Green Resources' Forestry Projects are Negatively Impacting On Local Communities – Donor

The Finnish Development Finance Iinstitution (FINNFUND) is concerned about effects from its own financed carbon offset projects in Uganda that have negatively impacted on the local communities. FINNFUND is an investment arm of the Finnish Government, with financial support of up to US$ 25 million to the Green Resources Forestry project.

The Agency’s concern follows growing anxiety about the activities of the project with total disregard to lives and the ecosystem of the local communities adjacent to the project.

In the 1990’s, Green Resources acquired a 50-year licenses to engage in plantation forestry in two central reserves of Kachung and Bakaleba in Dokolo and Mayuge districts respectively, covering an area of 11,864 hectares.

In 2014 Oakland Institute released an investigative report, which exposed the company’s mis-conduct, pointing out that local communities were deprived of vital resources, experienced violent threats, amidst lack of clarity in regards to land ownership. It also points out corporate pollution of land and waterways by agrochemicals used in forestry plantations.

Reports from Oakland Institute, suggest that following the exposure of Green Resources’ poor conduct at Kachung site, the state-owned Swedish Energy Agency – Green R sources’, the only carbon credit buyer – stopped payments to the company in November 2015.

Swedish Energy Agency was touted as the longest carbon deal – running between 2012 and 2032

In March 2017, the Agency commissioned an audit to analyze Green Resources’ progress related to its (Swedish Energy Agency) earlier demands as ‘compliance’, ‘partial compliance’ or ‘non-compliance’. These included: social and economic assessment of Kachung’s local population; food security; energy saving cooking stoves; cattle grazing; communication and grievance mechanism; anti-corruption; land ownership and boundaries; firewood collection; rehabilitation of water points; and road maintenance.  However, the findings of the audit report exonerated Green Resources on nine areas and accusing the company for being non-complaint on the issue of food security.