Issues: World Bank & IFIs

Concerned about cutting down rainforests to graze more cattle?

According to the World Bank's Independent Evaluation Group... the Bertin Project poses a "grave risk" to the environment and to the reputation of the World Bank. Click here for IEG report.

Earlier 2007, a coalition of environmental groups including the Sierra Club and Friends of the Earth campaigned against the multimillion dollar Bertin Project in Brazil. Despite these efforts and warnings from the World Bank's own evaluation group, the International Financial Corp (IFC)--the World Bank's lending arm--approved funding the one of the largest livestock expansion projects to date with a $90 million loan.

To make matters worse, the IFC sets the standard for other international financial institutions (IFIs) and regional lenders. By approving this type of loan, IFC set a dangerous precedent for other lenders to support large-scale and intensive animal agriculture projects, with little regard for the negative consequences on the environment or subsistence farming.

Sierra Club's Warning:

In light of the very significant undesirable impacts of this proposed project on greenhouse gas emissions that cause climate change, it is recommended that the Board of Directors not approve the proposed Bertin project.

Excerpt from Sierra Club Report: Box 1: Bertin Project Description Bertin Ltda, part of the Bertin Group that operates in more than 80 countries worldwide, is a leading integrated beef and hide processor in Brazil, with existing capacity to process about 5,400 head of cattle per day. IFC’s investment of $90 million toward Bertin’s $424 million 2005-2007 expansion and modernization investment program would enable Bertin to process 5000 additional head per day, at facilities including one acquired in 2005 in Marabá in Brazil's Amazon region. IFC has stated that the decision to finance Bertin will be considered by IFC's Board of Directors on the basis of the project's merits and potential to set standards for sustainable cattle grazing in the Amazon.

According to a report by Dow Jones, IFC's investment in Bertin has led to many more meat-producing companies approaching IFC for financing, which other organizations consider too risky.  The Dow Jones report implies that the failure of the campaign led by the Sierra Club (America's oldest and largest environmental organization) has emboldened IFC to consider financing more highly destructive projects like Bertin. 

The next campaign to stop such a project will need new efforts to be added to those of the Sierra Club.  For more information or to join such efforts, please e-mail us.