French environment minister announces partnerships in Iran

France’s environment minister signs a plan for French firms to help tackle Iran’s environmental problems, but criticizes the refusal of her country’s banks to work with the Islamic republic.

Segolene Royal met in Tehran with the head of Iran’s Environmental Protection Organization, Massoumeh Ebtekar, and a group of ministers, agreeing to work together on the water shortage, energy efficiency and pollution problems facing Iran.

She is travelling for three days with senior business figures from French environmental and renewable energy firms, including the boss of multinational Engie.

But both sides are aware that the refusal of major French banks to work in Iran is a huge obstacle to working together.

“It’s a real problem. It’s been raised by the Iranian ministers but also by French businesses,” she told reporters in Tehran.

“It’s completely unacceptable. We can’t ask Iran to make efforts on energy transition… while the financial system doesn’t respond, including on industrial cooperation that could help deal with energy, climate and pollution issues,” she said.

Despite international sanctions being lifted under a nuclear deal with world powers in July 2015, major banks remain fearful of working in Iran in case they fall foul of remaining US sanctions related to its human rights record and ballistic missile programme.

— AFP