Financing Pulp Mills: An Appraisal of Risk Assessment and Safeguard Procedures

Book excerpt: This study analyses the risk assessment and socio-environmental safeguard procedures associated with the financing of pulp mill projects. The type and cost of the fibre source is clearly key to the economic competitiveness of any pulp mill. Nevertheless, investment institutions often carry out only limited assessment of the fibre source of the proposed mill. Although a growing number of financial institutions have adopted policies to employ social and environmental safeguard screening for investments in developing countries and transitioning economies, the scope of such screenings is in fact quite limited and they are often implemented ineffectively. [Provided by publisher]