McKibben’s Divestment Tour – Brought to You by Wall Street [Part IX of an Investigative Report] [Mainstreaming Sustainable Capitalism]

The Art of Annihilation

April 30, 2015

Part nine of an investigative series by Cory Morningstar

Divestment Investigative Report Series [Further Reading]: Part I • Part II • Part III • Part IV • Part V • Part VI • Part VII • Part VIII • Part IX • Part X • Part XI • Part XII • Part XIII

 

“Sometimes people hold a core belief that is very strong. When they are presented with evidence that works against that belief, the new evidence cannot be accepted. It would create a feeling that is extremely uncomfortable, called cognitive dissonance. And because it is so important to protect the core belief, they will rationalize, ignore and even deny anything that doesn’t fit in with the core belief.” — Frantz Fanon, Black Skin, White Masks

 

Prologue: A Coup d’état of Nature – Led by the Non-Profit Industrial Complex

It is somewhat ironic that anti-REDD climate activists, faux green organizations (in contrast to legitimate grassroots organizations that do exist, although few and far between) and self-proclaimed environmentalists, who consider themselves progressive will speak out against the commodification of nature’s natural resources while simultaneously promoting the toothless divestment campaign promoted by the useless mainstream groups allegedly on the left. It’s ironic because the divestment campaign will result (succeed) in a colossal injection of money shifting over to the very portfolios heavily invested in, thus dependent upon, the intense commodification and privatization of Earth’s last remaining forests, (via REDD, environmental “markets” and the like). This tour de force will be executed with cunning precision under the guise of environmental stewardship and “internalizing negative externalities through appropriate pricing.” Thus, ironically (if in appearances only), the greatest surge in the ultimate corporate capture of Earth’s final remaining resources is being led, and will be accomplished, by the very environmentalists and environmental groups that claim to oppose such corporate domination and capture.

Beyond shelling out billions of tax-exempt dollars (i.e., investments) to those institutions most accommodating in the non-profit industrial complex (otherwise known as foundations), the corporations need not lift a finger to sell this pseudo green agenda to the people in the environmental movement; the feat is being carried out by a tag team comprised of the legitimate and the faux environmentalists. As the public is wholly ignorant and gullible, it almost has no comprehension of the following:

1. the magnitude of our ecological crisis
2. the root causes of the planetary crisis, or
3. the non-profit industrial complex as an instrument of hegemony.

The commodification of the commons will represent the greatest, and most cunning, coup d’état in the history of corporate dominance – an extraordinary fait accompli of unparalleled scale, with unimaginable repercussions for humanity and all life.

Further, it matters little whether or not the money is moved from direct investments in fossil fuel corporations to so-called “socially responsible investments.” The fact of the matter is that all corporations on the planet (and therefore by extension, all investments on the planet) are dependent upon and will continue to require massive amounts of fossil fuels to continue to grow and expand ad infinitum – as required by the industrialized capitalist economic system.

The windmills and solar panels serve as beautiful (marketing) imagery as a panacea for our energy issues, yet they are illusory – the fake veneer for the commodification of the commons, which is the fundamental objective of Wall Street, the very advisers of the divestment campaign.

Thus we find ourselves unwilling to acknowledge the necessity to dismantle the industrialized capitalist economic system, choosing instead to embrace an illusion designed by corporate power.

+++

 

Blood & Gore Generation: of Commodification, Privatization, and Indoctrination

“Between 2008 and 2011 the company had raised profits of nearly $218 million from institutions and wealthy investors. By 2008 Gore was able to put $35 million into hedge funds and private partnerships through the Capricorn Investment Group, a Palo Alto company founded by his Canadian billionaire buddy Jeffrey Skoll, the first president of eBay Inc.” — Forbes, November 3, 2013

 

“Civil society has a central role in accelerating the transition towards Sustainable Capitalism. NGOs must take a 360-degree approach to the process of mainstreaming Sustainable Capitalism, realising their ability to influence stakeholders in every part of the business ecosystem. NGOs must engage with investors, companies, regulators and policy makers to encourage the rapid and effective adoption of Sustainable Capitalism through campaigns, lobbying efforts and partnerships with the private sector.” — Sustainable Investment Paper, Generation, February 15, 2012

For an accurate grasp of the true objective behind a national/international marketing campaign (the Keystone Pipeline campaign is another fine example), one is wise to bypass the non-profit industrial complex (NPIC) in its entirety and go directly to researching the investment firms and corporations who are set to increase market share and reap billions in profits via such campaigns. Campaigns funded by foundations (set up by the oligarchs) serve and protect the system with well-oiled precision. Billions of dollars funnelled into the NPIC laundering machine, on which corporations would be taxed otherwise, have never been such a sound and secure investment.

Perhaps the most telling and revealing of the world the NPIC wishes us to embrace is the investment firm recommended by 350.org et al: Generation. [PDF: A Complete Guide to Reinvestment] Under the section “What types of reinvestment exist?, Mutual Funds,” the top two examples listed (four in total) are 1) Generation Investment Management Climate Solutions Fund II and 2) Generation Investment Management Credit Fund.

“We are advocates for Sustainable Capitalism…. The first, which is our principal platform for activity, is a partnership model whereby we collaborate with individuals, organizations, and institutions in our effort to accelerate the transition to a more sustainable form of capitalism. In addition, the Foundation also supports select grant-giving related to the field of Sustainable Capitalism, engagement with the local communities where we operate, and an employee gift-matching program.” — Generation Foundation

Generation is an independent, private, owner-managed partnership with offices in London and New York. The firm was co-founded in 2004 by Al Gore and David Blood. From 1985 to 1999, Blood served in various positions at Goldman Sachs Group, Inc. From 1999 to 2003, Blood served as a Co-Chief Executive Officer and Managing Director of Goldman Sachs Asset Management. Blood served as a director of Goldman Sachs International. Blood sits on many boards including his director position held at NewForests (“establishes US presence in May 2007 to capitalise on growing investment interest in environmental markets in the US”). Its investment strategies focus on forests, timberland, and environmental markets; “NewForests have a limited number of private accounts clients to develop particular project and policy expertise in reducing emissions from deforestation and degradation (REDD) in other countries.” (REDD and Biomass). Blood also holds a position as director of The Nature Conservancy, the revolving door for Goldman Sachs executives. [Blood’s full bio].

Mark Ferguson, Peter Harris, Peter Knight and Colin Mark Le Duc are also co-founders of Generation Investment. Both Ferguson and Harris held prestigious positions at Sachs. Al Gore is Co-Founder, Chairman, and Partner of The Climate Solutions Fund of which Marc Le Duk is also a co-founder.

Generation is largely an institutional investment management firm, operating at the wholesale level (major pension funds, foundations, etc). The corporatocracy and covertness behind such investing is apparent when one considers the fact that law restricts the amount of information that firms (that focus on institutional clients) can provide, to “ensure that the general public is not enticed into investing in unsuitable and overly complex products”. [1]

“Mainstreaming Sustainable Capitalism by *2020 will require independent, collaborative and voluntary action by companies, investors, government and civil society, which we hope to accelerate by advancing the discourse on the economic benefits of sustainability.” — Sustainable Investment Paper, Generation, February 15, 2012

[*David Blood: “…we say in our paper 2020, the truth is we have a view that it really needs to happen by 2015 – otherwise we are increasingly in trouble.” Breakthrough Capitalism Forum lecture, May 29, 2012]

A key area of focus is to ensure the capitalist system is kept intact; to establish the acceptable parameters of the “market revolution.” In particular, in concise language, Blood and Gore make it exceptionally clear that alternatives to the suicidal capitalist system need not, should not and will not be considered:

“Capitalism has great strengths and is fundamentally superior to any other system for organising economic activity. It is more efficient in allocating resources and in matching supply and demand. It is demonstrably effective in wealth creation. It is more congruent with higher levels of freedom and self-governance than any other system. It unlocks a higher fraction of the human potential with ubiquitous, organic incentives that reward hard work, ingenuity, and innovation. These strengths are why it is at the foundation of every successful economy.

 

“Critically, capitalism has proven itself to be adaptable and flexible enough to fit the specific needs of particular countries. Capitalism comes in many forms, from that practised in the US to the very different model that has been adopted within communist China. The causes and consequences of these variations are, of course, significant – but the more important fact remains: the mainstream debate is about how to practise capitalism not whether we should choose between capitalism and some other system.” [Emphasis added] [Source]

Generation Investment is acknowledged for its contribution in the May 2013 41-page document Institutional Pathways to Fossil-Free Investing in collaboration with Phil Aroneanu and Jamie Henn of 350.org, Bob Massie of the New Economics Institute and others interconnected within this campaign. The sponsors listed are 350.org, Responsible Endowments Coalition (REC), Sustainable Endowments Institute and Tellus Institute. [2]

“By Year Five of the simulation, the portfolio has become fossil free and its five-percent targeted reinvestment has been allocated, across a variety of asset classes, as shown in Figure 4. Half of the target (2.5 percent of the entire portfolio) can be re-allocated to sustainable, fossil-free domestic and international public equities, through existing strategies with investment managers such as Generation Investment Management, Impax Asset Management, Portfolio 21, and Trillium Asset Management, among others.” — Institutional Pathways to Fossil-Free Investing

Video: Ceres lecture featuring Bill McKibben with David Blood:

https://vimeo.com/66321774

Generation’s key action is “to accelerate mainstreaming Sustainable Capitalism.” Insight into the coming corporate capture / commodification of the commons via the global implementation of “payments for ecosystem services” (PES) is made clear under the Current Initiatives section where it is stated: “Until there are policies that establish a fair price for widely understood externalities, academics and financial professionals should strive to quantify the impact of stranded assets and analyze the subsequent implications for assessing investment opportunities.” [Emphasis added.]

The top three sectors of focus for Generation are key to how the 21^st century is being shaped: 1) Agricultural and Forestry Solutions (think genetic engineering, biomass burning, land grabs, and commodification of forests/REDD 2); Behaviour Change (think Avaaz/Purpose); 3) Bio-based Fuels, Plastics and Chemicals. (See all key sectors of focus that have been publicly disclosed.) (Note that 350.org et al are now publicly campaigning on/promoting the false solution of biofuels.)

Three such partnerships (publicly disclosed) include World Resources Institute, Natural Resource Defense Council (both represented on the Ceres board of directors), and The Climate Reality Project (formerly identified as Alliance for Climate Protection). Under Memberships and Initiatives, we find Ceres, the Ceres Investor Network on Climate Risk (INCR), Roundtable on Sustainable Palm Oil, and many others.

“We provide business-building expertise, access to Generation’s investment, corporate, NGO and sustainability networks and a long term strategic perspective and commitment to our portfolio companies.” [Source]

And the icing on the cake:

“Five percent of the profitability of the firm is allocated to The Generation Foundation, which will support global non-profit sustainability initiatives.”

Gore and Blood identify five key imperatives that “have the potential to accelerate the transition to Sustainable Capitalism”. The first imperative identified is the need to identify and incorporate risks from stranded assets.

Enter Carbon Tracker.

Carbon Tracker

Ruse: noun 1. an action intended to mislead, deceive, or trick; stratagem

Utilizing research from the Potsdam Institute [3], Carbon Tracker made the case for “unburnable carbon” in the July 2011 seminal report “Unburnable Carbon: are the world’s financial markets carrying a carbon bubble?” The report suggested that the top 100 coal and 100 oil-and-gas companies had a combined value in 2011 of $7.42 trillion, much of it based on reserves that can never be used. Such reserves are one example considered by Tracker that have the potential to become stranded assets – thereby exposing investors to risk. The tracker employs (and supplies) the so-called “carbon budget” as a measure (and apparatus) as to how much more carbon the world can continue to “safely” burn.

“The concept of ‘stranded assets‘ gained prominence last year when another report by the Carbon Tracker Initiative calculated that 60-80% of the world’s coal, oil, and gas reserves would be ‘unburnable’ if the world leaders agreed to emissions reductions to limit warming to 2°C…. In essence, any price on carbon or emissions reduction policy could cut oil demand enough to strand any number of a company’s proven reserves.” — Desmog Blog, September 13, 2014

Carbon Tracker’s second “unburnable carbon” report (Unburnable Carbon 2013: Wasted Capital and Stranded Assets (PDF) is co-authored with LSE’s (London School of Economics) Grantham Research Institute. The Institute has been financed/supported in part by the Global Green Growth Institute (GGGI) through a grant for US$2.16 million (£1.35 million) to fund several research project areas from 2012 to 2014. LSE’s Grantham Research Institute membership includes (but is not limited to) Fred Krupp, president of Environmental Defense Fund; Vikram Singh Mehta, chairman of Shell Companies (India); Carter Roberts, president and CEO of WWF (US); and Sir Evelyn de Rothschild, chairman of EL Rothschild Ltd.

The aim of the Grantham Research Institute is to strengthen the analytical and empirical underpinnings of the ‘green growth’ concept in relation to both developing and developed countries.” [Source] [GGGI Partners] Yvo de Boer is the Director-General of GGGI [People]. Prior to joining the global accountancy firm KPMG in 2010, Mr. de Boer led the international process to respond to climate change in the role of Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC) from 2006 to 2010.

Carbon Tracker could very much be considered the key stratagem, foundation, glue and more importantly, a veil or even a shield for both the divestment campaign (global in scale), and the so-called carbon “budget.” Reports, data and papers released by this foundation-financed think tank are pumped through the channels of power, the result being the legitimization of concepts that have no basis in reality if it were not for the non-profit industrial complex, in tandem with media, ensuring no one states – or even notices – the obvious, that the emperor has no clothes.

“A vain Emperor who cares about nothing except wearing and displaying clothes hires two swindlers who promise him the finest, best suit of clothes from a fabric invisible to anyone who is unfit for his position or ‘hopelessly stupid.’ The Emperor’s ministers cannot see the clothing themselves, but pretend that they can for fear of appearing unfit for their positions and the Emperor does the same. Finally the swindlers report that the suit is finished, they mime dressing him and the Emperor marches in procession before his subjects. The townsfolk play along with the pretense, not wanting to appear unfit for their positions or stupid. Then a child in the crowd, too young to understand the desirability of keeping up the pretense, blurts out that the Emperor is wearing nothing at all and the cry is taken up by others. The Emperor cringes, suspects the assertion is true, but continues the procession.” [Source]

In this instance, the emperor is the oligarchy as a collective, the ministers are the sycophants that comprise the NPIC, and the townsfolk – not wanting to appear stupid or undeserving.

Reports such as Carbon Tracker’s serve to legitimate, normalize and thus sanction the already capitalist-sanctioned “activism” that deliberately assists in pushing forward particular policies and agendas already conceptualized (years and even decades in advance) by the funders and the elite.

Consider who finances the work of the Carbon Tracker. “The work of Carbon Tracker has been made possible by the vision and openness to innovation shown by organisations such as the following”: The Rockefeller Brothers Fund, Bloomberg Philanthropies, The Tellus Mater Foundation, Generation Foundation, Wallace Global Fund, The European Climate Foundation, The Growald Family Fund, The Joseph Rowntree Charitable Trust ,The Polden Puckham Charitable Foundation, The Ashden Trust, Zennstrom Philanthropies, MAVA Foundation, The Velux Foundation, and The Grantham Foundation. After you consider the “who” behind the financing, consider “why” the financing.

Wallace Global Fund refers to its interest in funding Carbon Tracker as “Support for a collaboration between climate activists and financial analysts seeking to align the action of world capital markets with the reality of global warming.”

“The ability to deal with people is as purchasable a commodity as sugar or coffee and I will pay more for that ability than for any other under the sun.” — John D. Rockefeller

Millions of dollars funnelled through foundations into institutions, who in turn churn out reports, serve a pivotal purpose. Slick reports, marketing and PR build security (and acceptance/acquiescence amongst the populace) for the investment strategies belonging to the endowments (as well as the trustees) of the very foundations such institutions/NGOs are funded by. This is nothing more than polished PR at arm’s length intended/financed to promote said investments – as well as divestments. The appearance of an independent think tank evokes trust in the public realm. The oligarchs know how to manage, shape and modify behavioural change amongst the public. We are a public of rampant consumption and continued devolution, by design. There is little doubt that the billions of dollars the elite have pumped into the NPIC must quantify as one of the best long-term investments they have ever made.

The concepts of carbon budget, stranded assets and carbon asset bubbles have indeed gained traction with many people. This is in part due to the repetitive messaging of familiar language and unthreatening implications (via a massive injection of funding; Rockefeller et al must be pleased), the précis being that a person of privilege and monetary wealth can simply move his/her money from coal or Exxon and re-invest it into “clean” investments such as massive solar projects in deliberately impoverished Africa that will export the energy to those who already have it in Europe, geothermal, biomass projects that burn the remaining Earth’s forests and whole cultures into ashes, or REDD, which commodifies Earth’s forests for the even further expansion of capital. Pick your poison wisely. In less than 30 minutes we have “saved the world” and we still retain our wealth and privilege. Yet in reality, nothing has changed, the system demands continued growth, clean energy demands fossil fuels and vast resources from an already depleted planet, and the world continues to warm. To divest and feel no consequences is far preferred (by the 1% creating 50% of all global GHG emissions) than actual/tangible divesting from vacations (flying), personal automobiles, clothes dryers, steaks, lawn-mowers, leaf-blowers, Starbucks, etc. etc. etc. – including iPhones, iPods, iEverthing, with emphasis on the word “I.”

“The investor effort, called the Carbon Asset Risk (CAR) initiative, is being coordinated by Ceres and the Carbon Tracker initiative, with support from the Global Investor Coalition on Climate Change.” — Ceres Press Release, October 24, 2013

The organizations behind the quickly-emerging “new” economy are all very much interwoven, as are the players and key people. James Leaton, Research Director for the Carbon Tracker Initiative (2010 onward), was recently featured at the May 1-2, 2013 Ceres conference with 350.org’s McKibben and Bob Massie (former president and CEO of the New Economy Coalition). Leaton was also featured at the INCR Annual Meeting at the Ceres conference titled The 21st Century Investor: Ceres Blueprint for Sustainable Investing conference which took place April 30, 2013.

Carbon Tracker is identified as one of the key NGOs engaged with the US Divest-Invest Coordinating Committee (USCC). The combination of a need to be both an environmentalist and a capitalist (definitely not in that order) in the organization is represented in the following job posting:

As You Sow job description, February 13, 2015: “Organizations in the Coalition: 350.org, Responsible Endowments Coalition, Intentional Endowments Network, Hip-Hop Caucus, Energy Action Coalition, Service Employees International Union (SEIU), Black Mesa Water Coalition, Carbon Tracker, California Student Sustainability Coalition, Divest-Invest Philanthropy, Divest-Invest Individual, Fenton Communications, Mayors Innovation Project, Coalition for Environmentally Responsible Economies (CERES), New Economy Coalition, GreenFaith, Healthcare without Harm, Sustainable Initiatives at Partners HealthCare, As You Sow, or other organizations engaged with Divest-Invest.”

Key staff at Carbon Tracker demonstrate that a vital prerequisite to being hired/chosen by the Tracker is vast experience in carbon markets.

Prior to his role at Carbon Tracker, Leaton was a sustainability and climate change consultant at PricewaterhouseCoopers, focusing on the financial sector, advising blue chip clients on risks and “opportunities.” Prior to PricewaterhouseCoopers, Leaton spent five years at WWF as a senior policy advisor, focusing on the links between energy and finance.

“‘Assets are already being written down due to increasing competition between energy sources, air quality standards being introduced to reduce health impacts, and measures to reduce carbon pollution combining to change the energy landscape,’ said James Leaton, Research Director at Carbon Tracker. ‘Avoiding high cost, high carbon projects which are failing to deliver a return on capital will improve shareholder returns.'” — Ceres Press Release, October 24, 2013

Mark Fulton is currently an adviser to the Carbon Tracker Initiative and Senior Fellow at Ceres. He is a recognized economist (of 35 years) and market strategist at leading financial institutions including Citigroup, Salomon Bros and County Natwest. Prior to this role, Fulton was head of research at Deutsche Bank Climate Change Advisors at Deutsche Bank (from 2007 to 2012). He is currently a member of the Capital Markets Climate Initiative, UK Department of Energy and Climate Change. From 2010 to 2012 he was co-chair of the United Nations Environment Programme (UNEP) Finance Initiative Climate Change Working Group. In 2011 and 2012, Fulton served on the technical committee of the UN Secretary-General’s Sustainable Energy for All.

“‘Many of the responses investors have received from the companies thus far acknowledge that there is a legitimate risk issue around carbon reserves, and companies are open to continued engagement from the investor community to determine the scope,’ said Mark Fulton, a member of the Carbon Tracker’s Advisory Board and a Ceres adviser.” — Ceres Press Release, October 24, 2013

Anthony Hobley has been Chief Executive Officer of the Carbon Tracker Initiative since February 2014. Hobley played a key role in helping design the UK’s pilot emissions trading scheme and also in developing key aspects of the EU ETS (Emissions Trading System). Hobley was seconded to Norton Rose Fulbright’s Sydney office between 2010 and 2012 where he was heavily involved in the development of the emerging carbon and clean energy markets in Australia and Asia. He was a key figure behind the creation of the business advocacy group Businesses for a Clean Economy, a coalition of businesses arguing for a price on carbon. Anthony was also behind the creation of the business group Climate Markets & Investment Association where he is the current president. He also sits on the boards of the Verified Carbon Standards Association and on the Advisory Board to the Climate Bonds Initiative. [Source | Full Bio]

The Carbon Tracker advisory board is made up of representatives of carbon market institutions.

The board includes: Nick Robins (co-director of the UNEP Green Finance Enquiry), Lois Guthrie (CEO of the Carbon Disclosure Standards Board), Tessa Tennant (founder and board member, Association for Sustainable and Responsible Investment in Asia – ASrIA), Ben Caldecott (programme director, Smith School of Enterprise and the Environment, University of Oxford) Catherine Howarth (CEO at ShareAction), James Stacey (head of sustainable finance strategy at Earth Capital Partners), Jemma Green (previously VP of sustainable finance at JP Morgan), Meg Brown (previously director of climate and sustainability research at Citi Investment Research), Stanislas Dupré (founder & director at 2° Investing Initiative), Bevis Longstreth (previously commissioner of the United States Securities and Exchange Commission (SEC), Laura Sandys (member of parliament for South Thanet), Mark Lewis (senior sustainability analyst and co-ordinator of energy transition & climate change research at Kepler Cheuvreux), and Neil Morisetti (director of strategy at UCL Science, Technology, Engineering and Public Policy Department, previously special representative for climate change at the UK Foreign Secretary.)

Ben Caldecott’s elite standing in the interlocking directorate is extensive. Identified as a British environmentalist, economist, and commentator, he serves on the advisory board of Carbon Tracker, and as a trustee of the Green Alliance think tank. He serves as head of government advisory for Bloomberg New Energy Finance, director of the Stranded Assets Programme at the Smith School of Enterprise and the Environment, adviser to The Prince of Wales’ International Sustainability Unit, academic visitor at the Bank of England, and visiting fellow at the University of Sydney. He is head of European Policy at Climate Change Capital, directing the CCC think tank and advising CCC funds and clients on the development of policy-driven markets. Caldecott has previously worked as research director for environment and energy at the think tank Policy Exchange. Caldecott serves on the advisory network of the Natural Capital Declaration, which is key (discussed at length further in this report). Caldecott has worked in parliament and for a number of different UK government departments and international organisations, including UNEP and the Foreign & Commonwealth Office (FCO).

Caldecott has been instrumental in building government support for “clean coal.” Thus, UK leaders are all calling for an end to unabated coal – code for carbon capture and sequestration/storage.

Above: Business Summit on Climate Leadership 2011 Speakers. Ben Caldecott – Head of European Policy, Climate Change Capital, second in from far right (Flickr, Climate Group)

Carbon capture and sequestration (CSS) and enhanced oil recovery (EOR) (which uses the sequestered CO2 to recover more oil out of depleted oil fields) is a critical component of the “new economy.” CCS is to gain acceptance as a vital component of the new “low carbon” economy where societies can continue production/burning of both coal and oil under the guise of “emissions reduction measures.” In tandem with the quiet proliferation of biomass (supported by the NPIC) and other false solutions, this economy has already begun:

“In the Weyburn oil field in Saskatchewan, Canada – where CO2 from the Dakota Gasification Company’s coal gasification plant in Beulah, ND is piped north to pump into the oil field, buying 25 more years of oil production – 2.8 times more CO2 would be released from all of the extra oil they expect to produce than the amount they ‘sequester’ (ignoring reports of leakage). In the Permian Basin (TX/NM), 47% of the amount of CO2 pumped into the ground is re-released by burning the extra oil produced (that would otherwise stay in the ground).” [Source]

Stephen Tindale, former executive director of Greenpeace UK, is another “environmentalist” in support of carbon capture and storage. In a series on his website Climate Answers , the commentary CCS: What the EU Needs to Do – Part 1, with Nick Horler, chief executive of ScottishPower, is supported by Caldecott. Both Tindale and Caldecott have contributed significant language and concepts to the discourse on climate since this 2010 piece. Here we witness just one aspect of the many realms of genius behind the marketing/branding of the instrumental stranded/bubble/budget language that has “changed everything.” Coal in particular, has been identified and condemned by both the media and NPIC as a coming stranded asset. Thus coal is “saved” from stranded status when CCS is deployed; the “carbon bubble” refrains from bursting; and the amount of “unburnable carbon” in the “carbon budget” reduced.

As with all the shaping of our shared futures by the elite, the pathway to CCS is clear in the 2008 Green Alliance paper, A Last Chance for Coal, with contributions from Ben Caldecott while at the Policy Exchange think tank. The paper notes that it is critical Europe’s commitment to CCS be realized before 2020; 12 short years away from the paper’s publication date. The year 2020 is a critical date of vast significance – a recurring deadline for all environmental market solutions to be in place.

While the front figures in the “movement” such as 350’s Bill McKibben and Naomi Klein repeat and inflate the language of stranded assets, carbon bubbles, budgets, divestment and renewable energy, the issue of CCS is rarely mentioned or touched upon, while the most critical issue that has ever faced humanity, the financialization of nature, via the global implementation of “payments for ecosystem services,” receives no attention whatsoever. It’s not that these appointed “leaders” don’t understand the “this changes everything” world that the oligarchs have been working toward for decades. They do. Consider that Caldecott, as a key figure in the delivering/marketing of mainstream finance to “clean energy” partnered with 350.org for the 2014 “Stranded Down Under Tour” in Australia.

“It appears to us that divestment is the bait and engagement is the fishing rod – divestment is vital in hooking people’s attention, and the engagement tools and analysis is [sic] essential to reel the capex [capital expenditures] in. Investors and NGOs now need to have the patience to catch enough fish.” — Carbon Tracker Website

Most, if not all organizations and investment firms promoting or affiliated with the divestment campaign have vested interests in the expansion of false solutions such as CCS, biomass, carbon credits/trading and environmental markets – all clamouring to cash in on the promise of the most unparalleled wealth opportunity of the 21^st century.

The Investor Expectations: Oil and Gas Companies was developed by the IIGCC with support from Ceres’ INCR, IGCC and AIGCC. It builds on the Carbon Asset Risk (CAR) Initiative, through which 75 investors managing more than $3 trillion in assets engaged with 45 of the world’s largest fossil fuel companies. The CAR initiative is coordinated by Ceres and Carbon Tracker, with support from IIGCC and IGCC, which lead engagement with fossil fuel companies in Europe and Australia/New Zealand respectively.

The Carbon Asset Risk (CAR) Initiative: “In the long term, investors want to see fossil fuel companies adapt, remaining successful by: Focusing on fewer projects at the low end of the cost curve; Returning capital to investors; and Diversifying business toward cleaner, lower-carbon energy sources, including renewables, energy efficiency and carbon capture and storage (CCS).”

Divest-Invest

“The transition to a low-carbon economy will be the most significant economic change in history. It will be deeper, more fundamental than the industrial revolution, and faster than the technology revolution. And it’s going to happen in the next five to 10 years…. The leadership of Divest-Invest is important, the leadership at 350.org.” — David Blood, Generation Investment, Divest-Invest Transcript, Fenton Communications, Wallace Global Fund, and Inst. for Policy Studies, September 22, 2014

 

The common definition of a Divest-Invest commitment is a pledge to divest from the top fossil fuel companies within five years and to move those assets into clean energy investments. As the movement has spread, participants have tailored the timing and sequence of commitments to their particular circumstances. The working group has recognized the variety of these circumstances and has designed this process to allow institutions to meet both their fiduciary and moral responsibilities. — Arabella Advisors, Measuring the Global Fossil Fuel Divestment Movement, September 19, 2014

The global divestment campaign targets 200 of the world’s largest publicly traded fossil-fuel corporations: 100 from oil and gas and 100 from coal. These are ranked according to the size of their proven reserves. The Measuring the Global Fossil Fuel Divestment Movement report (September 19, 2014) discloses the following:

“The working group relied upon self-reported data from individual commitments to determine the number and scope of divest-invest pledges. Individuals agreed to a standard pledge, and most completed a brief survey. The standard pledge (available at http://divestinvest.org/individual) states:

1. I will make no new investments in the top 200 oil, gas, and coal companies [as defined by the Carbon Tracker 200].
2. I will sell my existing assets tied to these oil, gas, and coal investments within three to five years.
3. I will invest in the new energy economy.

It is critical to note the language and the framing of the divest-invest campaign (which isn’t necessarily the same as divestment at large). To begin, the term “new” (in #3) refers to both the “new economy” and, in this instance, the “new energy economy,” which is strategic. As discussed in 2014 by Avaaz/Purpose Inc. co-founder Jeremy Heimans, the former term “green” (as in “green economy”) is, for all marketing intents and purposes, dead. For clarity, individuals agree to not invest in the top 100 public coal, oil and gas companies listed by the “Carbon Tracker 200.” All other investments appear to be fair game: biofuel/biomass, nuclear, the military-industrial complex/weapons industry, the chemical industry, factory farming, aviation, BNSF, pornography… it’s all up for grabs. One can move their investments from Exxon over to Lockheed Martin & make a killing – both literally and figuratively. Not only is there a plethora of fuel-intensive stock options/investments, those divesting are given a full five years to follow through on their commitment “to meet both their fiduciary and moral responsibilities,” meaning that a corporation/entity can announce their “commitment,” have 350.org greenwash their persona, and then five years later, when staff positions, economic opportunities, etc. have changed, toss it out with the bath water if they wish to do so. Further, it is not enough to simply divest – one must agree, most importantly, to “invest in the new energy economy.” Thus, the idea of starving the corporate stranglehold, even if only in a limited way, is effectively out the window.

Oil services companies, pipeline companies, refiners, holding facility companies, etc. are all fair game for those wishing to divest. Yet the reality is that none of these industries/companies make their big money from shareholders or stock markets. These companies make the bulk of their profits by booking reserves and selling their product directly to market. Further, most of the capital for the shale gas and oil revolution comes from private equity. “Big oil” has not been at the centre of it. Rather, the centre is comprised of smaller independent and private companies. The more one understands the industries and the business, the more one comes to the realization of what a hoax the “divest-invest” campaign actually is.

Divest-Invest Philanthropy

The Divest-Invest NGO is comprised of three pillars: 1) Divest-Invest Philanthropy [4], 2) Divest-Invest Individual and 3) the Divest-Invest Advisors and Allies.

In her role as CEO of Phoenix Global Impact, Jenna Nicholas is consulting with the World Bank on social impact bonds; she is coordinating the Divest-Invest: Philanthropy Initiative, appointed by the Wallace Global Fund as of March 2014. Nicholas is an associate to Calvert Special Equities and sits on the advisory groups of the Impact Hub DC, Nexus Global Youth Summit and High Water Women. [Full Bio]

Allies and advisors of the Divest-Invest campaign are to ensure success: “Advisors and allies keep core campaign staff informed on various financial, business, community and legal trends relevant to the pledge and/or steps for follow-through…. In collaboration with Divest-Invest Philanthropy and many other movement partners and allies, we are accelerating the transition to a sustainable and equitable economy. [Source]

Such groups are popping up everywhere. Whether there are dozens, hundreds or even thousands has yet to be ascertained. But one thing is certain. They have been tactically preparing for the “new economy” windfall.

Consider the 2° Investing Initiative [2°ii], a multi-stakeholder think tank working to align the financial sector with 2°C climate goals: “Our association consists of more than 30 member organizations and 60 individual members, most of whom are serving in financial institutions (banks, asset management, private equity, brokerage, etc.). Some other members are experts from different fields (consulting, accounting, extra-financial analysis, etc.), either researchers (economy, climate economics), or public servants. Two of our members are Members of the European Parliament (former Ministers of Environment in their respective countries).”

Members:

Peers and links within this particular interlocking directorate include the Carbon Tracker Initiative (which coined the term “carbon bubble”), Long Finance, Finance Watch, OECD, Climate Change Capital, UNEP-FI (a partnership between the United Nations Environment Programme and financial institutions), Asset Owners Disclosure Project, Climate Policy Initiative, E3G (Third Generation Environmentalism), CDC Climat, McKinsey Global Institute, Climate Bonds Initiative, BNEF (Bloomberg), GABV (Global Alliance for Banking on Values), BankTrack and The Institutional Investors Group on Climate Change (IIGCC is a Ceres initiative).

Over and over again we witness (yet ignore) the interlocking directorate: NGOs, executive board members, advisors, fellows, CEOs, politicians, bankers and media – all working together for the expansion of capital markets. And although the divestment campaign appears fresh out of nowhere, the NGOs assigned to capture the public’s trust, waiting in the wings, did not simply fall from the summer sky. The organizing and deployment is precise, strategic, seductive and global in scale.

As one investigates the history and financing of the divestment campaign, one begins to recognize specific organizations that appear/overlap more frequently than others, for example, Ceres, Ceres entities, United Nations organizations, 350.org and Carbon Tracker. These groups lead in shaping the public opinion and providing the discourse required to implement already conceived/awaiting policies that serve hegemonic interests (expansion of capital markets), while simultaneously securing, strengthening and insulating capitalism itself.

Investment Terminology

In the July 7, 2014 article, Why the Fossil Fuel Divestment Movement is a Farce, the author sheds much needed light on investment terminologies and information that are little understood by the average citizen:

“Notice the words ‘publicly traded.’ In other words, fossil fuel divestment would target only major corporations that are listed on the stock market. But pension funds and endowments, the entities largely targeted by the 350.org campaign, invest hundreds of billions of dollars in privately traded securities, such as hedge funds and private equity – vehicles that are invested at all levels of the fossil fuel economy. (In particular, hedge funds and private equity have been found to be the key financial backers of the fracking boom.) Were the Massachusetts divestment bill to pass, state pension funds would invariably still be invested in the fossil fuel economy.”

Graphic: Public companies represent a small piece of the pie; $7 trillion in fossil fuel reserves as opposed to private and national companies that represent three times this market size. Source

The cautionary reference to hedge funds is significant. Note that Blood & Gore’s Generation Investment is a hedge fund. Also note the tight relationship between 350.org founder Bill McKibben, hedge fund billionaire Tom Steyer, the US Democratic Party and the crème de la crème of the establishment Left (to be discussed later in this report). On May 6, 2014 CNN reported that the top 25 hedge fund managers took home $21 billion among them.

The author [Why the Fossil Fuel Divestment Movement is a Farce] continues:

“The divestment campaign argues that 200 publicly traded fossil fuel companies dominate the fossil fuel exploration market. But they ignore that such companies frequently depend on private equity and hedge funds for financing new investments when large banks are uninterested in taking on further risk. The public can rarely (if ever) verify that these types of arrangements take place, even if it is a teacher attempting to verify what her pension fund is doing with her money.

 

“The divestment campaign argues that 200 publicly traded fossil fuel companies dominate the fossil fuel exploration market. But they ignore that such companies frequently depend on private equity and hedge funds for financing new investments when large banks are uninterested in taking on further risk. The public can rarely (if ever) verify that these types of arrangements take place, even if it is a teacher attempting to verify what her pension fund is doing with her money.

 

“Pension funds and endowments have not always invested in the private market. In the 1980s and before, in fact, they were almost exclusively invested in publicly traded securities. Laws such as the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of 1940 allowed the public to verify how the companies in which pension funds and endowments were investing used their funds and provided transparency to investors in order to prevent fraudulent activity.

 

“By focusing only on publicly traded securities, the fossil fuel divestment campaign ignores the corporate misdeeds of a sector that holds billions of dollars of investments in a dirty energy economy.

 

“The same is not possible with privately traded alternative investments, which have been on the rise since the early 1990s. (It is difficult to ascertain why exactly pension funds and endowments have funneled assets into private markets, as there is little evidence that they perform any better than stocks and bonds and a great deal of evidence that they are far riskier. Private market money managers are notorious as great salesmen, and a series of pay-to-play scandals have implicated some of the largest hedge funds and private equity firms.) Regardless, today pension funds and endowments are by far the largest investors in hedge funds and private equity.” [Emphasis added]

Above: Private and institutional investors represent Carbon Tracker’s largest/key target audience.

The author continues, citing conflict of interest:

“Further compromising the campaign is its questionable line of funding. It has received at least $350,000 from Jeremy Grantham, a hedge fund manager who oversees more than $500 million in assets for public pension funds in Massachusetts. According to a report from Inside Philanthropy, 350.org also receives funding from billionaire hedge fund manager Tom Steyer. (The organization declined to state exactly how much money it has received from Steyer and Grantham.)

 

“Farallon Capital Management, which Steyer founded, has major investments at all levels of the fossil fuel economy. While he is no longer at the helm, during his leadership it pursued major deals in fossil fuels, as a recent report from Reuters showed. In fact, the firm had been a target of student activists before he began funding them.

“Grantham, for his part, argued in an interview with The Guardian that he felt that student activists should ‘stamp their feet’ to get their university endowments to divest from fossil fuels ‘because they can do that.’ With his firm’s significant investments in the fossil fuel economy – according to first quarter 2014 filings, $1.2 billion in Chevron, $570 million in ExxonMobil and $240 million in Monsanto – he, apparently, cannot.” [Emphasis added]

Jeremy Grantham apparently encourages others to stamp their feet and divest while his firm, decidedly, does not. He is not alone. Following the media saturation of September 22, 2014 that hailed the Rockefeller Brothers Fund (RBF) divestment as a historic world event, few reported that RBF had decided to hang on to their Exxon stocks. [This is discussed at length later in this report.]

Here it is important to recall that Carbon Tracker is affiliated with London School of Economics Grantham Research Institute. Jeremy Grantham co-founded the Grantham Foundation for the Protection of the Environment in 1997. Funding was given to both Imperial College London and London School of Economics to establish the Grantham Institute for Climate Change and the Grantham Research Institute on Climate Change and the Environment. In 2011, the Grantham Foundation for the Protection of the Environment donated $1 million to both the Sierra Club and Nature Conservancy, and $2 million to the Environmental Defense Fund. The Foundation has also provided support to Greenpeace, the WWF and the Smithsonian. [Source] As noted earlier in this report, London School of Economics Grantham Research Institute membership includes (but is not limited to) Fred Krupp, president of Environmental Defense Fund; Vikram Singh Mehta, chairman of Shell Companies (India); Carter Roberts, president and CEO of WWF (US); and Sir Evelyn de Rothschild, chairman of EL Rothschild Ltd.

In the July 10, 2014 rebuttal, Why a Movement is Never a Farce, the author frames the divestment campaign as a Gandhi-esque movement. Yet there are items that an astute citizen must consider distinct red flags: “Endorsements have come from such unexpected places as the World Bank, and even former Treasury Secretary and Goldman Sachs’ COO Henry Paulson this past week.” Given the references to Gandhi and endorsements that “have come from such unexpected places as the World Bank,” it is of interest to note that Martin Luther King’s first trip to India to study Gandhi was paid for by the RJ Reynolds (tobacco empire) family (funneled through Quaker group American Friends Service Committee.) In a letter, an AFSC official writes that the trip seems to have been designed as a photo-op to “build up King as a world figure, and to have this buildup recorded in the US.”

The author then writes: “It is a sign of divestment’s power that it has gained endorsements from the likes of Wall Street, but we shouldn’t fool ourselves into trusting either Wall Street or the White House to show us the way to a new economy. Accepting endorsement, however, is not the same as taking direction; fossil fuel divestment is a grassroots movement led by students, not billionaires, and is firmly committed to justice and solidarity. I know because myself and countless other students and recent alumni – with the vital support of nonprofits – have poured the last few years of our lives into building it. Call that misdirected, sure, but don’t call it Astroturf.”

Yet it’s not “a sign of divestment’s power that it has gained endorsements from the likes of Wall Street” – the divestment campaign is Wall Street. 350.org (with McKibben at the helm) developed the divestment campaign in consultation with Wall Street. The author is, however, correct that the purpose of the divestment campaign is very much “to show us the way to a new economy.” As 21^st century lambs of the oligarch, well-intentioned students are utilized, used and misdirected via tactical manipulation.

Steyer, Bloomberg, Soros & the Democrats

Photo: People’s Climate March, 2014. Bill McKibben (350.org founder) with Tom Steyer, hedge fund billionaire and founder of Generation Next

“It’s a big club, and you ain’t in it.” — George Carlin

An example of so-called progressive media amplifying Carbon Tracker’s disapproval of coal use in China (Carbon Tracker report: “Energy Access: why coal is not the way out of energy poverty”) appears straightforward. As does the slide presentation published October 29, 2014 by Carbon Tracker: Is Coal a Sinking Ship? Yet perhaps it isn’t.

Consider that the demand for coal in both China and India is going to do nothing but grow. Then consider this: In an effort to support its own mines and workers and economy, China is in the process of cutting all purchases of imported coal as rapidly as possible (April 14, 2015: “China’s coal imports decline by 42 percent during first quarter…. The international coal market is saddled with excessive supplies for the moment….”). India, still trying to provide basic power to citizens, is also rejecting further dependence on international coal. On November 12, 2014 the Power and Coal Minister of India, Piyush Goyal, stated “in the next two or three years we should be able to stop imports of thermal coal.” This position has been endorsed by India’s Prime Minister. This certainly puts a damper on U.S. plans to ship an additional 100 million tons of coal per year to Asia via three proposed coal ports – an aggravating deterrent that must also extend to Australia which plans to open mega coal mines in Queensland’s Galilee Basin, as well as the world’s largest port (at Abbot Point right in the middle of the Great Barrier Reef) for export to China. Not only does India have more coal than Australia, India has 57 times more labourers.

A “no coal for China” anthem as sung by the non-profit industrial complex can also be interpreted as de facto promotion of natural gas/fracking, nuclear, etc. Consider the Bloomberg media coverage (referencing Carbon Tracker) in the article covering China moving from coal to gas. As Bloomberg (Bloomberg Philanthropies being a financial backer of Carbon Tracker) has been financing the fracking boom, one might question if there is a coordinated effort between Michael Bloomberg and former Treasury Secretary Hank Paulson who, along with billionaire Tom Steyer’s Next Generation, have launched the Risky Business Project.

From the Risky Business website:

“Launched in October, 2013, the Risky Business Project focuses on quantifying and publicizing the economic risks from the impacts of a changing climate.

 

“Risky Business Project co-chairs Michael R. Bloomberg, Henry Paulson, and Tom Steyer tasked the Rhodium Group, an economic research firm that specializes in analyzing disruptive global trends, with an independent assessment of the economic risks posed by a changing climate in the U.S. Rhodium convened a research team co-led by climate scientist Dr. Robert Kopp of Rutgers University and economist Dr. Solomon Hsiang of the University of California, Berkeley. Rhodium also partnered with Risk Management Solutions (RMS), the world’s largest catastrophe-modeling company for insurance, reinsurance, and investment-management companies around the world. The team’s complete assessment, along with technical appendices, is available at Rhodium’s website, climateprospectus.rhg.com.”

The Risky Business Project is a joint partnership of Bloomberg Philanthropies, the Paulson Institute, and TomKat Charitable Trust (established in 2009 with funding from Tom Steyer and Kat Taylor), one of many financiers of 350.org (see image below). Additional support for the project has been provided by the Skoll Global Threats Fund, the Rockefeller Family Fund, the McKnight Foundation, the Joyce Foundation, John D. and Catherine T. MacArthur Foundation, and the Heising-Simons Foundation. Staff support for the Risky Business Project is provided by Next Generation, also co-founded by Steyer.

Bloomberg Philanthropies also invests in oil and gas via Willet Advisors. Logic dictates that due to its holdings/investments in the gas/fracking industry, Bloomberg will therefore highlight any victories against dirty coal – including faux ones. Thus although the divestment campaign is successful in the stigmatization of coal corporations, the label of corporate pariah does not extend to carbon sequestration schemes, industrial biomass and a score of other false solutions that will comprise the bulk share of the “clean” economy. Rather, such false solutions are grossly labeled as victorious and sought after by the appointed “leaders” of the environmental “movement.” Consider the re-tweet of the article Shell’s Global Warming Strategy Is Psychopathic & Paranoid, Says Former UK Climate Envoy by Bill McKibben in which the gist of the argument is why Shell is dragging their feet on carbon capture and sequestration. Further consider that the Bureau of Land Management’s plan to convert Nevada’s Pinyon Forests to biomass that threatens ancient rituals is backed by partner organizations such as Sierra Club, in partnership with Barrick Gold and Barrick Corp. This is just one instance of biomass facilities planned or already in operation under the guise of “clean” energy and/or carbon neutrality.

Steyer must be considered king hedge fund bourgeois extraordinaire with close ties to those in power. Time magazine, May 22, 2014: “So when Barack Obama appeared at Tom Steyer’s San Francisco home for a fundraiser last year, the President had to know there would be an ask. The 56-year-old Steyer is a hedge-fund billionaire and a major-league Democratic donor.”

August 6, 2014, Politico:

“Billionaire Tom Steyer joined fellow liberal billionaire George Soros for a lunchtime meeting with Obama adviser John Podesta at the White House on Feb. 20, according to White House visitor logs. That was just days after Steyer pledged to spend $100 million on the midterm elections. Steyer also met with Podesta on March 31, along with NextGen Climate Action COO Josh Fryday and Denver attorney Ted White, managing partner of Fahr LLC, an ‘umbrella entity’ for Steyer’s various organizations.

 

“According to records, Steyer has visited the White House on at least 12 occasions since 2009 for meetings with top-level administration officials including Rahm Emanuel, Bill Daley, Pete Rouse, Heather Zichal, Jon Carson and David Lane. Those records only cover through April, and Steyer is known to have attended a June 25 meeting with Podesta, John Holdren, Valerie Jarrett and others to discuss his ‘Risky Business’ report on climate change.”

Exploiting climate change destruction to garner votes for the Democrats is par for the course within the NPIC; exploiting climate change destruction to further unprecedented “climate wealth opportunities” is not only the best game in town – it’s the best game on the industrialized planet.

 

Next: Part X

 

[Cory Morningstar is an independent investigative journalist, writer and environmental activist, focusing on global ecological collapse and political analysis of the non-profit industrial complex. She resides in Canada. Her recent writings can be found on Wrong Kind of Green, The Art of Annihilation, Counterpunch, Political Context, Canadians for Action on Climate Change and Countercurrents. Her writing has also been published by Bolivia Rising and Cambio, the official newspaper of the Plurinational State of Bolivia. You can follow her on twitter @elleprovocateur]

 

EndNotes:

[1] Source: “M. Mills, personal communication, 2010.” In Howell, Robert. “The Challenge of Sustainability for the Financial Sector.” International Journal of Environmental, Cultural, Economic and Social Sustainability.

[2] The Forum for Sustainable and Responsible Investment (US) also serves to promote the divestment campaign in the “Education Center” where one finds “Fossil Fuels, Divestment & Reinvestment.” Within this section, under other resources, the link titled Institutional Pathways to Fossil Free Investing brings us back to the May 2013 41-page document Institutional Pathways to Fossil-Free Investing [emphasis added].

[3] “Thanks to the Carbon Bubble report, we now have some better numbers to help us grapple with that question. Based on research by the Potsdam Institute, the report suggests that if the world wants an 80% chance of staying within the 2ºC limit, we should avoid emitting more than 565 gigatonnes (GT) of CO₂ by 2050. That equates to just one-fifth of the world’s total proven fossil fuel reserves, which contain enough carbon to produce a massive 2,795GT of CO₂, the report estimates.”

[4] The DivestInvest Philanthropy steering committee and working group members include: Ellen Dorsey, Ellen Friedman, Richard Woo, Tom VanDyck, Melissa Beck, Jenna Nicholas, Farhad Ebrahimi, Vic de Luca, David Gordon, Florence Miller, Peter Martin, Anne Stetson, Jon Jensen, John Goldstein, Shally Shanker and Ginny Quick.

Fetishisms of Apocalypse

‘Trespassing’, Collecting Honey Among Charges Against Nagarahole Tribal People

The Hindu

Sept 5, 2014

by Divya Gandhi,

The State actively prosecutes but ‘Prosecuting them for using forest violates Forest Rights Act’

Between 2001 and 2011, as many as 192 cases were registered against tribal communities living in and around Nagarahole National Park. But their “offences”, which include trespassing forest land, collecting honey and growing ginger in the forest, are, in fact, their rights enshrined in the Forest Rights Act.

A report by a High Court-appointed committee on the status of tribal communities in and around Nagarahole, submitted recently to the Karnataka government, speaks of the “absurdity” of cases booked against tribal people for “trespassing” forests, which they have been living inside for generations.

Booking a large number of cases against tribal people is part of a historical culture of “violence” against the communities, which “takes on different forms,” says the report by the committee, chaired by political studies professor at the University of Mysore Muzaffar Assadi. In the 1970s, it took the form of multiple displacements for tribal families and also the destruction of their homes, crops and settlements “so as to erase their historical presence in the forest region”.

Prosecuting tribal communities for living in and using forests is a violation of the Forest Rights Act that gives them rights over land and forest resources, says Nitin Rai of Ashoka Trust for Research in Ecology and the Environment. “The Act was enacted to rectify the immense historical injustices reaped on Adivasis and forest-dwellers. Draconian conservation laws have criminalised everyday life of Adivasis, who have lived in these forests for centuries.” But ironically, these very laws are constantly bent for industrial and infrastructural projects, he said.

 

‘Withdraw cases’

All pending cases against tribal people booked on “flimsy ground” should be withdrawn to help build trust between them and the political apparatus, says the report. An advocates’ collective should be appointed to fight cases of tribal people in different courts, it adds.

Cases booked also pertained to setting fire to the forest, to poaching wildlife and birds, and felling trees.

+++

Just Conservation

Some background on the Park:

From: http://wildvistas.com/nationalparks/nagarahole/nagarahole.html

+++

Further Reading:

Eviction Slip by Mark Dowie: http://www.guernicamag.com/features/post_1/

Interview with Jenu Kuruba tribal leader: http://wishbone.co.in/interview-with-jenu-kuruba-tribe-leader/

The Green Climate Fund’s Redress Mechanism: A cautionary tale from Nagarahole: http://jusharma.wordpress.com/2014/02/22/the-green-climate-funds-redress-mechanism-a-cautionary-tale-from-nagarahole/

McKibben’s Divestment Tour – Brought to You by Wall Street [Part V of an Investigative Report] [A Thinking Person’s Nightmare]

The Art of Annihilation

September 4, 2014

Part five of an investigative series by Cory Morningstar

Divestment Investigative Report Series [Further Reading]: Part I • Part II • Part III • Part IV • Part V • Part VI • Part VII • Part VIII • Part IX • Part X • Part XI • Part XII • Part XIII

 

“Of all our studies, it is history that is best qualified to reward our research.” — Malcolm X

 

Prologue: A Coup d’état of Nature – Led by the Non-Profit Industrial Complex

It is somewhat ironic that anti-REDD climate activists, faux green organizations (in contrast to legitimate grassroots organizations that do exist, although few and far between) and self-proclaimed environmentalists, who consider themselves progressive will speak out against the commodification of nature’s natural resources while simultaneously promoting the toothless divestment campaign promoted by the useless mainstream groups allegedly on the left. It’s ironic because the divestment campaign will result (succeed) in a colossal injection of money shifting over to the very portfolios heavily invested in, thus dependent upon, the intense commodification and privatization of Earth’s last remaining forests, (via REDD, environmental “markets” and the like). This tour de force will be executed with cunning precision under the guise of environmental stewardship and “internalizing negative externalities through appropriate pricing.” Thus, ironically (if in appearances only), the greatest surge in the ultimate corporate capture of Earth’s final remaining resources is being led, and will be accomplished, by the very environmentalists and environmental groups that claim to oppose such corporate domination and capture.

Beyond shelling out billions of tax-exempt dollars (i.e., investments) to those institutions most accommodating in the non-profit industrial complex (otherwise known as foundations), the corporations need not lift a finger to sell this pseudo green agenda to the people in the environmental movement; the feat is being carried out by a tag team comprised of the legitimate and the faux environmentalists. As the public is wholly ignorant and gullible, it almost has no comprehension of the following:

1. the magnitude of our ecological crisis
2. the root causes of the planetary crisis, or
3. the non-profit industrial complex as an instrument of hegemony.

The commodification of the commons will represent the greatest, and most cunning, coup d’état in the history of corporate dominance – an extraordinary fait accompli of unparalleled scale, with unimaginable repercussions for humanity and all life.

Further, it matters little whether or not the money is moved from direct investments in fossil fuel corporations to so-called “socially responsible investments.” The fact of the matter is that all corporations on the planet (and therefore by extension, all investments on the planet) are dependent upon and will continue to require massive amounts of fossil fuels to continue to grow and expand ad infinitum – as required by the industrialized capitalist economic system.

The windmills and solar panels serve as beautiful (marketing) imagery as a panacea for our energy issues, yet they are illusory – the fake veneer for the commodification of the commons, which is the fundamental objective of Wall Street, the very advisers of the divestment campaign.

Thus we find ourselves unwilling to acknowledge the necessity to dismantle the industrialized capitalist economic system, choosing instead to embrace an illusion designed by corporate power.

+++

Land Grabs, Green Illusions, and Privatization of Forests

As one example (of hundreds) of land grabs under the guise of conservation carried out by NGOs within the non-profit industrial complex, in December of 2011 Kenya’s Samburu people were violently evicted. The eviction occurred following the”purchase” of the land by two American-based charities, the Nature Conservancy and the African Wildlife Foundation (AWF). The two US “conservation” NGOs “gifted” the Samburu’s 17,100 acres of ancestral lands to Kenya’s government (November 2011) in order to create a national park to be run by the Kenya Wildlife Service.

In the above video (1:58) Nakuru Lemiruni sends a message to those responsible for evicting the Samburu tribe from their land. AWF, using funds from The Nature Conservancy (TNC), claimed they purchased the land with the understanding that no one resided on it. When the Samburu protested and took legal action, the land was swiftly “gifted” to the government. Police officers carried out the vicious eviction/attack on a Friday market day, when the men were away, leaving women, elders and children alone in their homes. Fanning out across the 17,000-acre Eland Downs Ranch, the police burned the Samburu families’ homes to the ground, along with all their possessions. Identified in the Kenyan media as “squatters,” the evicted Samburu families then petitioned a regional court to recognize their ancestral claims to the land where they lived and grazed their cattle. The suit has been filed by the Samburu against the AWF and the former President. [Source]

Pension funds began investing in commodities (including food and farmland) only recently.Capital allocated to agriculture investment grew from approximately $6 billion in 2001 to $320 billion in 2011, with hedge funds accounting for a further $100 billion. In 2011, investors expected these numbers to double within a few years. By the end of 2012, this figure rose from $320 to $428 billion. [Source]

“Farmland values across the globe between 2002 and 2010 have risen up to 1,800%, according to the Global Farmland Index compiled by U.K.-based real estate firm Savil. The biggest upswings have been in emerging markets, such as Romania and Hungary.” Global farmland offers potential for asset deals, Sept 26, 2013

The broad gains in commodity markets seen during recent years – dubbed the commodity “super cycle” – have taken a hit in 2013. It was Calpers (California Public Employees’ Retirement System, Ceres Board Member, partner) that helped pioneer pension funds’ foray into indexes that track wheat, energy, metal and other commodities. The money flooded in from big institutions (pension funds and college endowments), turning the market on its head. Economists blamed these new “index speculators,” who had no stake in the underlying commodities, for creating a volatile market. [Source] As of August 2013, the funds decreased from $428 million (2012) to $363 million (Barclays).

Yet not all “commodities” are created equal.

“Timber has attracted $60 billion of institutional money, or almost double that of agriculture, as governments and mills sold “sizable” assets, he said. The lumber market is valued at $425 billion…” Bloomberg, Dec 5, 2012

 

“Farmland has become the darling of alternative investing, sending hedge funds and wealthy investors into bidding wars for plots of land once deemed ordinary. And it is not just big money getting in on the game. From Stockholm to Chicago to Vancouver, ordinary investor money is pouring into fields around the world.” – BBC Capital, June 6, 2013

 

“According to numerous surveys within the industry, pension fund managers are seeking to invest in farmland – a new asset class offering annual returns of 10–20% – as never before.” — June 20, 2011, Grain, Pension funds: key players in the global farmland grab

Included in such “green” portfolios will be massive land grabs and the appropriation of natural resources under the guise of conservation. “Sustainable” plantations (biomass/biofuels/agrofuels; feed for industrialized livestock), REDD+, Carbon Development Mechanisms (CDM) and so-called carbon sink projects comprise a green façade to justify the long-term objective of acquiring control of communally owned territory in the global South. In the long term, the goal is unbridled corporate capture of fertile land with access to cheap and plentiful water and labour, for producing export food crops that will deliver guaranteed high profits. Geo-engineering will place a further emphasis on food gentrification and large-scale monoculture industrial plantations – undoubtedly playing a pivotal and leading role in the accelerating obliteration of Earth’s natural biodiversity. Sovereign nations, peasants, farmers, campesinos, Indigenous Peoples and whole cultures will be annihilated in the process – a feat of 21^st century corporate colonialism.

 “Farmland investments are particularly attractive as prices are supported by solid long-term fundamentals that have little to do with the performance of traditional assets such as equities. In the long-term, farmland values rise as demand for food weighs against a limited supply of good quality land, with farmland prices having been shown to rise in line with population growth and economic expansion in developing nations. This effectively generates a return on investment in the long term, regardless of the performance of the wider economy.” — DGC Asset Management, 2011

 

“They see in farmland what they call good ‘fundamentals’: a clear economic pattern of supply and demand, which in this case hinges on a rising world population needing to be fed, and the resources to feed these people being finite.” — Pension funds: key players in the global farmland grab, June 20, 2011

 

“Of a total $23 trillion of asset under management within the pension fund space, around $100 billion is believed to be invested in commodities, of which between $5 billion and $15 billion is invested directly into farmland investments. A majority of analysts project that institutional investments in farmland and commodities are expected to double by 2015.” — DGC Asset Management, 2011

 

“The Global AgInvesting Conference hosted at the Waldorf Astoria in Manhattan in June attracted some 600 institutional investors representing agriculture investment assets under management of almost $11 billion, and with plans to expand those holdings to almost $20 billion by 2014, a rise of almost 70%. Over 200 attendees were from the pension fund sector, and the majority intend to invest in farmland as the mainstay of their agricultural investment strategy.” — DGC Asset Management, 2011

According to Macquarie Agricultural Funds Management, agricultural land represents an $8.4 trillion market, of which institutional investors currently own approximately $30-$40 billion. This represents a fragment of the (monetary) value of farmland globally, estimated at about $8.4 trillion. Key regions targeted include Brazil and Argentina. Thus far, only 6 percent of institutional investment in primary agriculture has been in Africa due to geopolitical barriers. Yet, it is critical to note that investors perceive Africa as “having the most scope to open new areas of arable farmland.” [Institutions are blazing a trail in CIS farming, December 2, 2013, Source]

An industrialized economic system that voraciously consumes Earth’s natural resources, with zero regard toEarth’s replenishing cycles/laws of nature, ensures that agriculture is one clear and unmistakable source of pay-off for institutional investors. The new surge in money will push up global food prices (as we have already witnessed), hitting hardest those most vulnerable. As an example of investment driving up the market, food costs in 2012 came within 10 percent of the record set in February 2011 (United Nations Food Price Index). According to the World Bank, it is estimated that global food production will need to rise 70 percent to feed an additional 2 billion people on the planet. This will be a most miraculous attainment considering that as global temperatures increase beyond any temperature witnessed during the Holocene, agricultural yields will only further decline. Translation: food will be afforded, more and more, only by the wealthy.

“I see a massive change in agriculture coming … the returns on land over the long term equate to those received over the last 500 years by royal families… as food scarcity issues are likely to arise in the future, such land will rise in value too.” — Laguna Bay Pastoral chief executive Tim McGavin, Nov 18, 2013

Farmer loses farm. Investor or corporation now leases out farm (as well as related farming and irrigation infrastructure). Farmer now rents farm, etc. from investor or corporation while “the returns on land over the long term equate to those received over the last 500 years by royal families”.

Welcome to 21^st century agro-colonialism.

And although Friends of the Earth knows full well that divestment does not address the finance of land-grabs (view Friends of the Earth endorsement in the civil society statementon the finance of land grabs, June 2012: Land grabbing by pension funds and other financial institutions must be stopped),they make no mention of it when promoting (one example) the divestment campaign led by 350.org.

 “Pension funds are, at present, reported to be the largest institutional ‘investors’ in farmland worldwide. Yet the money used here is workers’ retirement savings. This means that wage earners and citizens may be implicated in massive violations of the human rights of local farming communities, including their rights to food, land, water, an adequate standard of living, their cultural rights and their right to self-determination – in breach of international law.” — Friends of The Earth Press Release, June 2012

More and more tragedies involve land grabbing, which is happening at an unprecedented rate all over the planet under the guise of “conservation” and “green economy.” For example, Hundreds Left Homeless in Olkaria Eviction in Kenya due to a large-scale geothermal project that has attracted both multinational and bilateral donors, with the World Bank being the main financier of the project. (Another video of the July 26, 2013 attack on the Maasai village in Olkaria is here). The short documentary film, Seeds of Discontent, exposes how a Swedish investment firm, Dutch pension fund and Norwegian church endowment actively engaged in land grabbing in Mozambique.

In Canada, the Algonquin people are fighting threats to land and water from an open-pit mining project for hybrid car batteries. Toyotsu Rare Earth Canada (TRECan), a Canadian subsidiary of Japan-based Toyota Tsusho Corporation, plans to build an open-pit Heavy Rare Earth Elements (HREE) mine directly next to Kipawa Lake, the geographical, ecological, and cultural centre of the Kipawa First Nation. Rare earths are a group of 17 elements found in the Earth’s crust. They are used to produce electronics for cell phones, wind turbines, and car batteries. Rare earths are notorious for their environmentally costly extraction process, with over 90 per cent of the mined raw materials classified as waste. [Source: Toyota Prius Not So Green After All]

Welcome to the “green economy”: classist, racist and utterly disgusting.

Yet another example in Canada, the Alberta Conservation Association is just one of thousands of NGOs working with corporations (in this case Shell, Suncor, the Canadian Government – see partners below) to commodify Earth’s last remaining resources under the guise/greenwash of conservation. The newly acquired and named “Shell Forests” are just a few examples.

As with the Keystone XL oil pipeline campaign, one is wise to watch the stock market in order to gain a sense of where the economic growth is expected to boom. In addition to both Warren Buffett’s and Bill Gates’s fairly recent stock acquisitions (in addition to their newly acquired/built rail empire) of John Deere and GMO crops, amidst the global rush to control the planet’s water, Buffett has been “loading up on the agricultural giant” Archer Daniels Midland (a focus on soybeans and ethanol – February 20, 2013) while eyeing farmland in Africa with plans to expandMonsanto’s biotechnology for “drought-tolerant corn” onto the Saharan landscapes.

 “Brazil’s agricultural sector remains one of the most exciting markets around. Don’t take our word for it. George Soros, Warren Buffett and Bill Gates, all major investors and farmers in the Bahia region of Brazil, believe Brazil to be the best location for their alternative investments…. The buzz around Brazilian farmland has sparked interest from a wide range of different institutions, from hedge funds to private investors, pension funds and even foreign government entities from China, India, Europe and Africa have been making agricultural land enquiries within Brazil.” — Brazil’s Farmland is Still Ripe for Investment, March 18, 2013

In stark contrast, what lies beyond “modern” industrialized agriculture mirrors what we left behind in our collective past – a simple, nourishing work and respect of the soil, the land, the plant, the crop. In fact, millions of farmers are already advancing agriculture for themselves utilizing the same methods that have worked to feed humans for the past 10,000 years. [Source]

There has been a steady, building backlash against pension funds investing in massive land grabs (that have increased and continue to increase food prices, displace peasant farmers, and increase poverty and hunger). Because of this backlash, pension funds have been “afraid to go into the field alone, and they want to spread their bet or their risk by having partners join them.” In some societies not yet absorbed into the (pathological and insane) industrialized western mindset, land is sacred and the sale of land in some societies is not acceptable. [March 6, 2013, Pension funds join forces to invest in farmland. Source]

A Future of Unprecedented Coups

Ukraine, the most recent state to fall to a US-backed coup, was/is not only coveted for strategic geographic/geopolitical position (aka control of oil/gas), but also for its rich black soil. Soil is the new oil of the 21st century. “Ukraine, formerly the breadbasket of the Soviet Union, is now a major crop producer for the world market. The country has over 32 million hectares (ha) of arable land, which is equivalent to roughly one third of the arable land in the entire European Union (EU). Its location on the Black Sea and its fertile black soil – it possesses 25 percent of the world’s so-called Chernozem – make Ukraine attractive to agricultural producers and investors. Moreover, agriculture is now considered as a main business opportunity in the Black Earth (Invest Ukraine, 2011).”Oligarchs and transnational capital have taken over the land with their share in the GDP at 42.3 percent, against 5 percent for farmers (Ministry of Agriculture, 2012). [Source]

Environmental Colonialism | So-called “Conservation”

“It is no secret that millions of native people around the world have been forced off their homelands to make way for oil, mines, timber, and agriculture. But few people realize that the same thing has happened for a cause which is considered by many as much nobler: land and wildlife conservation. Indigenous peoples evicted from their ancestral homelands, for conservation initiatives, have never been counted; they are not even officially recognised as refugees. The number of people displaced from their traditional homelands is estimated to be close to 20 million – 14 million in Africa alone. These expelled native peoples have been living sustainably for generations on what can only be reasonably regarded as their ancestral land.” [Watch: Conservation Refugees – Expelled from Paradise (24:18)

One NGO at the helm of stealth land grab ventures is Conservation International. Since its inception in 1987, Conservation International has continued to use “its considerable financial resources, political influence and environmental sweet talk to quietly access, administer and buy biodiverse areas throughout the world and put them at the disposal of transnational corporations.” [Conservation International: privatizing nature, plundering biodiversity, October 2003] Not to be lost is the fact that Conservation International has utilized the same soft power strategies in their ecotourism ventures (also dependent on Indigenous knowledge/peoples) as they have in their land/big pharma exploits in partnership with Monsanto and Novartis. [Further reading: Fundacion Pachamama is Dead – Long Live ALBA [Part I of an Investigative Report]

 “REDD+ is driven by profit interests and is structured to allow polluters to continue polluting while increasing profits and enclosing lands.” — A colonial mechanism to enclose lands: A critical review of two REDD+-focused special issues, Joanna Cabello and Tamra Gilbertson, June 12, 2012

21^st century market-based climate mitigation strategies are merely business opportunities to further corporate power. By normalizing such opportunistic exploitation, rather than exposing/rejecting it, one is complicit in promoting, thus prolonging, the dominant development model that is unjust, unethical, genocidal and ultimately, suicidal. The WWF certification schemes are but one set of such false solutions and green illusions. At present, WWF et al are waiting for the windfall that is slowly beginning to come into fruition under the much sought-after market mechanism REDD (which stands for Reducing Emissions from Deforestation and Forest Degradation).

It must be understood that REDD will not mitigate further ecological degradation and collapse (under the guise of so-called conservation). Rather, REDD will only serve to further strengthen corporate power as well as gained access and control of the Earth’s last remaining forests.

“This is an effort to address the varying assumptions from the academic journals – that REDD+ can be fixed with more governance, finance and/or community engagement – through a critique of the wider neoliberal climate regime, issues of ‘governance’ as an unproblematised category, and by exploring, from de-colonialist and environmental justice perspectives, the issues of real participation and sustainability. We conclude that REDD+ is framed within an epistemological understanding of forests and lands which supports the domination of nature by humans for economic profit, regardless of financial input, governance and/or participation from communities, and therefore will not be a successful means of climate mitigation or forest protection.” — A colonial mechanism to enclose lands: A critical review of two REDD+-focused special issues, Joanna Cabello and Tamra Gilbertson, June 12, 2012 [Emphasis added]

[Further reading on REDD: Fundación Pachamama is Dead – Long Live ALBA | Part II]

Millions of hectares of forest in Indonesia and Malaysia have been grossly and violently exploited. Cleared for palm oil (to manufacture processed foods for the wealthy states plagued with obesity), the palm oil plantations have destroyed whole communities, cultures, and thriving living ecosystems along with the flourishing wildlife within them. The degradation and pillage that have resulted are so severe that palm oil investors are now turning to the west coast of Africa as the industry’s next frontier. A recent forest burning in Sumatra resulted in one of Southeast Asia’s worst air-pollution crises in history, blanketing neighbouring Singapore and Malaysia with record levels of smog. As a result, in May 2013 Indonesia extended a moratorium on the issuance of new plantation and timber concessions in primary forests and peatland. Desperate to ensure growth of the vile industry, Norway has agreed to provide the country with up to $1 billion in financing to “help reduce deforestation.” [Source]

Everything Changes. Everything Stays the Same | Green Colonialism and Forest Policies in South India, 1800-1900

“Going green” has become a popular slogan in the discourse of environmental conservation, and one that has been gaining wider popularity as global warming begins to threaten the very existence of the biotic world. The global environmental crisis has created a context in which the protection of forests has become a top priority in environmental conservation strategies. The preservationist and restorationist discourses advocate forest conservation as a means to save the Earth from environmental disaster. However, in spite of this strong emphasis on the preservation of forests, their destruction continues. In most of the present-day developing countries of Asia and Africa, this contradiction between advocated preservation and effective destruction of forests is a legacy of British colonial rule.

In a bid to expand the knowledge frontier on forest conservation, the British government appointed a committee under the chairmanship of Dr. H. Cleghorn in 1851, which produced a report on the condition of Indian forests. It’s the main point was that the process of deforestation was due to the irrational exploitive methods of the natives, most notably the shifting cultivation practised by the tribes. The committee strongly advocated state intervention to restore the forest cover, as the very welfare of the country depended upon its existence. The preservation and expansion of green cover, they argued, was necessary to save India’s climate and irrigation systems.

Dr. Cleghorn, first conservator of forests in the Madras Presidency, brought out his classic book, Forests and Gardens of South India, in 1861. It hardly discussed desiccationist ideas (the notion that cutting down a tree reduced the amount of rainfall on the spot where the tree had stood), but rather concentrated on silviculture and plantations. Nevertheless, again Cleghorn identified the shifting agricultural practices of tribes as mainly responsible for deforestation and the consequent ecological changes. It is important to note that this desiccationist discourse was informed by a presumption of racial superiority, where the colonizers branded the native farmers as destroyers of forests. Thus, desiccationist discourse was used not only as a justification for colonial forest policies, but also as a means to control the access of natives to forests.

The history of desiccationist discourse in South India shows how the British imposed scientific and moral hegemony over forests by blaming deforestation on the forest utilization pattern of the Indians although it was actually the colonial state that was responsible for the severe deforestation of South India. The desiccationist discourses of colonial scientists emanated from a context of anxiety over the wood requirements of the colonial state. Existing studies on desiccationist discourse in India project it as a moral reflection of the colonial scientific community. The history of colonial forest policies, however, indicates that it was rather a means to spread alarm and thereby facilitate the expansion of state control over forests. Desiccationist ideas were articulated not by scientists alone, but also by different sections of the colonial bureaucracy and policy makers. The narrative of the climatic influence of forests was a contested issue within the colonial bureaucracy at one level, and by the local people at another. The desiccationists advocated the protection of forests mainly on mountain slopes, where rivers originate. Their ideas, however, were used as a justification for the expansion of state control over most of the forest landscape in South India. The alarmist narratives were used as a catalyst for the imposition of the state’s administrative and legislative control over forests, but the main guiding force of colonial forest policies was the seeking of revenue and resources.

This legacy has had an explicit influence on the forest policies of independent India. Most policy interventions since independence – including social forestry, joint forest management and community forest management – have been justified with desiccationist discourse. [1] [Source: Green Colonialism and Forest Policies in South India, 1800-1900]

In 2013, the song remains the same.

Just as South India demonstrates how the British imposed scientific and moral hegemony over forests by blaming deforestation on the forest utilization pattern of the Indians (rather than those responsible: corporations and capitalism), today’s industrialized nations impose scientific and moral hegemony over Earth’s forests with the ultimate goals being 1) the implementation of REDD 2) the commodification and corporate capture of the Earth’s last remaining forests, and 3) the continuance of an ongoing genocide of Indigenous Peoples. And just as the British empire was responsible for the degradation they blamed on the Indians, today this transfer of responsibility is undertaken by NGOs. NGOs as key instruments of empire are utilized to manipulate the Indigenous Tribal peoples by convincing them that their ancient methods of burning are the primary drivers of climate change and destroying the planet, thereby guilting (and bribing) Indigenous Peoples into signing away their rights for their ancestral land, thus imposing REDD, thus imposing moral hegemony. In South India, the history of colonial forest policies indicates that it was rather a means to spread alarm and thereby facilitate the expansion of state control over forests. Today, climate change (very real) is grotesquely exploited by the elites as the ultimate catalyst for the commodification of Earth’s remaining resources.

 

 

The colonial scientific community’s discourse on the climatic importance of forests continues to this day, as does the underlying racism that attempts to pardon the colonizers’ greed, self-centeredness and voracious pillage.

It is critical to recognize that the push towards the illusory green economy is not driven by the vital necessity for the privileged to live within their means, rather it is serving as a driver for the infinite expansion of industrial production. This must be achieved by producing more raw materials to supply more sweatshops/factories, hence requiring more energy supplied by so-called “green” biofuels/biomass. The key words being “more”: more, more, more and more. The call of scientist Kevin Anderson (Tyndall Centre for Climate Change Research) for a required and planned recession by developed states goes ignored.

Blue Gold

 “…major investment banks think the number of people served globally by investor-owned water companies is expected to rise 500% over the next 10 years.” — Energy & Capital, A Background and Primer for Water Investments, Source

 

“Water as an asset class will, in my view, become eventually the single most important physical-commodity based asset class, dwarfing oil, copper, agricultural commodities and precious metals.” — Willem Buiter, Citigroup’s top economist, 2011

Photo: July 18, 2014.Water shut-offs continue in Detroit

“A major international conference in Edinburgh aimed at conserving wildlife is coming under fierce attack from campaign groups for trying to sell off nature to multinational corporations. The first ‘World Forum on Natural Capital’ later this month is due to attract business and conservation leaders from across the globe to debate how to give natural resources a monetary value in order to try and protect them. ‘The presence of big business, such as RBS, Coca Cola, Rio Tinto and KPMG, at the World Forum on Natural Capital exposes the event’s real purpose – putting a price on nature so that a small minority can profit…. [B]illions of people around the world depend on free access to forests, rivers and fertile soils for their survival. Putting a price on these common resources leaves all of us more exposed to the forces of the global economy.'” — Nick Dearden, Bid to ‘sell off nature’ to companies under fire, Nov 13, 2013 [Emphasis added]

Water investments represent yet another “sustainable”/green fund responsible investment that would be considered a “green” alternative to fossil fuel investment. Such investment funds are also marketed as “clean technologies.”

“They transform water from a resource openly available to all into a private good whose access must be negotiated and is often based on the ability to pay. Water grabbing thus appears in many different forms, ranging from the extraction of water for large-scale food and fuel crop monocultures, to the damming of rivers for hydroelectricity, to the corporate takeover of public water resources. It also inheres in a model of development which is underwritten by a trade in virtual water.” [Source]

The December 21, 2012 article titled The New “Water Barons”: Wall Street Mega-Banks and the Tycoons are Buying Up Water at Unprecedented Pace, published by The Market Oracle, must be considered essential reading. Author Jo-Shing Yang observes:

“A disturbing trend in the water sector is accelerating worldwide. The new ‘water barons’ – the Wall Street banks and elitist multibillionaires – are buying up water all over the world at unprecedented pace. Familiar mega-banks and investing powerhouses such as Goldman Sachs, JP Morgan Chase, Citigroup, UBS, Deutsche Bank, Credit Suisse, Macquarie Bank, Barclays Bank, the Blackstone Group, Allianz, and HSBC Bank, among others, are consolidating their control over water. Wealthy tycoons such as T. Boone Pickens, former President George H.W. Bush and his family, Hong Kong’s Li Ka-shing, Philippines’ Manuel V. Pangilinan and other Filipino billionaires, and others are also buying thousands of acres of land with aquifers, lakes, water rights, water utilities, and shares in water engineering and technology companies all over the world….

 

“Now, in 2012, we are seeing this trend of global consolidation of water by elite banks and tycoons accelerating. In a JP Morgan equity research document, it states clearly that ‘Wall Street appears well aware of the investment opportunities in water supply infrastructure, wastewater treatment, and demand management technologies.’ Indeed, Wall Street is preparing to cash in on the global water grab in the coming decades. For example, Goldman Sachs has amassed more than $10 billion since 2006 for infrastructure investments, which include water. A 2008 New York Times article mentioned Goldman Sachs, Morgan Stanley, Credit Suisse, Kohlberg Kravis Roberts, and the Carlyle Group, to have ‘amassed an estimated $250 billion war chest – must of it raised in the last two years – to finance a tidal wave of infrastructure projects in the United States and overseas….

 

“In 2008, Goldman Sachs called water ‘the petroleum for the next century’ and those investors who know how to play the infrastructure boom will reap huge rewards, during its annual ‘Top Five Risks’ conference. Water is a U.S. $425 billion industry, and a calamitous water shortage could be a more serious threat to humanity in the 21st century than food and energy shortages, according to Goldman Sachs’s conference panel. Goldman Sachs has convened numerous conferences and also published lengthy, insightful analyses of water and other critical sectors (food, energy).

 

“Goldman Sachs is positioning itself to gobble up water utilities, water engineering companies, and water resources worldwide. Since 2006, Goldman Sachs has become one of the largest infrastructure investment fund managers and has amassed a $10 billion capital for infrastructure, including water.”

 

Many pension funds have forayed into the water investment sector. As an example, Canadian pension funds CDPQ (Caisse de dépôt et placement du Québec, which manages public pension funds in the province of Québec) and CPPIB (Canada Pension Plan Investment Board) have acquired England’s South East Water and Anglian Water, respectively. [Source] There are also several water indexes, index funds and hedge funds. Credit Suisse partnered with Ceres partner General Electric (GE Infrastructure) in May 2006 to establish a U.S.$1 billion joint venture to profit from privatization and investments in global infrastructure assets. [Source]

The 2011 Ceres report Aqua Gauge is telling. All definitions within the paper are sourced from “Water for Business: Initiatives Guiding Sustainable Water Management in the Private Sector” (WBCSD, IUCN, 2010). The paper also notes thatBloomberg has announced plans to launch a water-focused data service that would provide supply-and-demand models, water data, and news and briefings on water scarcity. [“Our research notes, analyst reactions and market outlooks enable investors to identify upcoming changes and validate opportunities for growth.” [Bloomberg’s once-launched water-focused data service has since been removed: http://about.bnef.com/markets/water/]

The list of corporations that Ceres is strategically aligned with is far more telling. Goldman Sachs (Ceres Financial Services Companies), JP Morgan Chase, Citigroup, UBS (Bruno Bertocci of UBS serves on the Ceres 21CI Advisory Committee, acronym for The 21st Century Investor), Deutsche Bank (Ceres INCR member), Credit Suisse, Macquarie Bank, Barclays (Ceres financial backer), Allianz, HSBC, Bank of America (Ceres Company), Morgan Stanley, the very water barons highlighted by Yang in the above article, are all associated with Ceres funders / associates / partners / members / prominent conference speakers.

It is of interest to note that Ceres highlights many of these same banks, Bank of America, Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, Fortis, Merrill Lynch, Mitsubishi UFJ, and Morgan Stanley as the “carbon trading leaders.” [Source: Ceres 2008 Banking Sector Report.] At this point you may wish to remind yourself that many trusted NGOs are partners with Ceres and many have served on the advisory board since its inception.

Note that in 2013, “Morgan Stanley created the Institute for Sustainable Investing with the goal of mobilizing capital to address sustainability challenges at scale, building on the firm’s existing efforts. The Institute focuses on developing sustainable investing products and solutions, thought leadership and cross-sector partnerships. As part of the Institute’s launch, Morgan Stanley announced a five-year goal of $10 billion in total client assets in investments that seek to deliver market-rate returns and positive environmental and social impact. Ceres President Mindy Lubber serves on the Institute’s Advisory Board, which is chaired by Morgan Stanley’s Chairman and CEO James Gorman.” [Emphasis added] [Source]

The Ceres president serving on Morgan Stanley’s Institute for Sustainable Investing advisory board is yet another fine example of the interlocking directorate – a contagion that thrives in the non-profit industrial complex. (The Rebecca Adamson example will follow.)

While water investments continue to skyrocket, Calvert Asset Management Company, Inc., a Ceres coalition member, and Allianz (Ceres associate)represent two of the “best” recognized water-focused mutual funds: The Calvert Global Water Fund [Class A (CFWAX)] has returned a whopping 27.65 percent over the past year; 15.98 percent over the past three years; and 16.06 percent over the past five years. [Source] The same fund (CFWAX), having held $42 million in assets in 2010, now holds assets of $564.86 million as of July 4, 2014. [Source] The Allianz Global Water Fund [Class A (AWTAX)] has had a staggering return of 25.12 percent over the past year; 11.10 percent over the past three years; and 14.34 percent over the past five years. [Source] The same fund (AWTAX) having held assets of $54 million in 2010, now holds assets of $348.3 million as of June 30, 2014. [Source] These two Ceres associates hold positions number two (AllianzGI ) and number five (Calvert) for “Best Mutual Funds” under the fund category of “Natural Resources” by U.S. News.

It is critical to note that Calvert has held a position on the Ceres Board of Directors from 2001*-2006 via Julie Fox Gorte.Gorte’s background is extensive and not limited to the following:

“Gorte serves as Chief Social Investment Strategist and Vice President at Calvert Variable Series, Inc. – Calvert VP Small Cap Growth Portfolio, Calvert Variable Series, Inc.- Calvert Social Small-Cap Growth Portfolio, Calvert Variable Series, Inc. – Ameritas Growth Portfolio, Calvert Variable Series Inc – Calvert VP SRI Equity Portfolio, and Calvert Variable Series, Inc. – Calvert VP SRI Balanced Portfolio. She served as Vice President and Chief Social Investment Strategist at Calvert Group, Ltd., Calvert Variable Series, Inc – Ameritas Small Company Equity Portfolio and Calvert Variable Series, Inc. – Calvert VP Mid Cap Value Portfolio. She served as a Vice President and Chief Social Investment Strategist at Calvert Investment Management, Inc. and Calvert Asset Management Company, Inc. Prior to that, Dr. Gorte served as Director of Calvert Asset Management’s social research department, where she managed its team of social and environmental analysts as well as shareholder advocacy.” [Source] [*Several requests to Ceres for annuals reports prior to 2001 have been unsuccessful.]

Today Gorte serves as the Senior Vice President of Sustainable Investing at Pax World Management Corporation. Under Pax, Gorte has continued her board member status on Ceres from 2006 to present. “Gorte oversees environmental, social, and governance-related research on prospective and current investments as well as the Pax’s shareholder advocacy and work on public policy advocacy. She serves as Portfolio Manager of Pax World Funds Series Trust III – Pax Ellevate Global Women’s Index Fund.” [Source]

Not to be outdone, Rebecca L. Adamson, President, First People’s Worldwide, serves on the Board of Trustees of Calvert. In the March 13, 20123 article, The Corporate Buy-In, the author writes:

“As I wrote in Too Good to be True, Rebecca Adamson’s value to energy extraction corporations is that of broker, helping multi-national corporations to corrupt tribal leadership through corporate buy-ins. By making grants to tribes through investments in Adamson’s international NGO First Peoples Worldwide, Shell Oil and other notorious corporations pave the way for industrial development in the Fourth World.”

At this juncture it must be noted that Calvert has given financial support to Ceres since, at minimum, 2001, and possibly from inception.

One of the world’s largest banks, JPMorgan Chase, has been at the helm of those aggressively pursuing water and infrastructure investment worldwide. JPMorgan’s own analysts estimate that the emerging markets infrastructure is approximately U.S.$21.7 trillion over the next decade. [Source] Ceres works closely with JPMorgan Chase and many other powerful banks and financial institutions in achieving their goals:

“Stakeholder engagement: Ceres, working with our coalition of investors and advocacy groups, engages with a number of financial services firms including Bank of America, State Street, Wells Fargo, JP Morgan [sic] Chase and Citi to help them assess their performance on environmental and social impacts and risks, and identify opportunities for improvement.” [Source]

In the June 16, 2014 article titled Wasted Energy: Fossil Fuel Divestment, author Jay Taber notes that “divestment won’t change a thing environmentally. It will only change ownership of some shares from public institutions to private ones – like the banks we bailed out with our tax dollars. Given the money to be made on the booming fossil fuel industry, I’m sure the banks will be delighted to acquire these shares, and in turn leave the public with no voice at future shareholder meetings.” It is more than likely that Yang (author of the aforementioned Water Barons article) would agree. In the 2008 article, Why Big Banks May Be Buying up Your Public Water System, Yang astutely notes:

“I detailed how both mainstream and alternative media coverage on water has tended to focus on individual corporations and super-investors seeking to control water by buying up water rights and water utilities. But paradoxically the hidden story is a far more complicated one. I argued that the real story of the global water sector is a convoluted one involving ‘interlocking globalized capital’: Wall Street and global investment firms, banks, and other elite private-equity firms – often transcending national boundaries to partner with each other, with banks and hedge funds, with technology corporations and insurance giants, with regional public-sector pension funds, and with sovereign wealth funds – are moving rapidly into the water sector to buy up not only water rights and water-treatment technologies, but also to privatize public water utilities and infrastructure.”

Yang’s words will serve to be prophetic as the divestment campaign unfolds.

Ceres has done a formidable job in serving the corporate interests that fund their work. With skillful precision, Ceres strategically and effectively exploited and continues to exploit the greatest crisis humanity has ever faced in order to secure and further all “climate wealth” opportunities for the oligarchs. In the wave of urgent reports published in November of 2012 [Oligarchy Sends Signal for Green Economy], Ceres promptly seized the moment. On November 20, 2012 the Guardian published the articleInfluential Investors (CERES) Call for Action on ‘Serious Climate Danger’:

“A coalition of the world’s largest investors called on governments on Tuesday to ramp up action on climate change and boost clean-energy investment or risk trillions of dollars in investments and disruption to economies. In an open letter, the alliance of institutional investors, responsible for managing $22.5 trillion in assets, said rapidly growing greenhouse gas emissions and more extreme weather were increasing investment risks globally. The group called for dialogue between investors and governments to overhaul climate and energy policies.”

Author Yang perhaps summarizes Cere’s work best:

“The elite multinational and Wall Street banks and investment banks have been preparing and waiting for this golden moment for years. Over the past few years, they have amassed war chests of infrastructure funds to privatize water, municipal services, and utilities all over the world. It will be extremely difficult to reverse this privatization trend in water.”

The Thinking Person’s Nightmare

 

During the last four years, Americans have been coerced into focusing on a single, symbolic campaign to Stop the Keystone XL Pipeline. This campaign was funded in large part by the Tides Foundation, which distributes the funds (from other foundations) to qualifying NGOs and groups. The number one funder of the Tides Foundation leading up to and during this time period was none other than the NoVo Foundation, founded on monies provided by Warren Buffett. [“NoVo was created in 2006 after Warren Buffett pledged to donate 350,000 shares of Berkshire Hathaway Inc. stock to the foundation.”] It is maintained by Warren Buffett’s son, Peter Buffett (co-chair) and partner Jennifer Buffett (president and co-chair).

As it has been clearly and unequivocally demonstrated that the Euro-American Left, collectively, far prefers fiction over reality, perhaps it is futile to explain that the Tides Foundation also channels hundreds of thousands of dollars into Ceres. In 2010, TIDES granted $100,000 to Ceres, specifically earmarking the funds for a “tar sands campaign.” [TIDES 990, 2010] In 2008, Ceres received $50,000 from Wallace Global, also designated for a tar sands campaign. [***Further information on the relationship between the Tides Foundation, the NoVo Foundation, Ceres and NoVo’s stocks in Warren Buffet’s Berkshire Hathaway is disclosed in an upcoming segment of this investigative report.]

And all while, Warren Buffett built an entire 21st century American Rail Empire with absolutely no dissent. “Burlington Northern Santa Fe Corporation is the parent company of the BNSF Railway (formerly the Burlington Northern and Santa Fe Railway). The railroad is now wholly owned by Berkshire Hathaway, which is controlled by investor Warren Buffett.” [Source] As the crude-via-rail industry (ignored by the NGOs) continued to skyrocket, the non-profit industrial complex continued to declare glorious victories while key segments of the KXL pipeline (much of the pipeline having already been built before the campaign even began) quietly went into operation. And while a theatre performance worthy of the Palau de la Música Catalana was playing to a sold-out audience (quite literally), Ceres was expanding its tentacles throughout the globe.

 

Next: Part VI

 

[Cory Morningstar is an independent investigative journalist, writer and environmental activist, focusing on global ecological collapse and political analysis of the non-profit industrial complex. She resides in Canada. Her recent writings can be found on Wrong Kind of Green, The Art of Annihilation, Counterpunch, Political Context, Canadians for Action on Climate Change and Countercurrents. Her writing has also been published by Bolivia Rising and Cambio, the official newspaper of the Plurinational State of Bolivia. You can follow her on twitter @elleprovocateur]

 

EndNotes:

[1] http://www.globalenvironment.it/Kumar.pdf