14/12/2017

How Trump’s Reckless Climate Policy Invites A Judicial Backlash

Vox - David Bookbinder*

The worst way to do policy is through the courts. But that could be where we’re headed.
Southern Greenland. Education Images/UIG via Getty Images
Along with his fellow climate-denial zealots in the Trump administration, EPA Administrator Scott Pruitt appears hell-bent on rolling back virtually every limit on greenhouse gas emissions he can get his hands on.
And while the administration’s dismantling of these measures is an environmental setback in the short term, the potential silver lining is that in the long term, the result may be precisely the opposite of what Pruitt & Co. intend.
While (quite literally) the rest of the world acknowledges that climate change is (again, literally) an existential threat, Congress continues to ignore the crisis. And now the executive branch is moving aggressively to scrap almost all previous efforts to reduce emissions. Like nature, policy abhors a vacuum, and we have seen some reaction already in the form of increased state regulatory efforts. Virginia is preparing to join the Regional Greenhouse Gas Initiative, the nine-state cap-and-trade system for power plant emissions, for instance, and Phil Murphy, New Jersey’s incoming Democratic governor, has promised to do likewise.
But there is another player waiting in the wings to step in to deal with the policy mess the Trump administration has created: the courts. Judges have done this before — think of civil rights, when Washington’s failure to tackle the problem of racial inequality in education led ultimately to Brown v. Board of Education — a sweeping intervention belatedly supplemented by Congress a decade later by the Civil Rights Act of 1964.
Washington’s climate policy failure may inspire similar a judicial move. Indeed, two new types of cases are beginning to wend their way through the system, both of which have the potential for dramatic impacts extending far beyond the wrangling over the legality of each particular EPA action (or inaction).
(The enviros have won the opening rounds in those fights: EPA was judicially shot down after it attempted to declare by fiat that certain Obama-era rules would not go into effect — including a new methane-emissions standard for oil and gas production. But Pruitt has hired Bill Wehrum, who has been busy litigating for industry against the Obama climate measures, as his assistant administrator for air, precisely to oversee their formal rollback. Environmental groups have limited tools to stop that formal process.)

The first line of legal attack against the Trump administration
Last year a group of children sued the government in federal court in Oregon (Juliana v. United States), claiming that they had a constitutional right to a climate capable of supporting human life, and that the government has a “trustee” responsibility to maintain the atmosphere free of “substantial impairment.” Their goal is to get the government to draft, and then execute, a comprehensive plan to dramatically reduce US emissions using the full panoply of federal authority.
The government’s response to the suit was, in part, to describe its “strong” and “substantial” efforts to tackle the problem via various regulatory measures, and to urge the court to therefore “decline Plaintiff’s invitation to short-circuit” this process. But District Court Judge Ann Aiken did not buy it. Refusing to defer to the government (the outcome you might expect), she held that the case could go forward, and in doing so, noted, “Federal courts too often have been cautious and overly deferential in the arena of environmental law, and the world has suffered for it.”
This week, Monday, the Ninth Circuit Court of Appeals will hear argument on that decision. Pruitt has been targeting almost all previous efforts to reduce emissions, including vehicle tailpipe standards and emissions limits at coal- and gas-fired power plants. None of the developments since Judge Aiken’s decision are likely to persuade the Ninth Circuit that she got it wrong.
Nor is the Ninth Circuit the only court in which the Trump administration’s climate rollbacks will be an issue. On November 6, Pennsylvania’s Clean Air Council filed a similar case in federal court in Philadelphia (Clean Air Council v. United States), alleging that the government has violated its constitutional duty to maintain a stable climate system, and violated its trust responsibility to preserve natural resources — including the atmosphere. A solid 16 pages of the complaint describe the administration’s war on climate science and its reversal of the Obama administration’s (unfortunately modest) climate efforts. The plaintiffs argue that these actions “increase the clear and present danger of climate change.”
Ultimately, of course, the Juliana plaintiffs would have to convince the Supreme Court. And while they’d have a steeply uphill battle if the high court were asked to vote today, the dynamic will change as the climate problems get worse, and as the record grows richer as lower courts review the facts and weigh the legal issues.
The constitutional claim that would demand a particular climate policy remains an extreme long shot, but courts have been sympathetic to the view that the government has a “public trust” duty with respect to natural resources. Five years from now, the Juliana plaintiffs might well have a chance of swaying five justices.
Trump and Pruitt. AP Photo/Andrew Harnik


Meanwhile, suits in state courts seek compensation for the costs of adapting to climate change
While Juliana and Clean Air Council seek a serious and comprehensive government regulatory effort, another set of cases seek to effect change by going after a different set of actors: corporations contributing to global warming. Local governments along the California coast have filed five cases under the centuries-old “public nuisance” doctrine. Here, the plaintiffs seek to get the fossil-fuel industry to help pay for the expense of adapting to sea-level rise caused by climate change.
Importantly, these nuisance cases are in state court, which means they will likely avoid this Supreme Court, which has zero interest in holding corporations accountable for their environmental externalities. Importantly, at bottom these cases are about property — not complex constitutional jurisprudence or abstruse concepts like the public trust doctrine. Judges are extremely familiar with property; the root of the common law could be summed up as, “You did something that damaged my property and so now you have to pay for it.”
If and when those claims reach the California Supreme Court — they are currently locked in jurisdictional wrangling — the Trump administration’s actions will not make those judges any more inclined to leave this issue to the fools in Washington.
Thus, ironically, the Trump climate agenda, by making judges sympathetic to arguments that might have seem far-fetched a while ago, may help save the planet after all. That’s the good news. The bad news is that, from a national policy perspective, it will do so in the least efficient way imaginable.
Climate policy is no different than most other national issues. The best solution is tailored congressional legislation. The second-best solution is a regulatory program using existing agencies and legal authority.

Intervention by the courts isn’t a great way to make policy, but it may be all we’ve got
The third-best solution, by far, is leaving this to whichever state and federal judges are randomly assigned to these cases, to rule on the specific claims raised by a given set of plaintiffs against whichever defendants they’ve sued, and awarding whatever relief is appropriate for the particular facts, legal claims, and parties are in their courtroom. (Full disclosure: I’ve written an amicus brief on the public trust doctrine in Juliana, and have been consulting with lawyers working on the nuisance cases.)
But that third-best option may be the only avenue now open. Back in 2007, when the Supreme Court held that CO2 was a pollutant that could be regulated under the Clean Air Act, Republicans bemoaned the “regulatory train wreck” that would come from just EPA Clean Air Act regulation. And that was a single agency using its authority under one statute. Trump’s election put that effort on hold, but the day may come when those Republicans wish they could rewind time and accept that train wreck.
Consider the range and complexity of the legal attacks on those who refuse to act to ameliorate global warming. Judge Aiken is being asked to order the entire federal government to come up with a plan to phase out fossil fuel use; the Pennsylvania case asks for an order ending the regulatory rollbacks.
Two of the California cases assert a single claim in an effort to make five oil companies pay for San Francisco’s and Oakland’s cost of building seawalls and other infrastructure made necessary by to sea level rise, while the other three California cases assert eight separate legal grounds for why some three dozen fossil fuel defendants should not only pay their adaptation costs, but punitive damages as well.
Additional local government cases — both in California and elsewhere — are in the works. Each state, and each state’s laws, represents a separate opportunity to establish liability, improving the likelihood of success somewhere. And entire states are contemplating the same sort of cases against the fossil fuel companies that they brought against the tobacco industry. (The suits would analogize the costs of adapting to a changing climate to the increased health care costs that they were forced to bear due to smoking.)
In other words, with the government unwilling to deal with climate issues, lots of clever lawyers are busy thinking up new and exciting ways to screw with the fossil fuel companies.
There you have it: The Trump administration’s climate policy (for want of a better word), may precipitate a judicial reaction eventually leading to greater restrictions on fossil fuels than anything contemplated under the regulatory program Scott Pruitt inherited. And if that happens, it will achieve this in a far more fragmented, ad hoc, uncoordinated — and thus significantly more expensive — manner than any such regulatory program.
Unintended consequences, indeed.

*David Bookbinder is the chief counsel at the Niskanen Center, a libertarian think tank in Washington, DC.

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Beyond Our Control: An Alternative Approach To Climate Change

The Conversation - *

Patrick Stollarz/AFP
The COP23 took place in Bonn, Germany, from November 6-17. Participants in these annual climate conferences are driven by the idea that they can control the global rise in temperatures with resources and willpower. The recent proposal for a Global Pact for the Environment is also founded on this premise.
The same belief in control applies more generally to flows generated in all areas of human activity: since they are man-made, we assume that we can simply stop, unplug the machine so to speak, and the flows will cease. Numerous systems (relating to waste, data, capital, and populations) are built around this idea.
But it is an illusion. Stakeholders – that is, states, businesses and individuals – are increasingly overwhelmed by the flows they themselves triggered.

Climate change
Greenhouse gases are a perfect illustration of this loss of control: once released into the atmosphere, they are beyond the reach of humans as they accumulate and move freely above us.
Stakeholders in climate negotiations – such as the COPs – strive to wait out the (lengthy) period over which the existing gases will dissipate and to reduce current and future emissions.
But while the second point may appear to depend solely on the will of negotiators, it is in fact highly conditional, since it is not sufficient for one country, company or person to drastically reduce emissions. Everyone must take action if we are to achieve the desired effect worldwide.
The possibility of a scenario beyond human control prompts us to posit the existence of “total uncontrolled flows” and establish a theory of their [governance].
When applied to climate change, this perspective calls for a new platform for global discussion and negotiation, based on the assumption of a loss of control.

A brand new way of debating
Current efforts in climate negotiations are concentrated on public policy and civic measures to reduce greenhouse gas emissions. These measures aim to bring global warming below a 1.5°C threshold, with a maximum limit of 2°C set for 2030. The idea is to use the intervening time to help endangered areas (under threat from rising sea levels, for instance) adapt to the problem.
Given the possibility of a scenario beyond human control, a second significant round of discussions and negotiations should be undertaken within the COPs.
These talks would focus on the following question: how can we prepare for scenarios in which the global flows of greenhouse gases reach uncontrollable (meaning higher than currently anticipated) levels? Within these discussions, there would be no pretence that either the causes or effects of the phenomenon can be contained. Instead, their total and uncontrollable nature would be faced head on.

A necessary utopia
Here are three of the various reasons that explain why this approach would be valuable.
  1. The problem could be examined from a distance, well before we are confronted with the issue of managing the crises that will occur if “point-of-no-return” thresholds are exceeded.
  2. The extreme risks would no longer be denied. While it is clearly impossible to know in advance precisely when and how a disaster scenario may occur, they can be monitored and, to a certain extent, measured.
  3. Conducting analysis based on a loss of control would also provide an opportunity to think about how we can respond to the violence that would be unleashed should thresholds be exceeded. This would open up debate on the adoption of strict anticipatory measures, such as a global ban on the use of certain energy sources, or a worldwide tax on said sources, which would destabilize the economic models underpinning them.
Such dramatic scenarios may seem utopian, but they must be examined now so that all stakeholders face up to their responsibilities.

*This article was published in partnership with the online review La pensée écologique, headed by Dominique Bourg. It is an excerpt of an article on global climate change governance.

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Bringing Women Together To Fight Climate Change

Salon - Lauryn Higgins*

In Asheville, the Collider is changing the climate conversation — by including female voices
Credit: Lauryn Higgins
“We’ve come a long way, baby,” Marjorie McGuirk, the president of CASE Consultants International, tells me. It’s a Friday morning in Asheville, North Carolina, and McGuirk is mingling among other professionals at The Collider’s monthly coffee hour.
The Collider, a non-profit organization founded in March of 2016, is one of the first of its kind. A self-proclaimed innovation center that offers co-working, event space, monthly mixers and networking opportunities, all for companies focused on creating climate change solutions, it's located in the heart of Climate City.
Its tagline, “Where business and science collide,” might sum it up best.
For business owners like McGuirk, The Collider provides opportunities not only for business ventures, but for a dialogue to be had. “There’s no denying climate change is real. That conversation is over, and now we must direct it towards creating solutions.”
While the discussion surrounding climate change has come a long way, McGuirk’s earlier remarks refer to another issue that has plagued the field of science and business for far too long — the lack of women at the table.
Eileen Shea, the current Pacific Islands Regional Coordinator for the National Oceanic and Atmospheric Administration, recounts her early career days of being the only woman in the room. "Back before cellphones were a thing, if someone would call the front desk of an office and ask to speak with me, the receptionist would ask how to identify me. The person calling would always say, 'Eileen's the only woman in the room or the meeting, you can't miss her.'"
Shea's extensive education and career in weather and climate related science make her an anomaly amongst her peers, but one could argue the city that houses The Collider and women like Shea and McGuirk is also an exception to the rule.


The youngest staff member, 17-year-old Molly Pruett, found The Collider through a summer space camp. When she heard about an opening for an events assistant, she submitted her application the same day.
She recounts, "Asheville is certainly an outlier, especially in regard to gender roles. There's been a lack of female representation in science for a long time, but I'm seeing the shift and I'm excited to be a part of it."
Pruett attends the Nesbitt Discover Academy, a highly selective and application for entry public STEM high school in Buncombe County that gives students college credit for coursework as early as their freshmen year.
Pruett's inspired by the all-female in-house staff at The Collider and the women who have paved the way, but she notes, "When using your voice, regardless of what you are speaking for, you should do so eloquently and do it well. I think that applies to everything in life, but it's definitely something I'm taking with me in my career."
The Collider's executive director, Megan Robinson, notes that women are not only a necessity to providing climate change solutions in the field of science, but in every field. "Providing basic education for women and girls everywhere can be the way we change the trajectory of climate change and climate science."
A recent study by Project Drawdown cited that educating women is "one of the most powerful levers available for avoiding emissions by curbing population growth. Women with more years of education have fewer and healthier children, and actively manage their reproductive health." Robinson adds, "It's encouraging to see women in all fields of climate science emerging into leadership roles and it's changing the course for what is to come."
Shea wraps up the coffee hour by finishing her story about the days as the only woman in the room. She finishes with, "We're not alone anymore, but that doesn't mean we have to stop taking care of one another. We're an asset to our communities and that in and of itself is empowering. Science is simply the common denominator. "

*This feature is part of Salon’s Young Americans initiative, showcasing emerging journalists reporting from America’s red states. Read more Young Americans stories.

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13/12/2017

World's Biggest 100 Polluting Companies Put On Notice By Investors To Tackle Climate Change

Fairfax - Nicole Hasham

Shareholders have turned up the heat on the world's 100 biggest polluting companies including Australian firms BHP Billiton, Wesfarmers and Rio Tinto, in the first coordinated global effort by investors to force corporate action on climate change.
The Climate Action 100+ initiative, to be launched in Paris on Tuesday evening eastern standard time, will target 100 global companies responsible for an estimated 15 per cent of global emissions.


Water bills headed 'same way as energy'
Rising population and climate change could translate into much higher water bills without action being taken now.

It marks a significant escalation of investor pressure on corporations to rein in greenhouse gas emissions, improve climate-related financial disclosures and increase governance on climate change.
More than 200 of the world's biggest investors, responsible for $26 trillion in assets, have signed up to the initiative. It includes Australian investment giants Australian Super, AMP Capital, VicSuper, First State Super, Hesta and Cbus.
Mining company Rio Tinto is named by the campaign as among the world's top 100 polluting companies. Photo: Bloomberg
Shareholder action on climate change has been gathering pace, given new momentum by the Paris climate accord. A strong response from the international corporate sector is needed if the goal of limiting the global rise in average temperatures to no more than two degrees is to be met.
Emma Herd, chief executive of the Investor Group on Climate Change in Australia, said two years had passed since the Paris climate deal was signed and investors now wanted "action that's faster and goes further than what we've seen before".
Ms Herd cited Exxon Mobil, the world's biggest oil company, which was this year forced by a shareholder vote to be more transparent about the impact of climate change on its business.
"Engagement between investors and the companies they own is one of the core foundations of our economy and how it runs," she said.
If a company does not respond to investor demands on climate change, shareholder options include resolutions and votes, and divestment.
Investors who sign up to the effort can nominate companies to be added to the list.
Companies in the sectors of oil and gas, electricity and transport make up the bulk of the 100 companies. It also includes PepsiCo and Nestle, as well as the Wesfarmers group which includes Coles, Bunnings, Kmart, Target and Officeworks, as well as coal mine assets.
A spokesperson for Wesfarmers said: "Wesfarmers regularly engages with investors on this issue and will continue to do so. As a group, we strive to reduce the emissions intensity of our businesses and improve their resilience to climate change."
The methodology used to compile the list included direct and indirect emissions, as well as emissions from transport and product consumption.
Anne Simpson, investment director of sustainability at CalPERS, the largest public pension system in the United States, said there was "nowhere to hide from climate risk".
"Ultimately shareholders are the owners of these companies and ... if we don't make sure these companies make the transformation to a low carbon economy we are exposed to the risks of their emissions, not just directly through the investments we've got in those companies but also by the indirect impact on all the other assets in our portfolio," she said.
BHP Billiton declined to comment. Its latest annual report said it had a "strong record of supporting and complying with robust reporting requirements on climate change issues".
Rio Tinto had not responded at the time of publication. The company's website says it is "taking action to improve productivity and reduce emissions. Our challenge is to meet the world's growing needs for the metals and minerals we produce, while addressing the issue of climate change."

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Emmanuel Macron Says The World Is Losing The Fight Against Climate Change: 'We're Not Moving Quick Enough'

The Independent - Mythili Sampathkumar

Donald Trump not invited to Paris summit where tag line of event was 'Make Our Planet Great Again'
The French President heading the Paris-based summit. Philippe Wojazer, Pool via AP
Emmanuel Macron has said that the world is “losing the battle” against climate change and issued a plea to the leaders of wealthy countries: “We’re not moving quick enough. We all need to act.”
Mr Macron was speaking at the One Planet summit in Paris, a meeting of 50 countries to which the US President was not invited.
But in a light-hearted nod to Donald Trump, who has called climate change a “hoax”, the tag line for the summit was “Make Our Planet Great Again”.
Mr Macron said the US was not willing to “join the club” on combating climate change, he told Time.  As part of the summit, 18 mostly US-based scientists will win paid opportunities to live and conduct climate-related research in Europe, away from the climate scepticism of Mr Trump.
Other attendees to the summit included Mexican President Enrique Pena Nieto, Theresa May and the secretary-general of the United Nations, Antonio Guterres.
France announced a raft of 12 non-binding commitments, from a $300m pledge to fight desertification to accelerating the transition towards a decarbonised economy. But there was no headline promise likely to reassure poor nations on the sharp end of climate change that they will be better able to cope.
Developed countries have pledged to provide $100bn (£75bn) a year to poorer countries, every year after 2020 – when the Paris Agreement, a global accord to curb greenhouse gas emissions and limit global warming to 2C, comes into force.
The funds were supposed to go towards adapting poorer countries’ infrastructures and economies to be more climate resilient, particularly in the event of a natural disaster. But specific details about financial pledges did not make it into the main text of the Paris Agreement in 2015, as governments called for flexibility.


Barack Obama jokes ‘Thanks, Obama’ when talking about climate change progress

Now, there are fears that countries are not getting even close to that figure for the first year. The Organisation for Economic Cooperation and Development (OECD) estimates only about $68bn (£51bn) has been collected.
Also in focus is how public and private financial institutions can mobilise more money and how investors can pressure corporate giants to shift towards more ecologically friendly strategies.
More than 200 institutional investors with $26 trillion in assets under management said they would step up pressure on the world’s biggest corporate greenhouse gas emitters.
Part of the reason to keep up momentum on fighting climate change is the vacancy in action and financing left by the US government under Mr Trump.

Hanna Petursdottir examines a cave inside the Svinafellsjokull glacier in Iceland, which she said had been growing rapidly. Since 2000, the size of glaciers on Iceland has reduced by 12 per cent. Tom Schifanella

The US withdrew a $2bn pledge to the Green Climate Fund, one of the myriad pots set up for developing countries to receive aid money.
In June, Mr Trump ordered the start of the official withdrawal of the US from the Paris Agreement, after former President Barack Obama was obliged to use an executive order to join the deal in 2016 to bypass climate deniers in Congress.
The US remains the only country not in the Paris Agreement after previous holdouts Nicaragua and Syria joined the rest of the world.
And the US actively promoted the use of fossil fuels at a UN climate change meeting last month.
Industry representatives from coal, oil, gas and nuclear power companies like Peabody Energy, nuclear engineering firm NuScale Power, and Tellurian, a liquefied natural gas exporter, were prominently featured during the event.
During the panel, Mr Trump’s international energy issues adviser George D Banks said it was “controversial only if we chose to bury our heads in the sand”.
“Without question, fossil fuels will continue to be used, and we would argue that it’s in the global interest to make sure when fossil fuels are used that they be as clean and efficient as possible,” Mr Banks said.
However, the US private sector and state governments – like Governor Jerry Brown representing California – have not been left out of the One Planet summit. 
Over a thousand governors, mayors, and CEOs in the US have pledged to keep up the commitments outlined in the Paris Agreement despite the federal government’s inaction.

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12/12/2017

Qld Premier Annastacia Palaszczuk Seeks To Veto Adani Loan

The Australian - 

Adani protesters may have just got what their hearts desired. Picture: AAP
Re-elected Queensland Labor Premier Annastacia Palaszczuk has written to Prime Minister Malcolm Turnbull to veto a federal loan to the Adani coal project in Queensland’s Galilee Basin.
In one of her first acts after she was officially sworn in this morning, Ms Palaszczuk has followed through on the shock announcement she made during the election campaign to block a loan from the Northern Australia Infrastructure Facility to the Indian conglomerate to build a common-user rail line in the basin.
“My government provides formal notification for the Commonwealth that financial assistance should not be provided to Adani for the North Galilee Basin Rail Project,” Ms Palaszczuk’s letter to Mr Turnbull reads.
“As such, the government is exercising its veto right under section 13(4) of the Investment Facility Mandate in response to the Adani loan application.”
An Adani spokesman said the company was still committed to Queensland despite the veto, and insisted the Queensland government was still supportive of its Carmichael coal mine proposal for the Galilee Basin.
“We congratulate Premier Palaszczuk on her government’s election and look forward to working closely and cooperatively with the state and federal governments and regulatory authorities as we get on with the job of making all of our projects a reality,” the spokesman said.
“Adani Australia currently employs over 800 people and has invested over $3.3 billion in Queensland, which is one of the biggest investments by an Indian company in Australia.
“We would not be investing our time, money and energy in this manner if our projects were not viable and if we were not serious about delivering our projects which will ultimately generate more than 10,000 direct & indirect jobs across all of our projects.
“The projects are viewed in a positive light by the Queensland Government and considered as critical infrastructure investments. The projects continue to retain the support of the Queensland Government.
“Adani Australia will now fully consider and adjust to the constraints the veto of NAIF funding brings. Adani Australia is 100 per cent committed to Queensland, we have a strong regional Queensland presence. This will not change.
In response to Ms Palaszczuk’s letter to Mr Turnbull, Northern Australia Minister Matt Canavan said the Queensland government had “chosen to stand in the way of North Queensland jobs as its first official act”.
“It was the Palaszczuk Government that first asked last year that the NAIF consider a loan to the Adani Galilee rail project in a letter from the now-sidelined former Treasurer Curtis Pitt,” Senator Canavan said.
“But what the Queensland Premier has failed to say today is whether she intends to block all investment in the Galilee Basin.
“The people of regional Queensland deserve to know which jobs will be next on Labor’s hit list.
“I hope the Adani project proceeds because there are 800 people whose current jobs depend on it, and thousands of future jobs hang in the balance. If Adani does proceed it will be in spite of Queensland Labor not because of it.”
Under the constitution, the federal government funding must be facilitated by the state government to the private company.
Ms Palaszczuk said newly appointed Treasurer Jackie Trad, the state’s Deputy Premier, would write to federal Northern Australia Minister Matt Canavan to provide the same advice.
Earlier today, Senator Canavan wrote to Ms Palaszczuk about the Adani veto.
“I note an investment decision has not yet been made on Adani’s NGBR proposal but is unlikely to progress any further in the NAIF’s assessment given your announced position (during the campaign),” Senator Canavan said.
“This project is crucial to opening up the Galilee Basin and would mean economic growth, and jobs for many Queenslanders. I would appreciate if you could confirm by written notice that your government will veto the provision of the NAIF finance to this important project. Further, I would appreciate your urgent advice on whether your government intends to veto any investment proposals to the NAIF that seek to service the Galilee Basin, or more broadly in Queensland.”
During the campaign, the Integrity Commissioner wrote to Ms Palaszczuk and said she should not make any decisions about any NAIF applications, because of a conflict of interest created by Ms Palaszczuk’s partner working on Adani’s NAIF application.
However, she flouted this advice and said she would veto the loan. Ms Palaszczuk has not said what she would do for other NAIF projects, such as Aurizon’s application to build a rail line in the Galilee Basin.

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'Bastard Child': Review Of Controversial Emissions Fund Finds 'Significant Risk'

Fairfax - Peter Hannam

Some of the carbon offsets operating under a controversial $2.5 billion fund set up by the Abbott-Turnbull government are at "significant risk" from bushfires, according to a review by the Climate Change Authority.
The audit of the Emissions Reduction Fund, released by the authority on Monday, released by the authority on Monday, found that evidence of systemic problems had yet to emerge, but that there were questions over whether some of the carbon stored under the scheme would have been stored anyway.


World carbon emissions on the rise
A new report has shown world carbon emissions set to reach a record high this year, with a 2 percent rise according to scientists.

The report noted the fund had so far paid out $2.23 billion for 189 million tonnes of emissions reductions, or about $11.80 per tonne. Some 26 million tonnes had already been delivered.
"Overall, this review has found that the ERF is generally performing well," the report said. "It has successfully incentivised new domestic abatement at low cost that will help contribute to Australia meeting its international target commitments."
However, critics such as Clive Hamilton – an academic at Charles Sturt University who resigned from the authority's board in February –dismissed the review as giving "a veneer of legitimacy to a discredited scheme".
"The federal government has stopped talking about the ERF," he said. "It's like bastard child whose existence no one wants to acknowledge."
Tim Baxter, a researcher at Melbourne University's Australian-German Climate and Energy College, described the report as "a light touch" that failed to address the many systemic problems with the fund.
"Pretty much in every methodology you look at there's some fundamental accountability issue," Mr Baxter said. "This is almost big enough that 30, 40, 50 per cent of the abatement you're claiming under this methodology doesn't exist."
Australia's emissions problems aren't going away. Photo: AAP
The report's release comes ahead of a review of the government's overall climate policies is scheduled to be released before the end of the year.
Josh Frydenberg, Minister for the Environment and Energy, welcomed the report's view that the ERF was "performing well".
Bushfires pose a threat to the carbon sequestered under the $2.2 billion spent so far under the Emissions Reduction Fund. Photo: Craig Abraham
"The government will carefully consider the review's recommendations and table its response in due course," he said.

Forest issues
Among the issues the report did highlight was the fact 139 million tonnes of the abatement paid for was in vegetation and soil, and at "significant risk" of reversal.
"[T]he Authority recommends that scheme participants submit plans to the Clean Energy Regulator (CER) outlining how they will maintain carbon in their projects and deal with the risk of fire," it said.
Of the vegetation projects, 75 per cent were located in the Cobar Peneplain and Mulga Lands of south-west Queensland and western NSW.
The current buffer of 5 per cent "may need to be reviewed to take into account increasing risk of natural disturbances, particularly if sequestration projects are geographically concentrated", it said, adding any changes should not affect existing projects to avoid creating investment uncertainty.
Mr Baxter also questioned the discounting by only 25 per cent projects that were earmarked to run for 25 years compared with those meant to store carbon for a century.
The discount rate seemed more to do government borrowing costs rather than natural processes.
"A 25-year permanence period is very, very different - and a lot more than a 20-25 per cent difference - to a 100-year permanence period in terms of emissions," Mr Baxter said.
"The odds of a government stepping in and purchasing that future abatement…if one project fails through from fire or drought …seem pretty slim."

Landfill issues
Similarly, he queried the report's findings that landfill projects had met the "additionality" conditions even when ample evidence existed –such as reported by Fairfax Media – that many such ventures would have happened without the ERF.
Almost all landfill operators had joined the bidding for funds even though they got money from the Renewable Energy Target, didn't have to comply with the newness requirement, and "a decent percentage are required by law in their home state" to deal with emissions, Mr Baxter said.
"You've got things like that which are really, really problematic," he said.
Another issue raised in the report was the market concentration. Just two firms – GreenCollar and Corporate Carbon – control 55 per cent of the abatement supplied by Carbon Service Providers.
The authority did not recommended any specific steps to address the domination of a few companies.
It did, however, call for the government to seek to amend the Carbon Credits Act 2011 so that agents be required to pass a fit and proper test to address concerns such as those raised by the National Farmers' Federation about CSPs "behaving unscrupulously".
By international standards, the ERF was "reasonably good" and had problems that could be fixed if governments were serious, Mr Baxter said.
"There are loopholes there you can drive a truck through but they can be closed over time," he said.

Political view
Adam Bandt, the Greens climate change spokesman, though, said the previous Labor/Greens program had resulted in "real emissions cuts with polluters paying the public $24 a tonne".
"Under the Liberals, pollution is rising and taxpayers are paying $12 per tonne for forest schemes that might go up in smoke," Mr Bandt said. "Real climate policy shouldn't be reversible.
"We can plant all the trees in the world but until we cut pollution from coal and petrol, we won't stop climate change and the bushfires it will bring," he said.

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