Cayman plays part in Amazon deforestation
Deforestation in the Amazon
(CNS): A new report published by researchers this week in the academic journal, Nature, Ecology and Evolution, states that tax havens and offshore financial centres, including the Cayman Islands, are supporting unsustainable practices such as Amazon deforestation. While tax havens have long been blamed for the negative socio-economic consequences of the global financial system on developing countries in particular, this latest report is the first to find a direct negative connection between offshore finance and threatened ecosystems.
The report, “Tax havens and global environmental degradation“, highlights the lack of previous research about the impact of tax-neutral jurisdictions on the environment, but this first foray into the topic already raises concerns. The study analyses how tax havens influence the sustainability of the ocean and the Amazon rainforest as two key examples of delicate eco-systems under threat.
“Our analysis shows that the use of tax havens is not only a socio-political and economic challenge, but also an environmental one. However, financial secrecy hampers the ability to analyse how financial flows affect economic activities on the ground, and their environmental impacts,” Victor Galaz, lead author of the new study, said in a release.
Allegations of secrecy, which are constantly denied by all off-shore financial centres, is noted as a key challenge to furthering this research. “The absence of a more systemic view is not surprising considering the chronic lack of data resulting from the financial opaqueness created by the use of these jurisdictions,” added Beatrice Crona, executive director of the Global Economic Dynamics and the Biosphere programme (GEDB) and co-author of the paper.
Cayman is singled out as being instrumental in moving and managing the financing for major beef and soy companies in the Amazon Basin. The paper includes the first quantification of foreign capital that flows into these sectors operating in the Brazilian Amazon both linked to deforestation.
“Our analysis shows that a total of USD 26.9 billion of foreign capital was transferred to these sectors between October 2000 and August 2011. Of this capital, about USD 18.4 billion was transferred from tax haven jurisdictions,” the authors state in the report. The Cayman Islands turned out to be the largest transfer jurisdiction for foreign capital to the key companies, the report found.
Other jurisdictions are noted for their part in the finances related to the illegal, unregulated and unreported (IUU) fishing industry, as 70% of ships that support it are, or have been, flagged in a tax haven such as Belize and Panama.
“The global nature of fisheries value chains, complex ownership structures and limited governance capacities of many coastal nations, make the sector susceptible to the use of tax havens,” Henrik Österblom, another co-author said.
The work is part of an on-going wider research project called “Earth System Finance: New perspectives on financial markets and sustainability”, which is a collaboration between GEDB, Stockholm Resilience Centre (Stockholm University), Future Earth, and the UNEP Finance Initiative.
See the full report here
Category: Business, Financial Services, Land Habitat, Science & Nature
the culprits are our Brazilian politicians, who defend their own interests and not the interest of the nation!
Ad- Hoc Fallacy
This is an intellectually dishonest article and not based in any quantitative our multivariate evidence that the blame should be placed on Cayman. It is appalling what passes for academic work. Self serving misinformation.
Don’t let this article distract you, I blame Alexander Graham Bell and Thomas Edison for Deforestation. Without electricity and communication it would be pretty hard to transfer money..Then of course there’s Nicklaus Otto, hard to mow down forests without an internal combustion engine. So there’s that.
You mean Henry Ford. We don’t by the German version of history.
On a serious note, just because some people indirectly contributed to the destruction of the earth doesn’t mean we have to continue down that path. Get it?
What did Henry Ford have to do with the invention of the internal combustion engine? Think you are mixing up car engines with the pioneering of mass production. Not exactly US vs German versions of history.
Actually, that was a version of US history I was taught in grade 3 about 55 years ago. At least that’s how I remember hearing it.
Oh. I see you don’t get it.
The comments here are laughable. One only can recall what seven mile beach used to look like from the road in the 80’s now look at it now all in the name of one man’s dream….”I build and concrete it, businesses in George Town will have no choice but to move or closed and George Town will be mine…..ha, ha, ha, all MINE”.
I would worry more of the deforestation in Cayman than somewhere else in the world.
So, the period in question is 2000-2011 (at least seven years ago) and the loosely extrapolated assumption is USD$18.4 billion (over that period) attributed whimsically to “tax-havens” as a collective, of which “the Cayman Islands” is accused of playing some witting role in how much, and by whom specifically? Why not provide the names of entities, dates, and amounts if they have such sure access to this data and are hurling the accusations? Otherwise it’s just easily-quashed defamation (if we had competent counsel). Why don’t we fight this stuff?
usually people dont realize human effects on deforestation until it too late!? tipping point in 2050….when kids and grandkids baking in heat…widespread famine…drought…starvation….oh man..what a legacy we presently leaving behind???????
But 8:13 ,no one can control what’s to come , that’s control by the one and only ,the great God almighty , just be ready my friend ,cause there is a great God that’s in charge … All the best .
Well he done messed up good this time.
Very disappointed that the CNS article does not include a Cayman viewpoint. It is against Cayman law for the territory to be used for illegal transactions so why is Cayman the villain? If the writers are really concerned about the planet rather than their own ideology then they would hold responsible the Brazil government and the companies actually doing the deforestation. The conclusions in the article are also questionable. This is simply yet another attempt at bullying.
CNS: The point of putting this article on a Cayman-based website is to let the people in the Cayman Islands know what is being said about this jurisdiction and why, otherwise all they would know about outside perceptions of Cayman would be the self-congratulatory attaboy press releases issued by the government. The matter was covered in British and European media – the authors are based at Stockholm University – where it would be read by millions. CNS has no power to influence the voters or decision-makers outside these islands, either in environmental or financial issues. The large majority of our readers are right here and that’s who we focus on, to raise red flags about things the government would rather hide from them. It seems to me that this comment is more of the same obfuscation. Attack the messenger, because that’s really going to help.
My thumbs-up goes to the CNS reply !
Bravo to CNS for getting the view point in front of Cayman readers. A follow up piece or a link to an article which contains counter commentary, however, would be a good way to continue educating the public about why these labels and portrayals of the Cayman Islands are so unfair and untrue.
Methinks the McDonalds quarter-pounder with cheese is more to blame for deforestation than Cayman…
Yep, and all fast food joints are guilty of so much more…bad nutrition, encouraging binge eating (2 for 1 offers), contributing to obesity which probably increases more methane gases and waste in the environment and of course the encouragement of unsustainable farming using the cheapest way to produce meat, not the best way.
And Holland is to blame for everything that happens after people drink a few too many greenies on a Saturday night.
Where are you Super Genius Onlne PhD Cadre? Papa can you hear me…
First of all Cayman is not a tax haven!! Financial centers keep the wheels of the industrial world running smoothly and to our chagrin we the Caymanians really don’t get anything out of it. We should be charging them one percent on all funds passing through our books. The industrialized countries need to police their own terra firma , stop expecting Cayman to pass laws for them. Govern your own people and stop blaming Cayman for your lack of control. They want to eat their cake and have it.
Weak.
Dear God, Cayman gets nothing out of it, except thousands of jobs and half of CIG revenue. Get a clue.
We the Caymanians really don’t get anything out of it – other than 2/3rds of government’s entire revenue, going to pay for everything from roads to education and the employment of thousands of civil servants, the majority of them Caymanian.
A truck load of crap!. It is amazing how much rubbish educated persons will write. If you can’t get good data because of secrecy as you stated, then do what you always do- make it up.
Once you start addressing people as Dr. , all of the problems we have will vanish.
Like “foweva honable” you mean?
all in the name of money and greed! sad! ????
Sick people behind this study.
Trying studying the results of the over 100 years of industrialisation in Western Europe and North America.
These buggers are so transparent – you can smell and see them from miles off.
Take OXFAM, for example, what have they really done about their officers’ rape of underage girls in Haiti and other struggling countries? Then, they have the stomach to publish reports that try to name and shame countries that try to make their way.
Sickos!
Everybody wants to write a book now and blame everyone else. Developed countries cause the most green house gas and now they are looking to blame someone else. Fake news.
Own up buddy-boy.
so $18.4 billion was transferred to beef and soy companies though low tax jurisdictions. Do the authors of the report really imagine that by eliminating offshore financial sectors these sectors would not be funded at all? or perhaps the funding would come from somewhere else? In which case the fact that low tax jurisdictions are being used is a moot point.
The real issue here is control. What they are attempting to accomplish in the world is control and ‘tax havens’ takes away just a little bit of control. It is the European world view – world control – one world – big government.
Someone should tell them that Brazil is a country and not a rain forest. They should try reforestation of Europe to save the planet.
““The global nature of fisheries value chains, complex ownership structures and limited governance capacities of many coastal nations, make the sector susceptible to the use of tax havens,” Henrik Österblom, another co-author said.” Yes because we force them at gun point to use us.. Or maybe West Bay Premier and Who have been bullying them again and forcing them to use us.. Shame on the two of you.. LOL Leave those poor defenseless coastal nations alone.
So if Cayman said no to transferring the money of these beef and soy companies, does Osterblom really think they would not be able to transfer money? Once again we are painted as devils. This is like saying UPS or FEDEX should be blamed from fostering the drug trade because someone sends drugs using their service. I’m sorry Henrik Osterblom but you are an idiot in this respect.
Not sure how fair this article is. Consumer spending and behaviour is the biggest driver of deforestation. How they move their cash appears to be a distraction technique. Gentle reminder but 83% of consumer spending is driven by women. Those are real world facts.
This headline would be more appropriate as “women consuming mother nature in record numbers”.
Not to mention having a hand in the illegal mining of metals and toxic runoff that goes with it. Keep the $ flowing boys, we are doing our PR best to look squeaky. Wait for it, I suppose this study is rigged too.
We don’t do trees here, just concrete. Concrete absorbs CO2 from the atmosphere too but trees give back precious O2, This is most likely what our selfish politicians and developer buddies don’t want to hear as it would spoil the mood in their regular circle jerks together.
Perhaps the headline should read “Greedy 1% Up To Their Usual Money Grabbing Tactics”.
Really???
What next will we be blamed for?
The question is when will you take responsibility for anything.
At the same time that you finally do!
Numbnut!
You make my butt numb. Thank you. I love you.
Well Ive heard it all now. Cayman is to blame for increased farming and logging in the Amazon. What a load of BS. Some will stop at nothing to shut us down. I wonder who funded that report?
Bollocks!! The governments of countries where the deforestation is occurring are responsible. If they wanted to stop it they would. Simple.
Another job for our super genious online PhD carde. I am sure they are already 10 steps ahead of this article.
Cadre or Carde?