In the last two days an incredible 5,000 Avaaz members from across Scandenavia have contacted Nordea Bank, urging them not to fund a destructive pulp mill in Tasmania, Australia.
For the first time, Nordea bank announced via Twitter today that they would not finance the Gunns pulp mill in Australia if its widely-publicized environmental impacts were not curbed. It's a spectacular example of the power of rapid public pressure to affect global companies, and of the power of the global network: Australian Avaaz members and partners, facing a threatened environmental disaster, appealed to Scandinavians to take action and moved one of the world's leading banks. Increasingly, corporations face accountability everywhere for what they do anywhere.
But the fight isn't over yet! Nordea has to make crystal clear that it won't fund the pulp mill unless specific safeguards are put in place. Click here to read a press release explaining more -- or check out the background information below to learn the history and possible impact of the pulp mill.
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More Information
The proposed Bell Bay pulp mill in Tasmania, Australia was announced by Gunns Ltd. over five years ago.
Gunns is unable to complete the project without significant financial investment, and has so far failed to find such funding.
Nordea and the Pulp Mill
Nordea has been considering financing the pulp mill since 2008 after being approached by Gunns ltd. Today (6 January 2010) Mr. Sjøhelle confirmed that Nordea "would not finance a project in the form presented in the media so far."1
In 2008 a coalition of NGOs including Europe-based BankTrack and Australian organisations GetUp and The Wilderness Society ran an international advertising campaign in the Financial Times which led to more than 15 leading banks ruling out involvement in the project, including all major banks in Australia. Nordea was the only bank to respond that they were considering funding the project. In response to the campaign, Nordea wrote, in an email to the campaigning coalition in August 2008,
"Nordea has been approached by Gunns Ltd. in the initial finance processes of the proposed pulp mill in Tasmania. Nordea has not committed to any financing of the project yet. Nordea is at this stage researching all aspects of the project prior to a finance decision."2
In July 2009, VG Newspaper in Norway ran an expose on the environmental devastation the mill would cause. Nordea Communication Director Rune K. Sjøhelle told the paper:
"We know the project, and Gunns has been in contact with us. Nordea is the biggest bank in the Nordic countries, and the Nordic countres are world leaders on this kind of industry. So it is not surprising that we have been contacted about financing."3 (translated to English)
On September 28, 2009, The Australian newspaper wrote " Gunns' financiers" were "thought to include Nordea Bank."4
As of December 16, 2009, the Australian firm Mimram Planning and Development had a page up on its site describing its work on behalf of Gunns to assess the pulp mill:
"Acting for the project financiers - ANZ and Nordea Banks - Mimram, in collaboration with its European associates, recently carried out extensive and in-depth research into how the Gunns pulp mill project complies with the 9 Equator Principles and their Performance Standards, as promulgated by the IFC (World Bank)." 5
Other investors
Another Scandinavian company, pulp and paper company Södra, have recorded interest in financing the pulp mill. Their involvement has been welcomed by campaigning groups after Södra set minimum benchmarks for any pulp mill development in Australia, saying it would need to be totally chlorine-free (TCF), 100% plantation-based and Forest Stewardship Council (FSC) certified.6
Any pulp mill development should be totally chlorine free, draw 100% on existing plantations rather than virgin forests, and fully assessed to community standards. Crucially, the proposed site of the mill in the Tamar Valley is not a suitable site.
Environmental impacts
Water
The proposed mill would dump 64,000 tonnes of toxic pollution into Bass Strait, Tasmania7. This effluent will contain dioxins and furans--some of the deadliest substances known to science. These build up over time in the food chain, contaminating fish, shellfish, seals and other marine life. Oceanographers have warned that the effluent will frequently blow back to pollute the shore and the Tamar Estuary8. The pulp mill will consume 26 to 40 billion litres of fresh water each year9. This is almost as much as the combined use of all water users in Northern Tasmania10.
Economy
Independent economists have warned that the pulp mill could cost Tasmania's economy up to $3.3 billion. An economic report, commissioned by the Tasmanian Roundtable for Sustainable Industries (TRSI), found that the pulp mill will cost some 1,220 jobs - with 1,044 jobs lost from the tourism industr and at least 175 jobs from local fishing businesses.11
Air
The Australian Medical Association (Tasmanian branch) says the pulp mill 'could cause an increase in the already existing morbidity and mortality from atmospheric pollutants'12. The pollution from the mill will also threaten the viability of local vineyards, farms and tourism.
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1 Nordea Communication Director Rune K. Sjøhelle responds to twitter petition: http://act.ly/1kz
2Email correspondence from Knut Rorbakken, Group CSR Officer, Nordea Bank, 28 August, 2008.
3 "Nordea Vurderer Skandale-Prosjekt" VG, July 9, 2009. Original article http://avaazimages.s3.amazonaws.com/VG%20Nordea%20Article%20Translation.pdf , English translation http://avaazimages.s3.amazonaws.com/Norwegian%20news%20Gunns%20Nordea.png
5 This can still be viewed in Google's Cache: http://74.125.113.132/search?q=cache:AEYdet8cKFwJ:www.mimram.com.au/assignments/anz-nordea-gunns-pulp-mill although it is now offline: http://www.mimram.com.au/assignments/anz-nordea-gunns-pulp-mill/.
6 https://secure.wilderness.org.au/cyberactivist/cyberactions/09_06_sodra-cyberaction.php?
7 Gunns' referral under the EPBC Act, April 2007
8 Dr Stuart Godfrey http://www.cleantamar.com.au/pulp_mill_press_release.html
9 Gunns Ltd, Bell Bay Pulp Mill, Draft Integrated Impact Statement
10 Annual Reports, Esk Water and Cradle Coast Water
11 Business Round Table for Economic Sustainability, http://www.lec.org.au
12 Australian Medical Association Tasmania, position statements, http://www.amatas.com.au/issues/
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