Banks, Pulp & People

A Primer on Upcoming International Pulp Projects

A report by Chris Lang. Published by urgewald, June 2007.

Contents

PART 1

1. INTRODUCTION

1.1 A visit to a pulp mill
1.2 Financing is part of the problem

2. THE IMPACTS OF INDUSTRIAL TREE PLANTATIONS AND PULP MILLS

2.1. Water sucking monocultures
2.2. Plantations increase deforestation
2.3. Jobs created are few and dangerous
2.4. Plantations increase rural poverty
2.5. Pulp, energy and climate
2.6. Pulp mills create pollution

3. STRUCTURAL PROBLEMS OF THE PULP INDUSTRY

3.1. Overproduction
3.2. Overconsumption
3.3. Dependence on Subsidies

4. “LOW-FACT” FINANCING OF PULP MILLS

4.1. Public Finance
4.1.1. IFC: “Open for business”
4.1.2. EIB: Destroying livelihoods in Brazil
4.1.3. ADB: Increasing poverty
4.1.4. ECAs: Supporting profits in the North

4.2. Private finance

4.2.1. Political risk
4.2.2. Financial risk
4.2.3. Legal risk
4.2.4. Reputational risk

PART 2

1. WORLDWIDE PULP EXPANSION

2. COUNTRY PROFILES

2.1. Australia
2.2. Brazil
2.3. China
2.4. Indonesia
2.5. Laos
2.6. South Africa
2.7. Uruguay

PART 3

1. RECOMMENDATIONS

1.1. The Role of Development Banks
1.2. The Role of Commercial Banks
1.3. Existing Tools

2. REFERENCES

This report was edited by Lydia Bartz, Heffa Schücking and Patrick Anderson. Thanks to everyone involved.