Resources

Not all markets can be regulated effectively. Two examples are the markets for advanced credit derivatives – largely responsible for the current economic crisis -- and the growing carbon markets that are claimed to be capable of addressing global warming and that are the particular subject of this draft chapter. The attempt to regulate such markets does little more than create an illusion of governance where none actually exists. That only allows the dangers to grow larger.

Cuando la regulación se convierte en corrupción: El caso de los mercados de compensación de carbono

No todos los mercados se pueden regular con eficacia. Un ejemplo son los mercados de derivados de crédito que son una de las causas de la crisis financiera. Otro ejemplo son los mercados de carbono que constituyen la "solución" al calentamiento global, favorecida por la mayoría de los gobiernos del mundo. El intento de regular estos mercados no hace más que crear una ilusión de una gobernabilidad que en realidad no existe. Esta ilusión sólo permite que los peligros crezcan más.

BAE Systems, the UK's largest arms company, has cancelled all its public insurance for its controversial arms sales to Saudi Arabia. The company's decision came to light as a result of legal correspondence between The Corner House/Campaign Against Arms Trade with the UK Export Credits Guarantee Department (ECGD) and subsequent parliamentary questions tabled by Vince Cable MP. By cancelling its insurance, BAE has let the ECGD off the hook from possible legal action over its support for the Saudi deals.

The UK Government is using emergency powers to amend the Export and Investment Guarantees Act 1991 governing the Export Credits Guarantee Department (ECGD), so that exporting companies can apply for insurance after they have started constructing their overseas projects (such as oil and gas pipelines, hydroelectric dams and power plants). The amendments would enable companies to circumvent the Department's human rights, environment and sustainable development safeguards.

Merrill Lynch is a major Wall Street investor in carbon pollution permits. Here its Global Head of Carbon Markets debates The Corner House on whether carbon markets are effective.

On 12-13 March 2009, development, environment and human rights groups from Belgium, France, Italy, Ireland, Switzerland and the UK, and local residents of the island of Jersey organised a seminar to discuss the necessity for tax haven reform and to exchange views on how governments and civil society can work towards achieving a "just transition" for tax havens that would not impact on poorer residents.

The Corner House and others carried out a training session to assist Iraqi government officials and civil servants in understanding the principles of human rights and Iraq's international obligations in relation to investment agreements.

Environmentally- and socially-destructive development projects are increasingly being funded by hedge funds, private equity and sovereign wealth funds (instead of by public or private banks) that are not subject to transparency, governance or reporting requirements. Public financial institutions are also investing in these alternative vehicles, which are often based in offshore tax havens. Basic information about these vehicles is not routinely made public. But in the midst of the financial crisis, the Asian Development Bank is pushing for even less transparency for such risky investments. Regulatory authorities should instead focus on much stronger transparency and accountability requirements and address the use by public financial institutions of "secrecy jurisdictions".

Huge amounts of money and capital have been able to move around the world with ease over the past few years. Governments appear not to have been aware what was going on, let alone to know what to do now in the ensuing crisis. In fact, it was (mainly Northern) governments that created the enabling environment for such free movement of capital and new financial products in the first place. This paper describes how they did so.

39. Financial entrepreneurs created a 'shadow banking system' over the past 30 years to circumvent regulation and to offload risk onto others, relying on 'derivatives' and 'securitisation'. They generated easy credit that fuelled a boom in corporate mergers and acquisitions across the United States and Europe, and that enabled companies involved in mining, biofuels, private health care, water supply, infrastructure and forestry to expand their activities significantly. When the pyramid of deals came tumbling down, however, the public had to bear the costs.

Many new schemes are afoot to allow the North to pay the South for conserving its forests in return for permission to continue using fossil fuels. But how would a market in pollution rights generated by Reducing Emissions from Deforestation and Degradation (REDD) play out in reality?

37. Private equity has become an integral part of the world's financial system, creating a new type of corporate conglomerate that is reshaping the way business is conducted. It poses new challenges to labour unions, NGOs and community groups because of its influence on taxation policy, corporate governance, labour rights and public services. These challenges are especially clear in Asia, which private equity firms are targeting since the "credit crunch" took hold. Private equity's vulnerabilities, however, may provide opportunities to address public concerns.

Will current plans to expand carbon trading in the US and elsewhere work? No. Carbon trading is aimed at the wrong objective, squanders resources on the wrong things, requires knowledge and institutions that do not exist, is antidemocratic, interferes with positive solutions, and puts ideology above experience.

For many years, Southern Thai Muslim communities have been fighting a destructive gas development backed by Barclays and other foreign banks that has violated their human, religious, environmental and land rights alike. In words and pictures, this book (now in an updated and revised edition) recounts their struggle.

The Corner House and CAAT issued this press release after the House of Lords (the UK's highest court) overturned the High Court's ruling of April 2008 that the Director of the Serious Fraud Office (SFO) had acted unlawfully when he terminated a corruption investigation into BAE Systems' arms deals with Saudi Arabia. The law lords judgment confirms that the UK is in flagrant breach of its duty to implement and give force to the OECD Anti-Bribery Convention.

This statement was issued in response to the House of Lords overturning the judgment of the High Court that the Director of the Serious Fraud Office acted legally in terminating the SFO's investigation into alleged corruption by BAE Systems in its dealings in Saudi Arabia.

This new magazine is aimed at returning the Indian dialogue about climate change and its solutions to the "public space", instead of allowing it to remain the "exclusive property of governments, profiteers and 'experts' of various shades and hues".

This is a submission to the House of Lords in response to an appeal by the Director of the Serious Fraud Office from the independent human rights and law reform organisation, JUSTICE, which is the British section of the International Commission of Jurists. The submission addresses the domestic legal principles by which the legality of a prosecutor's decision to halt a criminal investigation in response to a threat should be assessed, and the relevant international obligations at issue, the OECD Anti-Bribery Convention.

This Corner House submission to a 2008 inquiry by the Environmental Audit Committee into the UK's Export Credits Guarantee Department and Sustainable Development critiqued the ECGD's decision-making procedures concerning sustainable development; its inadequate Business Principles and need for a proactive approach; its due diligence and monitoring; information disclosure; and the OECD and ECA reform.

This second witness statement from Campaign Against Arms Trade updates the House of Lords on official investigations by the US and Swiss authorities into alleged bribery and corruption by BAE Systems in relation to the Al-Yamamah military aircraft contracts.

This Corner House submission to a parliamentary committee scrutinising the draft Constitutional Renewal Bill argues that the proposed legislation does not sufficiently protect the independence of prosecutors and creates a grave risk of abuse by the Government of national security arguments.

A witness statement from Dr John Jenkins of the Foreign and Commonwealth Office, presented by the Serious Fraud Office during its appeal in the House of Lords. 

This third witness statement from Robert Wardle, the former Director of the Serious Fraud Office, was submitted by the Serious Fraud Office in its appeal in the House of Lords.

Slowing and halting new fossil fuel developments has moved to the top of the global climate change agenda. But what are the obstacles to, and resources for, such a project? The 10-year struggle against a gas development project in one corner of Southeast Asia, described in this article in the journal Race & Class, offers lessons in some of the complexities.

The Merowe/Hamadab Dam on the River Nile in Sudan, which was completed in 2009, is the largest hydroproject in Africa. The major contracts were awarded to three European companies: Lahmeyer International, Alstom and ABB. Implementation to date has been characterised by human rights abuses, forced resettlement, illegality and a failure to abide by international standards. The companies consistently failed to use their influence to halt the dam's implementation until issues surrounding its impacts were resolved.

On 10 April 2008, Lord Justice Moses and Mr Justice Sullivan ruled that the decision of the Director of the Serious Fraud Office to drop an investigation into alleged bribes by BAE Systems in Saudi Arabia was unlawful. This is a summary and analysis of that judgment prepared by The Corner House.

On 10 April 2008, Lord Justice Moses and Mr Justice Sullivan ruled that the decision of the Director of the Serious Fraud Office to drop an investigation into alleged bribes by BAE Systems in Saudi Arabia was unlawful. This is their 42-page judgment.

Media coverage was extensive following the ruling by Lord Justice Moses and Mr Justice Sullivan on 10 April 2008 that the decision of the Director of the Serious Fraud Office to drop an investigation into alleged bribes by BAE Systems in Saudi Arabia was unlawful. This is a selection of some leading articles from UK newspapers from 10-17 April 2008.

Even before the judgement has been given on the landmark judicial review of the decision by the UK's Serious Fraud Office to halt its BAE-Saudi Arabia corruption investigation, the UK Government has introduced draft legislation whose effect would be to prevent in future such a judicial review -- and even such an investigation. The Corner House and CAAT are calling upon the public and parliamentarians to voice their concerns about the draft Constitutional Renewal Bill.

Al Gore and many other mainstream environmentalists suggest that calculating and internalizing 'externalities' is the solution to environmental problems. Some critics counter that the spread of market-like calculations into 'nonmarket' spheres is itself a cause of environmental problems. In the course of a study of two real-world examples, carbon accounting and cost-benefit analysis, this article (published in the journal Accounting, Organizations and Society) proposes a possible way of getting beyond this stalled debate.

Hacia un debate diferente en la contabilidad ambiental: Los casos de la contabilidad de carbono y el análisis costo-beneficio

Al Gore y muchos otros ambientalistas de la corriente dominante afirman que la solución a los problemas ambientales es calcular e interiorizar las “externalidades”. Algunos críticos no están de acuerdo y dicen que la causa de los problemas ambientales es precisamente la expansión de la contabilidad mercantil hacia las esferas “ajenas al mercado”. Este articulo (de la revista Accounting, Organizations and Society) propone, a través de dos estudios de caso – los mercados de carbono y el análisis de costo-beneficio –, una salida de este debate improductivo.

This Corner House submission to the Law Commission's public consultation on reforming the UK's antiquated corruption laws looks at corporate liability and at the role of the Attorney General in halting prosecutions of corruption offences where national security concerns have been raised.

The obstacles to tackling the climate crisis are political, not technological, argues this book, which focuses on the most carbon-profligate country, the United States.

Documents released in the High Court on 14 February 2008 reveal that BAE Systems wrote to the Attorney General on a "strictly private and confidential" basis urging him to halt the Serious Fraud Office investigation into allegations that BAE had bribed Saudi Arabian officials to secure the Al Yamamah arms deal. The company argued that the investigation should be dropped on commercial and diplomatic grounds.

On 14-15th February 2008, the High Court heard a judicial review of the Serious Fraud Office's decision in December 2006 to terminate its investigation into alleged corruption by BAE Systems in recent arms deals with Saudi Arabia. This document is a transcript of the court proceedings of the first day, 14 February 2008, on which lawyers representing The Corner House and Campaign Against Arms Trade presented their arguments, and lawyers for the Serious Fraud Office began their defence.

On 14 February 2008 in the High Court, lawyers for The Corner House and Campaign Against Arms Trade presented this outline (or 'skeleton') of their arguments as to why the decision in December 2006 by the Director of the Serious Fraud Office (SFO) to discontinue the SFO investigation into alleged corruption by BAE Systems in recent Al Yamamah arms deals with Saudi Arabia was unlawful. 

A witness statement from the Assistant Director of the Serious Fraud (SFO), Helen Garlick, was released in the High Court on Thursday 14 February 2008 (although dated 31 January) during the judicial review hearing brought by Campaign Against Arms Trade (CAAT) and The Corner House into the SFO Director's decision to terminate the SFO's BAE-Saudi investigation.

The death of Durban environmentalist Sajida Khan calls attention to the life-and-death consequences of the climate justice struggle. If South Africans are to be at the cutting edge of progressive climate activism, not partners in the privatization of the atmosphere, three citizens' networks -- environmentalists, community groups, and trade unions -- must join forces to identify the contradictions within both South African and global energy sector policies and practices and help synthesize modes of resistance.

Documents released in the High Court on Friday 21 December 2007 indicate that the Serious Fraud Office (SFO) investigation into BAE's Saudi arms deals was dropped only after the then Prime Minister Tony Blair sent a personal minute to the Attorney General Lord Goldsmith.

On 9 November 2007, Lord Justice Moses sitting with Mr Justice Irwin granted The Corner House and Campaign Against Arms Trade permission to bring a full judicial review hearing against the decision by the Director of the Serious Fraud Office to terminate the SFO investigation into alleged bribery by BAE Systems in its Saudi Arabian arms deals. Their judgment outlines their reasons for giving permission, and summarises issues relating to the costs of the judicial review.

At an oral hearing in the UK High Court on Friday 9 November 2007, lawyers for Campaign Against Arms Trade (CAAT) and The Corner House will argue that permission should be granted for a full judicial review hearing against the UK Government's decision to cut short an investigation by the Serious Fraud Office (SFO) into alleged corruption by BAE Systems in recent arms deals with Saudi Arabia.

This Corner House submission urges the Woolf Committee, set up by BAE, to look in detail at BAE's use of agents and consultants to obtain contracts, lobbying policies, covert monitoring of NGOs, failure to cooperate with law enforcement authorities, and at how BAE should deal with allegations of its past malpractice.

Featuring photographs by Tamra Gilbertson, Nishant Male and Franceso Zizola, this slide show continues the series portraying the practical, on-the-ground effects of the trade in carbon credits through the United Nations' Clean Development Mechanism and the voluntary "offset" market.

Carbon trading, its backers claim, reduces emissions and brings sustainable development in the global South. But in fact it may do neither, and is harming efforts to create a low-carbon economy. (A Chinese version is appended to the English version.)

Trading in carbon "offsets", which constitutes one part of carbon market arrangements such as the Kyoto Protocol, is ineffective and generally exacerbates local problems. This slide show offers some disturbing photographic evidence.

On 15 August 2007, The Corner House and conservation organisation WWF-UK filed papers at the High Court in a judicial review of the UK's Export Credits Guarantee Department's decision in March 2004 to support the Sakhalin II oil-and-gas project off the far eastern coast of Russia.

The Corner House's 'witness statement' (as part of its joint claim with WWF-UK for a judicial review of the UK Export Credits Guarantee Department's decision in March 2004 to support the Sakhalin II oil-and-gas project off the far eastern coast of Russia) summarises The Corner House's monitoring over several years of the ECGD's environmental, human rights and development policies; its engagement with ECGD on the Sakhalin II project since November 2002; and its concerns about the March 2004 decision.

The European Union, the US and big business are vying with each other to be recognized as taking serious action on climate change. But some of the most important leaders on climate change are groups fighting fossil fuel projects at the grassroots in places such as southern Thailand.

Under pressure to "tame" the threat of climate change to make it seem compatible with business as usual, many scientists have joined policymakers, economists and journalists in treating ignorance and uncertainty about climate as calculable "probabilities". Carbon traders, too, are forced to treat unknowns (and unknowables) as if they were calculable.

For carbon trading advocates, the onward march of "cap and trade" schemes seems unstoppable. But a growing chorus of critics believes otherwise.

ECGD responded to a request under the Environmental Information Regulations for ECGD's information on monitoring the Sakhalin II oil and gas project.