The Green Climate Fund must turn down interest from HSBC and Credit Agricole banks in handling GCF cash due to their huge investments in fossil fuels and involvement in mismanagement scandals, said a statement signed by 170 green groups.

The GCF board meets in Songdo, South Korea next week, and amongst the items on the agenda is considering applications from banks interested in being accredited, meaning they would play a role in managing the Fund’s money.

“The Board of the Green Climate Fund must reject the applications for accreditation of both HSBC and Credit Agricole. Their accreditation would pose serious reputational and moral risk to the GCF,” said the statement, which was signed by green groups world wide, including 350.org, Climate Action Network, Friends of the Earth and Sierra Club.

HSBC and Credit Agricole are among the world’s biggest lenders to fossil fuel projects.

The statement also pointed to the banks’ involvement in scandals, such as HSBC admitting to have allowed Latin American drug cartels to launder hundreds of millions of dollars.

“The accreditation of HSBC and Crédit Agricole would run counter to the GCF’s intent to be a game-changing institution with country ownership at its core. In turn, the GCF Board’s rejection of their applications would be a strong mark in favor of maintaining the integrity of the Fund,” the green groups said.

By Stian Reklev – stian@carbon-pulse.com

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