Deutsche bank rebuffs Adani’s funding request

The Deutsche Bank of Germany announced it will not lend money to the Indian mining firm Adani Group to finance the development of Abbot Point Terminal I. The decision came after an AGM held on Thrusday.

We stress that we take the future of the Great Barrier Reef very seriously. We observe that there is no consensus between UNESCO and the Australian government regarding the expansion of Abbot Point. Since our guidance requires such a consensus as a minimum, we would not consider a financing request. – Deutsche Bank Group

Deutsche Bank Group convenes AGM 2014 (Photo: Deutsche Bank Group FB)

Adani is one of the last remaining investors standing for the port terminal, along with another Indian firm, GVK Group.

Other investors have long abandoned their stakes, including mining giants Rio Tinto, BHP Billiton, Lend Lease and Anglo American. Market and financial analysts said the multi-billion dollar investment is unfeasible due to the end of the mining boom, with the downward spiraling of coal market prices worldwide. Galilee Basin in northern Queensland, where coal will be extracted,is also extremely remote and without basic infrastructure.

Tony Brown, tour operator for the Whitsundays, speaks at the bank’s AGM 2014 (Photo: Market Forces)

Australian mining goddess Gina Rinehart, herself, sold most of her coal assets in 2011. GVK bought them.

But despite Indian interests, the project has been stalled for two years. Adani is required to complete all environmental approvals and then raise AU $8 billion of additional debt and equity financing, and hence allow construction to commence on the Carmichael coal, rail and port proposal. Read the scale and magnitude of funding HERE.

There are speculations that the two companies tried to sell their equity holdings. GVK allegedly offered Coal India Ltd, but was rebuffed due to its uncommercial value. Adani is also rumoured to have approached several Chinese firms, including China Railway Corp.

Early this month, the Institute for Energy Economics and Financial Analysis (IEEFA) warned investors it is too risky to invest in the project. Local banks which were appointed to finance the project include National Australia Bank, Commonwealth Bank, and Westpac Banking Corp- on top of a few other international banks.

Tim Buckley , director of Energy Finance Studies, Australasia for the Institute for Energy Economics and Financial Analysis said that India cannot afford the price of imported coal:

India’s perilous economic and financial situation creates further uncertainty for companies relying on its ability and willingness to import coal, with its associated implications for inflation, current account deficits, economic instability and energy security’.

He also said that “imported coal would require double the current price of India’s wholesale electricity, which categorically discredits the nonsense argument that it might alleviate India’s energy poverty.” Buckley has produced detailed reports on Adani and GVK.

Whitsundays tour operator Tony Brown joins the rally in Germany (Photo: Market Forces)

Various environmental and civic groups have written the Deutsche Bank not to lend Adani.  Australian-base civic groups also linked with their European counterparts to “pressure” the bank. Some travel operators in Queensland further travelled to Germany to join the rally.

At the end of the AGM on Thrusday, the bank released the Deutsche Bank’s Environmental and Social Reputational Risk Framework (ES Framework), which stipulates the bank’s  environmental and social due diligence as an integral part of the approval process for doing business.

One of the specific guidelines recently adopted addresses activities in the close proximity to World Heritage Sites. It precludes transactions within or in close proximity to World Heritage Site unless there is a prior consensus between the relevant Government and UNESCO that such operations will not adversely affect the Outstanding Universal Value of the Site. This implies that we would not consider a request to finance an expansion unless we had the assurance of both the government and UNESCO that it would not adversely affect the Value of the Site.

Read: Deutsch Bank official stand and UNESCO’s State of Conservation

Blog Link: The Green Journal/ Asian Correspondent

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US economist launches low carbon mission in Australia

While the global community is stepping up plans and actions to respond to climate change, Australia is responding otherwise. Under the current political leadership, Australia’s attitude towards global cooperation has been recalcitrant.

The Tony Abbott’s budget cuts on environment , along with the anti-climate change initiatives, remain a controversial issue triggering non-stop protests and rallies nationwide. But in the midst of chaos, the budget welcomes the re-known economist and professor, Jeffrey Sachs, who arrived in Australia  to launch a clean energy initiative.

Professor Jeffrey Sachs leads the launching of low carbon project in Melbourne (Photo: Rowena Dela Rosa Yoon)

“This is not a great budget, but a great debate,” Professor Sachs quipped.

Noting the crucial role of Australia in preventing a tipping point of the planet, Sachs led the launching of ‘How Australia can Thrive in a Carbon World, Pathways to Prosperity in 2050’ in Melbourne on May 21. The launch was sponsored by Monash Sustainability Institute and The Myer Foundation.

Obviously disappointed and not amused with the budget, Sachs said Australia has a critical role in leading the world towards a low carbon and yet still a prosperous global economy. For one thing, Australia’s per capita emissions are amongst the highest in the world driven by agriculture, industry and coal-based electricity.

He said decarbonisation has been underway,  including Australia’s trading partners with a goal of economic prosperity – yet with improved air quality, energy security and improved standards of living. The project underlies a tough challenge for Australia’s competitiveness driven by emissions from the country’s key exports, including coal, gas, oil and beef. The Monash University team, however, underscores that Australian economy is resilient and diverse, besides the largest industry which occupies 52 percent of the  GDP is the service sector. The carbon emissions sector such as mining, manufacturing, agriculture and forestry share lesser portion to the GDP.

The mission of the project is to map up viable pathways to reduce dangerous carbon emissions. Pathways may include increasing energy efficiency, shift to low carbon resources, and non-energy abatement and sequestration. Sachs said there has been a lot of talks going on and what the global community needs to see is a showcase of a pathway that is viable and achievable. The working paper outlines:

This means that each country will gain insights such as what China is predicting in terms of renewable energy growth, what Europe and the US are assuming with regards to take up of energy efficiency, and what India’s demand for coal may be.

Decarbonization is coordinated globally but driven locally with the participation of 13 countries which collectively represent more than 75 per cent of global greenhouse gas emissions. The project is being coordinated by the Sustainable Development Solutions Network (SDSN) – which is an international network of universities and research institutions. Countries participating include Australia, Brazil, Canada, China, Europe, India, Indonesia, Japan, Mexico, Russia, South Africa, South Korea and the United States. 

SDSN appointed ClimateWorks Australia and the Australian National University to jointly lead Australia’s involvement, with modelling by CSIRO and the Centre of Policy Studies at Victoria University. After the launch, the project expects each of the participating countries to prepare summaries of example pathways modelled and demonstration of the technological solutions for deep decarbonisation. The summaries will be included in a SDSN ‘Phase 1’ report to be released in July 2014. It will be presented to UN Secretary General Ban Ki Moon in preparation for the UN General Assembly meeting and Climate Change Summit in New York City this coming September. Australia’s story will be presented to a global audience.  

Q & A during the launch. Professor Jeff Sachs is seated second from the right. (Photo: Rowena Dela Rosa Yoon)

Q & A during the launch. Professor Jeff Sachs is seated second from the right. (Photo: Rowena Dela Rosa Yoon)

Professor Sachs is known for his work on poverty eradication, including his bestselling books – Common Wealth: Economics for a Crowded Planet and The End of Poverty. He is the director of the Earth Institute at Columbia University and a special adviser to UN Secretary-General Ban Ki-moon.

Abbott’s 2014 budget: Climate change not a priority

It is not a big surprise when the Coalition Government of Tony Abbott sliced a huge amount of budget for the environment.

Reacting to the budget, mining magnate Clive Palmer, who leads the Palmer United Party, said the 2014 budget is delivered for the lobbyists and donors of the Liberal Party. He, however, failed to realise that the mining sector, which he likewise represents, is a big budget benefeciary.

Clive Palmer with Jim Mclnally and Sisie Douglas announcing the United Australia Party in Brisbane, 26 April. (Photo: Mark Calleja/ goldcoast.com.au)

Palmer wrote in  The Guardian:

As the government prepared its first budget, the spin doctors were working overtime, preparing for the moment when Tony Abbott and Joe Hockey would throw away the promises and the policies they took to the election. At parliament house, lobbyists queued to see ministers and bombarded new members of parliament with detailed submissions…

The budget, which was delivered in Parliament last week, hits the Green sector hard – not to mention a range of other victims under Australia’s welfare system.

Australia’s climate change policy and investments in renewables are now facing uncertain future.

Investment in renewables has been scaled down to save about $1.3 billion. The government has also turned its back from its commitment to the Renewable Energy Target (RET) with funding of $2.55 billion now set to spread out over 10 years instead of four years as promised.

Solar panels on Port Augusta, VIC (Photo: Supplied)

 

The Australian Renewable Energy Agency (ARENA) is no longer needed and its function will be streamlined under the environment department. ARENA was set up in 2012 to drive research and investment in renewable technologies. With bipartisan support, it was set up as an independent agency to improve the competitiveness of renewable energy technologies and their uptake. Ivor Frischknecht, the agency’s chief executive ,said abolishing the agency will reduce Australia’s ability to lower cost energy in the long term.

The Renewable Energy Target (RET) scheme is designed to ensure that 20 per cent of Australia’s electricity comes from renewable sources by 2020. The RET scheme is helping to transform Australia’s electricity generation mix to cleaner and more diverse sources and supporting growth and employment in the renewables.

More bad news comes with AGL backflipping from its commitment to renewables. It announced over the weekend Australia’s RET is not achievable.

Leading utility AGL Energy has called for the scrapping of federal government support for rooftop solar PV, and has indicated the large scale renewable energy target (RET) should also be diluted or deferred because it would be impossible to meet the current 41,000GWh target in the current timeframe. – Giles Parkinson, Renew Economy

This will make Australia to slip further as an enemy of clean energy Already, the country ranks ninth  in renewable investments last year ahead of Italy, but behind the likes of South Africa, Canada, India and Germany.

 In contrast to renewables, the mining sector get a big  boost with $100 million allotted over four years for minerals exploration. Small explorers will not make any taxable income access to a refundable tax offset for their Australian shareholders.

Abbott has also spared mining an increase in  the diesel fuel excise. Currently, commercial vehicles used in mining and agriculture get a rebate on the diesel fuel excise that drops it to six cents per litre. Before the budget there had been calls to raise this in line with the petrol fuel excise.

 Extreme heatwaves hit Australia (Image: ABM)

 

The Minerals Resource Rent Tax, otherwise known as mining tax, which was introduced during the Government of Kevin Rudd and passed the Parliament under Julia Gillard has been tabled in Abbot’s agenda. The abolition of mining tax is projected to save $3.4 billion over the next three years. Read ABC’s summation of the budget.

With the G20 summit to be held in Brisbane this coming November, Abbott has already informed the EU he wants environment and climate change to be taken off  from the agenda- besides he already informed the IPCC and the rest of the world he does not believe in climate change. 

 

 

Jeffrey D. Sachs – Australia in the Age of Sustainable Development

Here’s an upcoming event in Melbourne

sachs

Jeffrey D. Sachs – Australia in the Age of Sustainable Development

SDSN Australia/Pacific – Monash Sustainability Institute and ACFID

Wednesday, 21 May 2014 from 6:00 PM to 7:30 PM (AEST)

Melbourne, VIC

As humanity pushes against planetary boundaries, how can we achieve economic growth that is both environmentally sustainable and socially inclusive? Join us to hear Jeffrey D. Sachs, world-renowned economist, leader in sustainable development and senior UN advisor discuss the new age of sustainable development and what it means for Australia.

Humanity has entered a new era of both risk and possibility. Extreme poverty is down by half since 1990, and the IT revolution allows new possibilities as never before. Yet social inequalities are soaring; the environment is under great and growing stress; and governance is so far unable or unwilling to adapt. Jeffrey Sachs will discuss the new age of sustainable development, and Australia’s role in achieving sustainable development both domestically and globally.

Professor Jeffrey D. Sachs serves as the Director of The Earth Institute, Quetelet Professor of Sustainable Development, and Professor of Health Policy and Management at Columbia University. He is Special Advisor to United Nations Secretary-General Ban Ki-moon on the Millennium Development Goals, and held the same position under former Secretary-General Kofi Annan. He is Director of the UN Sustainable Development Solutions Network, as well as co-founder and director of the Millennium Villages Project. Sachs is also one of the Secretary-General’s MDG Advocates, and a Commissioner of the ITU/UNESCO Broadband Commission for Development. He has authored three New York Times bestsellers in the past seven years: The End of Poverty, Common Wealth: Economics for a Crowded Planet, and The Price of Civilization.

Presented by the Monash Sustainability Institute as the Australia/Pacific Regional Centre of the UN Sustainable Development Solutions Network with the Australian Australian Council for International Development and proudly supported by the City of Melbourne.

Have questions about Jeffrey D. Sachs – Australia in the Age of Sustainable Development? Contact SDSN Australia/Pacific – Monash Sustainability Institute and ACFID

Abbott’s budget cuts hit the nation

Whatz-a-buzz this week?

abc

The environment is not only under attack from the Tony Abbott Government. The Federal Government also released the commission’s report, outlining 86 recommendations aimed at saving the budget tens of billions of dollars a year and achieving a surplus of 1 per cent by 2023-24.

Areas in the firing line include family payments, child care, health care, education, unemployment and pension payments, aged care and the National Disability Insurance Scheme (NDIS). Life is getting tougher for the most disadvantaged, the ABC reported

The attack on public broadcaster – the ABC itself – is also on the spotlight. So there you go, a threat to liberty on free speech, balanced reporting, and fearless views. Without ABC, most Australian news would only come from the profit-oriented Murdoch and Fairfax media.  So, here’s from GetUp! delivered to my mailbox:

Dear Rowena,

This budget, ABC funding is under attack. But we can be there to protect it.

On 7 May – in the critical week before Budget – GetUp members like Donald will be ramping up the campaign to protect our ABC by taking the fight straight to their Federal representatives. In more than sixty electorates, GetUp members have stepped up to organise exciting events to deliver the 240,000 person strong petition to Protect our ABC.

But to make these petition deliveries real show-stoppers, these GetUp members are counting on you to join them.

Can you join a team of local GetUp members and deliver the ABC petition to your MP?

What: Join local GetUp members to deliver the 240,000 signature strong ABC petition to your MP’s office
Date: Wednesday 7 May
Time: 9:00-9:30am
Location: Your local MP’s office (details provided on the RSVP page)
RSVP: Click here to join a team

Already, 240,000 passionate GetUp members have signed the online petition to Protect our ABC – and it’s shaping up to be the biggest and fastest growing petition in our movement’s history! That’s why, just a week out from budget, we need to take our campaign to the doorsteps of our decision makers and into the hands of Federal MPs – in cities and regional towns across Australia.

By presenting our petition on the same day, at the same time, right across Australia, we’ll create a media frenzy and prove, once and for all, that protecting the ABC is supported Australia-wide. These petition deliveries will send MPs across the political spectrum a message they can’t ignore and a mandate to defend our national treasure.

Attending your local ABC petition delivery is as easy as 1, 2, 3! All you have to do is sign up to your electorate’s delivery, note the address of your MP’s office, and be there bright and early to meet your fellow GetUp members on Wednesday 7 May.

RSVP to attend your local petition delivery team on 7 May.

With the future of our ABC at stake, it’s time to prove Australians are ready to fight for it.

See you there,
Jess, Sophie, Emma and Michael for the GetUp team

PS – Can’t make it next Wednesday 7 May but still want to get involved in the campaign? Tell us why you want to Protect our ABC by submitting a photo or message here: www.getup.org.au/abc-submit