May 2014

Greetings from Amazon Watch:

In our Spring 2014 issue, we bring you the latest updates and investor risks associated with companies operating or investing in the Amazon region, including two in-depth reports:

Beijing, Banks and Barrels: China and Oil in the Ecuadorian Amazon examines China's growing presence on Ecuador's oil frontier, highlighting the irreversible impacts on the Amazon rainforest, indigenous peoples' rights and Ecuador's national sovereignty. Chevron's Mockery of Justice: How Judge Kaplan's Decision Suffers from Five Fatal Flaws is a summary of the CVX-RICO case which threatens not only the Ecuadorian plaintiffs and their legal team, but also the ability of civil society to hold corporations accountable for their environmental and human rights abuses around the world.

We also bring you the latest updates on grassroots efforts to defend the Amazon, indigenous rights and hold corporations accountable in Ecuador, Peru, Brazil and around the world. On May 21st, communities around the world are mobilizing for International Anti-Chevron Day and calling on individuals and governments to stop buying Chevron until it meets its legal obligations.

As I'm sure you are aware, the playing field has changed dramatically in Ecuador, particularly in the last 8 months. Last August, President Correa announced drilling in Yasuní-ITT sparking a civil society campaign to defend Yasuní via a referendum to keep oil in the ground. Last month, over 3,000 indigenous peoples and environmentalists delivered nearly 800,000 signatures needed to qualify for a national referendum, but have been met by grave electoral irregularities sparking public outcry and a call to not only defend Yasuní, but democracy itself. This follows the outcry after the government shut down indigenous rights nonprofit Fundación Pachamama in December, just days after the 11th Round failed.

Despite a yearlong effort to auction off 16 oil blocks in the Amazon that seven indigenous nationalities call home, the Ecuadorian government received only four bids from mostly state oil companies, including Chinese conglomerate Andes Petroleum, BelOil, Chile's ENAP and Repsol. We have had communication with Repsol to express our concerns and encourage the company to withdraw its bid. In the Northern Peruvian Amazon, Repsol is selling its stake in controversial oil operations in Block 39, a remote part of the Peruvian Amazon inhabited by indigenous people in voluntary isolation.

And finally, as the Brazil scurries to prepare for the World Cup this summer, social conflicts related to the construction of mega-dams and attacks on indigenous rights increase. We have continued to stand by our allies in calling for justice on the Xingu and Tapajós Rivers, investments in renewable energy instead of dirty dams and corporate accountability of companies including GDF Suez and Siemens in Europe.

As always, Amazon Watch is thankful for the work of socially-conscious investors and we hope that this newsletter provides valuable information for you in your ongoing work.

For the Amazon,

Adam Zuckerman
Environmental and Human Rights Campaigner

Beijing, Banks and Barrels:

China and Oil in the Ecuadorian Amazon

Amazon Watch's report highlights China's growing influence in Ecuador and what it means for Ecuador's sovereignty, indigenous peoples and the fate of the Amazon rainforest. We analyze how Ecuador's dependence upon Chinese loans has pushed the Andean nation to open up its Amazon to large-scale industrial and extractive projects including oil drilling and mining. The report concludes with a look at new Chinese regulations that could serve as important accountability checks for Chinese investment in the Amazon.

Chevron's Mockery of Justice:

How Judge Kaplan's Decision Suffers from Five Fatal Flaws

A new report concludes Chevron made a "mockery of justice" and bribed a witness during its retaliatory RICO case in New York, leading to a likely reversal by U.S. appellate courts and a growing risk for the oil giant in jurisdictions where the villagers are trying to seize assets to pay for a clean-up of their ancestral lands. In response to Chevron's actions in the Ecuador case, prominent environmental and human rights organizations publicly condemned the company in a statement released in December.

Communities from Five Countries Blast Chevron Over Shoddy Environmental Practices

Launch Global Campaign Against Company and its Products

On May 21 – International Anti-Chevron Day – demonstrations against Chevron are being planned in several countries around the world, including Ecuador, Argentina, Nigeria and the United States, calling for international solidarity for those seeking redress for Chevron's social and environmental harms. Until Chevron complies with its legal obligations, communities and their allies will be calling on all citizens and governments around the world not to purchase any products with the Chevron brand or brands owned by Chevron subsidiaries, including Texaco. On May 28, Chevron's AGM will be held in Midland, Texas.

Ecuadorian Military Breaks Yasunidos Blockade

On April 12 over 3,000 indigenous peoples and environmentalists delivered nearly 800,000 signatures to the National Electoral Commission – 172k more than necessary to force a national referendum to defend Yasuní-ITT. Five days later the military broke a human blockade by Yasunidos to take away the signatures amidst protests over grave electoral irregularities.

Repsol Sells Oil Stake in "Isolated" Indigenous Peoples' Territory in Peruvian Amazon

David Hill reports that Repsol is selling its stake in controversial oil operations in Block 39, a remote part of the Peruvian Amazon inhabited by indigenous people in voluntary isolation. Repsol's move follows pressure from institutional shareholders, including Norway's Ministry of Ethics, which recommended that Norway's Finance Ministry divest from the company due to its operations in the area. Repsol recently placed a bid on Block 29 in the Ecuadorian Amazon, home to the Kichwa. They still retain a stake in the Camisea gas project, the majority of which is inside of a reserve for indigenous peoples living in voluntary isolation.

Brazilian Indigenous Movement Denounces GDF Suez Over Amazon Dams

On April 28, GDF Suez's annual shareholder meeting was met with protests calling for the company's divestment from destructive dam projects in the Brazilian Amazon. The protest was a solidarity action with Brazil's indigenous movement, which sent an open letter to GDF Suez CEO Gérard Mestrallet, denouncing the company's broad violations of human rights and environmental norms linked to the Jirau mega-dam on Brazil's Madeira River and demanding an overhaul of the company's indigenous consultation and environmental safeguard policies.

Siemens Denounced for Damming Latin America's Future

On January 28, dozens of protesters from a coalition of Brazilian, German, French, and American organizations staged a demonstration outside the shareholder meeting of a leading German corporation Siemens, denouncing the company's controversial role in some of the world's most notorious hydroelectric projects including Brazil's Belo Monte mega-dam and the Honduran dam Água Zarca.

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