30/05/2017

Loan Bodies’ Adani Conflicts: Answers Needed

Environmental Justice Australia


Environmental Justice Australia lawyers have written to the Northern Australian Infrastructure Facility (NAIF) – the body that is considering giving a $1 billion loan for a coal-carting rail line to service Adani’s Carmichael mine – seeking answers about board members’ conflict of interests.

The letter, on behalf of the Australian Conservation Foundation, raises concerns about:
  • Ms Karla Way-McPhail, a NAIF board member who is also the CEO of Undamine and Coal Train Australia – companies that profit by hiring labour and machinery to coal mining operations 
  • Ms Annabelle Chaplain, a director of the Export Finance and Insurance Corporation (EFIC), which advises NAIF, is an independent non-executive director of Downer EDI, a company that has an existing commercial relationship with Adani Enterprises, the ultimate proponent of the mine
In July 2016 Downer EDI signed a Technical Services Agreement with Adani Enterprises Ltd for the provision of mine planning, design and project execution services for Adani coal mines in India.
“While it is not uncommon for directors to hold more than one directorship, if a perceived or actual conflict of interests arises, directors must act to avoid conflict,” said EJA lawyer David Barnden.
“Ms Karla Way-McPhail is on the NAIF board and is the CEO of two companies involved in the Queensland coal industry.
“Ms Annabelle Chaplain, an EFIC Board member who advises NAIF, is also a non-executive director of Downer EDI, a company with a significant existing commercial relationship with Adani.
“In our view Ms Way-McPhail and Ms Chaplain each have material personal interests that could give rise to a conflict of interests, making it inappropriate for them to be involved in the consideration of a huge public subsidy to a coal-rail project.”
The Australian Conservation Foundation’s Dirty Deeds report last week exposed links between the fossil fuel industry, the government, NAIF and EFIC.
“EFIC has a track record of investing in large fossil fuel projects, backing fossil fuels over renewables at a rate of more than 100:1 over the past 11 years,” said ACF CEO Kelly O’Shanassy.
“NAIF’s board is skewed toward the mining industry and lacks experience with industries such as communications and renewable energy which are critical to the development of Northern Australia.
“Australians want public money to support industries that will create a positive future for Northern Australia – like renewable energy and tourism – not destructive, reef-wrecking coal mines,” she said.

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Federal Labor Feels The Heat Over Adani, And Coalition Is Sweating Too

The Guardian

The biggest environmental campaign seen in Australia since the 80s is causing bumps in the road for both sides of politics
‘One Labor figure puts the problem for his party this way: It is talismanic; It’s the litmus test.’ Photograph: Julian Drape/AAP
When it comes to the Adani Carmichael coalmine, the spotlight this week has been trained on Queensland as the state government battled an internal split on whether to give the project a royalties holiday. There have also been murmurings in Canberra, where Labor MPs are starting to express public opposition to a project many have been privately wringing their hands about.
But to fathom the next phase in the political battle against the project, we need to train our eyes a bit further south.
Over this past week in Victoria, the Greens have launched a new fundraising drive to produce placards which will begin appearing shortly around the electorates of Melbourne, Batman, Wills and Melbourne Ports.
The placards have a simple message, easily consumed from a passing car or tram. They say: Stop Labor’s Adani Mine. It won’t stop with some signage. The Greens are planning to door knock the inner urban electorates where they now slug it out with Labor in hand-to-hand combat during federal elections.
While a couple of Labor MPs, David Feeney and Peter Khalil, have got out ahead of the new onslaught by outing themselves as opponents of Adani, the Greens are telling their supporters the objective is to force the federal Labor leader, Bill Shorten, to rule out supporting the Adani coalmine.
“Here’s our strategy,” the pitch for donations reads. “We know that if Bill Shorten changes Labor’s position and commits to reviewing commonwealth approval, Adani’s plans will be dead. Labor are already starting to feel the heat, and it’s working, with some MPs saying they don’t personally support the plan. But now we need to ramp things up and force a formal change in Labor policy.”
Right now the Greens are focused on Labor in Victoria. But this campaign could easily flow on to other states, and to the seats where the Greens now also face off against Liberals in the inner cities.
If we view the electoral contest through an inner-city lens, Labor is already under acute political pressure on Adani, and the new Greens campaign won’t help. But it would also be a mistake to think Labor is the only major party feeling the heat on Adani. More of that story shortly.
The Greens’ placards have a simple message but it won’t stop there: the party is planning to door knock inner-urban electorates. Photograph: Greens
First we need to take a moment to comprehend the scale of what’s going on. #StopAdani is the biggest environmental campaign seen in this country since the Franklin campaign in the 1980s.
It is well-organised, rolling out in communities (there have been 320 events nationally over the past few months, and another 60 are in the calendar). The issue thunders through social media and reverberates through mainstream press coverage.
The campaign is also very well-funded. One seasoned environmental campaigner told me this week “there is more money in this campaign than in any campaign I’ve seen, anywhere” and noted it wasn’t entirely clear where the money was coming from.
The anti-Adani effort links in to coordinated global efforts by the environment movement to stop new coalmines. #StopAdani (and the associated activities) is the environmental movement’s equivalent of a multinational corporation – with Queensland the local frontline of a global, anti-coal offensive.
Whatever the intrinsic policy merits of constraining new coal development to help the world meet its pressing and existential challenge with climate change (and those merits are blindingly obvious to anyone who accepts the science – if you accept the science, a steady transition away from coal isn’t optional) the major parties remain highly sensitised to the fate of the project.
There’s the enduring Australian bipartisan tradition: the economic exploitation of resources means local employment and export dollars. And the Carmichael project sits, literally, at the epicentre of the political battle, in a region where disaffection has significantly altered the contours of the political contest.
The Coalition and Labor are eyeing off a group of marginal seats in Queensland that could easily decide the outcome of the next federal election. Both are also cognisant of the looming state election campaign. A recent ReachTel poll of 1,600 Queenslanders has the two major parties currently deadlocked 50-50 on the two party preferred measure.
On the politics of this development, Labor is caught uncomfortably between its blue-collar constituency and its progressive, inner-urban support base.
Federally, it articulates a formulation which attempts to placate both camps: Adani should proceed if it meets all relevant approvals because jobs are good – but not at the expense of the Great Barrier Reef, and it shouldn’t get a cent of taxpayer support.
The new Greens campaign, apart from the obvious objective of trying to gain political traction in targeted seats, is about pushing Labor off their hedged formulation into an overtly anti-coal position – which is not a decision the party as a collective is yet ready to take.
Triggering that debate is, in fact, a fast train to splitsville.
So that’s the challenging state of affairs in progressive politics. Now we need to consider the Coalition.
The Turnbull government doesn’t have to straddle the barbed wire fence quite so inelegantly but Adani is causing it grief as well.
Government MPs in north Queensland, where regional unemployment is high, are champions of the project. The chief cheerleader of Adani in Canberra is the resources minister, Matt Canavan, who is also responsible for the development of northern Australia. Canavan sometimes does several media interviews a day extolling the benefits of the project, creating an impression the Coalition is monolithic on Adani.
Canavan is so assiduous in his occupation of the airwaves you can fail to notice that he, and his party leader Barnaby Joyce, are really the only government people out there consistently banging the Adani drum.
In fact if you look and listen closely, apart from a moment of pure, mind-numbing idiocy where the treasurer, Scott Morrison, brandished a lump of coal in the parliament, you’ll notice the Liberal party has dialled the pro-coal rhetoric down in recent months.
Why would this be? Well, if you ask around, you get the feedback that evangelising about coal works in some pockets of the country but it isn’t that politically helpful for Liberal MPs in Sydney and Melbourne with either mixed constituencies – seats such as the prime minister’s electorate of Wentworth in Sydney, or Kelly O’Dwyer’s electorate of Higgins – or even in more blue-ribbon areas, with the sorts of constituencies that were once characterised patronisingly as “doctor’s wives”.
The rolling civil society campaign against the Adani mine – which includes environment groups and GetUp! – means Liberal MPs are getting regular anti-Adani traffic through their doors and inboxes and social media accounts.
MPs around the country are being put on the spot by either GetUp! or local #StopAdani groups who are asking them point-blank whether they support the mine or not.
Two Liberal backbenchers have already come out in opposition to the idea that the project will be given a $1bn concessional loan to fund a rail line linking the mine to Abbot Point: Bert Van Manen and Sarah Henderson.
Apart from what’s playing on out on the ground, there are other bumps in the Coalition road.
There is also strong opposition inside the cabinet to the idea of the Northern Australia Infrastructure Facility granting the loan, despite Canavan regularly arguing the case for a positive decision. One senior government figure is blunt in putting the counter-case. “That is not happening.”
Even if Canavan somehow prevails in a looming internal government battle over concessional support for the development, it’s unlikely to be the end of the story. On that issue, the anti-Adani forces are preparing for a legal fight.
Single issue, negative, “stop the ..” campaigns are always the easiest campaigns to run – just ask Tony Abbott.
They are simple, and they resonate.
All the polling I’ve seen indicates #StopAdani has been enormously effective in influencing public opinion.
Even if people have not yet crossed over into overt anti-coal consciousness because of their concern about climate change, Australians are highly sensitised about the fate of the Great Barrier Reef. Very few people will want a mine project that they fear will damage the reef.
One Liberal said to me forcefully this week when I asked how Adani was playing out on home turf: “Christ, I wish it would just go away.”
One Labor figure puts the problem for his party this way: “It is talismanic. It’s the litmus test. Adani has become shorthand for ‘are you serious about climate change?’.”

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Donald Trump's Paris Climate Change Call Will Define His Presidency

AFRJohn Kehoe

A G7 summit moment: The meeting finished with Western powers far apart. AP
Donald Trump's imminent decision to either quit or remain in the Paris international climate change deal will be his most defining foreign policy call so far.
It will demonstrate the extent of the US President's populist nationalism or pragmatic realism.
Withdrawing the United States would be a massive rebuke to almost every country Trump is trying to work with on a host of foreign policy matters and make his job harder.
The leaders of China, Canada, Germany, France, among others, have personally urged President Trump to remain.
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Paul Bledsoe, a former White House adviser to President Bill Clinton and now American University environmental and energy policy adjunct professorial lecturer, says: "It's one thing to stick out like a sore thumb in climate denial and his anti-climate policies, it's another thing to stick that thumb in the world's eye."

No cost to staying in
Quitting would be telling because Trump does not need to take any domestic environmental steps to stay in the historic deal, thanks to an abundance of cheap and clean shale gas and the fact that US emission cut targets are not legally binding.
Yet Trump will feel he needs to appease his hardcore political base and fulfil his campaign pledge to quit.
As a candidate he called climate change a "hoax" invented by China – a key partner of President Barack Obama's in sealing the Paris global accord.
World leaders remain on edge after Trump refused to agree to climate action at the Group of 7 meeting in Italy on the weekend.
In a veiled swipe at Trump, Germany's conservative leader Angela Merkel, remarked: "The times in which we could rely fully on others, they are somewhat over."
Trump may not care if he becomes an international pariah.

Without US the deal could unravel
But he and Secretary of State Rex Tillerson should be acutely aware that walking away from the historic climate deal will harm US interests to build support on other important security, economic, trade and diplomacy objectives.
None less so than with China's President Xi Jinping, who Trump is trying to woo to help deal with North Korea's nuclear weapons program and to get a better trade deal from Beijing for the US.
Trump's most pragmatic course of action would be to grumble loudly and stay in the historic Paris accord, albeit with some strings attached, such as a review or possible weakening of US emissions targets.
Without the participation of the US, the world's largest economy and biggest historic carbon emitter, the Paris deal could unravel.

Evolving views
The "remain" camp in Trump's inner circle include his influential son-in-law Jared Kushner, daughter Ivanka and former Goldman Sachs executive turned economic adviser Gary Cohn, as well as Tillerson, a former ExxonMobil chief executive.
After the Pope urged Trump to stay in the accord, Cohn said last week the President's views were "evolving".
Exxon, investment firm BlackRock and other big US companies are urging Trump to remain, so business has energy policy certainty.
Nevertheless, much of the modern Republican Party believe man-made global warming is bunkum, despite elders such as former senior cabinet members from the Reagan and Bush administrations – James Baker, George Shultz and Henry Paulson – imploring Trump to adopt a carbon tax.
Fierce nationalists such as chief strategist Stephen Bannon and Environmental Protection Agency head Scott Pruitt are leading the "leave" campaign.

A nation of cheap gas
As the former attorney-general of Oklahoma, Pruitt successfully sued to stop the enforcement of President Obama's clean power plan and is now working to strike out the anti-coal regulations that were designed to help the US meet its Paris obligations.
Environment and Energy Minister Josh Frydenberg met Pruitt in April and told him Australia will honour its international commitments. He stopped short of urging the US not to quit.
The great irony is Trump could stay in the deal, with little or no downside.
The US is on track to meet its 2020 target of a 17 per cent emissions reduction on 2005 levels, thanks largely to price plunges for natural gas and solar, which have made dirty coal less attractive.
Gas-fired electricity generation exceeded coal-powered generation for the first time in the US last year.
Obama's bolder 26-28 per cent emissions reduction by 2025 will be harder to meet and require new policy steps. Trump is trying to gut some of Obama's climate policies, especially on coal, so the target is in further doubt.
Nevertheless, left-leaning environmentalists have repeatedly underestimated the economy naturally lowering emissions through low-emissions technology.

No congressional approval required
Regardless, the US wouldn't cop a penalty for exceeding the voluntary goal.
The Paris deal, unlike the flawed Kyoto pact that President George W Bush rejected, was intentionally not legally binding, partly because a legally enforceable deal would have required US Congress approval.
Nigel Purvis, a former senior US climate change negotiator in the Clinton and Bush administrations, recalls the damaging impact Bush's withdrawal had on the US' international reputation.
"The decision by Bush to reject Kyoto really became a broader symbol of him being unilateral and go-it-alone American power that built up resentment in the international community," Purvis says.
Trump's best climate contribution could be to fulfil a promise to unleash a liquefied natural gas export boom to help replace coal around the world.
Bledsoe says this would have the added benefit of slightly raising the price of gas in the US and making zero-emissions nuclear power price competitive.
With this unpredictable President, anything is possible.
The bottom line is Trump would risk losing foreign partners and harm the US' broader international objectives by abandoning Paris.

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