>g>ance’, Emirate Bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess, Feb 2010. http://www.bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess24-7.ae/Articles/2009/5/Pages/27052009/05282009_88305bd02c8347678893ab2b7c8b63e1.aspx149 http://www.theclimategroup.org/programs/theclimate-pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples/150 HSBC, Carb<strong>on</strong> Disclosure Project 3, p.7, search.cdproject.net/file-resp<strong>on</strong>se.asp?file=CDP3_HSBC_AQ_3213.pdf68
151 Climate Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples Progress Review January 2010, p.4,http://www.theclimategroup.org/_assets/files/Climate-Pr<str<strong>on</strong>g>in</str<strong>on</strong>g>ciples-Progress-Review.pdf152 Francis Sullivan, Head of Group Susta<str<strong>on</strong>g>in</str<strong>on</strong>g>ability, HSBChttp://www.reuters.com/article/idUSTRE4B143620081202153 See Appendix I.154 The policy can be seen at http://appsvr07.westlb.com/isearch/westlb/westlb_de/en/wlb/csr/Susta<str<strong>on</strong>g>in</str<strong>on</strong>g>ability/at/Documents/WestLB_Policy_for_Bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess_Activities-re_Coal_Fired_Power_Generati<strong>on</strong>.pdf155 Energy Sector Guidel<str<strong>on</strong>g>in</str<strong>on</strong>g>es, Dexia http://www.dexia.com/docs/2009/2009_susta<str<strong>on</strong>g>in</str<strong>on</strong>g>able/20081110_Energy_sector_guidel<str<strong>on</strong>g>in</str<strong>on</strong>g>es_<strong>UK</strong>.pdf156 http://www.goodwithm<strong>on</strong>ey.co.uk/assets/Uploads/Documents/Ethical-Policy-A4-doc-FINAL2.pdf157 http://www.co-operativecampaigns.co.uk/toxicfuels/158 http://www.bus<str<strong>on</strong>g>in</str<strong>on</strong>g>essgreen.com/bus<str<strong>on</strong>g>in</str<strong>on</strong>g>ess-green/news/2235543/op-calls-carb<strong>on</strong>-<str<strong>on</strong>g>in</str<strong>on</strong>g>tensive69
L<str<strong>on</strong>g>in</str<strong>on</strong>g>ks & ResourcesPLATFORMhttp://www.platforml<strong>on</strong>d<strong>on</strong>.orgWorld Development Movementhttp://www.wdm.org.ukPeople & Planethttp://people<strong>and</strong>planet.orgIndigenous Envir<strong>on</strong>mental Networkhttp://www.ienearth.orgRa<str<strong>on</strong>g>in</str<strong>on</strong>g>forest Acti<strong>on</strong> Networkhttp://ran.orgFriends of the Earth – Scotl<strong>and</strong>http://www.foe-scotl<strong>and</strong>.org.ukFriends of the Earth – Engl<strong>and</strong>, Wales <strong>and</strong> Northern Irel<strong>and</strong>http://www.foe.co.ukFriends of the Earth – Europehttp://www.foeeurope.orgIndigenous People L<str<strong>on</strong>g>in</str<strong>on</strong>g>kshttp://www.pipl<str<strong>on</strong>g>in</str<strong>on</strong>g>ks.orgNew Internati<strong>on</strong>alisthttp://www.new<str<strong>on</strong>g>in</str<strong>on</strong>g>t.orgBankTrackhttp://www.banktrack.orgFor more <str<strong>on</strong>g>in</str<strong>on</strong>g>formati<strong>on</strong> <strong>on</strong> tar s<strong>and</strong>sIndigenous Envir<strong>on</strong>mental Network <strong>Tar</strong> <strong>S<strong>and</strong>s</strong> Campaignhttp://www.ienearth.org/cits.htmlOil <strong>S<strong>and</strong>s</strong> Truth http://oils<strong>and</strong>struth.org<strong>UK</strong> <strong>Tar</strong> <strong>S<strong>and</strong>s</strong> Networkhttp://tars<strong>and</strong>s<str<strong>on</strong>g>in</str<strong>on</strong>g>focus.wordpress.com/tour/<strong>Tar</strong> <strong>S<strong>and</strong>s</strong> Blow http://tars<strong>and</strong>sblow.comDirty Oil <strong>S<strong>and</strong>s</strong> http://www.dirtyoils<strong>and</strong>s.orgFor more <str<strong>on</strong>g>in</str<strong>on</strong>g>formati<strong>on</strong> <strong>on</strong> <strong>RBS</strong> <strong>and</strong> fossil fuel f<str<strong>on</strong>g>in</str<strong>on</strong>g>anceThe Oyal Bank of Scotl<strong>and</strong> http://oyalbankofscotl<strong>and</strong>.comBank Secrets http://www.<strong>banks</strong>ecrets.orgPLATFORM – The Carb<strong>on</strong> Web http://www.carb<strong>on</strong>web.orgWDM – Clean The Bankshttp://www.wdm.org.uk/global-f<str<strong>on</strong>g>in</str<strong>on</strong>g>ancial-crisisP&P – Ditch Dirty Developmenthttp://people<strong>and</strong>planet.org/ditchdirtydevelopmentJo<str<strong>on</strong>g>in</str<strong>on</strong>g> the facebook group ‘Stop <strong>RBS</strong> Us<str<strong>on</strong>g>in</str<strong>on</strong>g>g Public M<strong>on</strong>ey toF<str<strong>on</strong>g>in</str<strong>on</strong>g>ance Climate Change’http://www.facebook.com/group.php?gid=2370015501FairPensi<strong>on</strong>s shareholder acti<strong>on</strong>http://www.count<str<strong>on</strong>g>in</str<strong>on</strong>g>gthecost.org.uk70
“Investment decisi<strong>on</strong>s taken now will have a majorimpact <strong>on</strong> current <strong>and</strong> future global greenhousegas emissi<strong>on</strong>s <strong>and</strong>, hence, <strong>on</strong> the world’s climate.– The Instituti<strong>on</strong>al InvestorsGroup <strong>on</strong> Climate Change 109”71
“We are see<str<strong>on</strong>g>in</str<strong>on</strong>g>g a terrify<str<strong>on</strong>g>in</str<strong>on</strong>g>gly high rate of cancer <str<strong>on</strong>g>in</str<strong>on</strong>g> Fort Chipewyan whereI live. We are c<strong>on</strong>v<str<strong>on</strong>g>in</str<strong>on</strong>g>ced that these cancers are l<str<strong>on</strong>g>in</str<strong>on</strong>g>ked to the <strong>Tar</strong> <strong>S<strong>and</strong>s</strong>development <strong>on</strong> our doorstep. It is shorten<str<strong>on</strong>g>in</str<strong>on</strong>g>g our lives. That’s why weno l<strong>on</strong>ger call it ‘dirty oil’ but ‘bloody oil’. The blood of Fort Chipewyanpeople is <strong>on</strong> these companies’ h<strong>and</strong>s.”– George Poitras, former chief of Mikisew Cree First Nati<strong>on</strong><strong>Tar</strong> s<strong>and</strong>s extracti<strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> Canada is devastat<str<strong>on</strong>g>in</str<strong>on</strong>g>g Indigenous communities, wildlife <strong>and</strong> vastareas of boreal forests, as well as be<str<strong>on</strong>g>in</str<strong>on</strong>g>g many times more carb<strong>on</strong>-<str<strong>on</strong>g>in</str<strong>on</strong>g>tensive to produce than‘c<strong>on</strong>venti<strong>on</strong>al’ oil.The higher oil prices <str<strong>on</strong>g>in</str<strong>on</strong>g> recent years have meant that it’s become a more attractive prospectfor oil companies to exp<strong>and</strong> their operati<strong>on</strong>s <str<strong>on</strong>g>in</str<strong>on</strong>g> the costly process of obta<str<strong>on</strong>g>in</str<strong>on</strong>g><str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>and</strong> process<str<strong>on</strong>g>in</str<strong>on</strong>g>gthe thick bitumen <str<strong>on</strong>g>in</str<strong>on</strong>g>to a usable form. It’s estimated that the <str<strong>on</strong>g>in</str<strong>on</strong>g>dustry is look<str<strong>on</strong>g>in</str<strong>on</strong>g>g for a capital<str<strong>on</strong>g>in</str<strong>on</strong>g>vestment of $120-$220 billi<strong>on</strong> over the next 20 years to build the new pipel<str<strong>on</strong>g>in</str<strong>on</strong>g>es, m<str<strong>on</strong>g>in</str<strong>on</strong>g>es,ref<str<strong>on</strong>g>in</str<strong>on</strong>g>eries <strong>and</strong> upgraders that are necessary to susta<str<strong>on</strong>g>in</str<strong>on</strong>g> the boom.This report looks at the role that <strong>UK</strong> <strong>banks</strong> are play<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> provid<str<strong>on</strong>g>in</str<strong>on</strong>g>g the necessary capital, <strong>and</strong>how <strong>RBS</strong>, which is 84% owned by the <strong>UK</strong> public, has been the bank the most heavily <str<strong>on</strong>g>in</str<strong>on</strong>g>volved<str<strong>on</strong>g>in</str<strong>on</strong>g> underwrit<str<strong>on</strong>g>in</str<strong>on</strong>g>g loans to companies engag<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>in</str<strong>on</strong>g> tar s<strong>and</strong>s extracti<strong>on</strong>.www.platforml<strong>on</strong>d<strong>on</strong>.org72