2008 Korean Insurance Companies - finance for the Adani Carmichael coal project

 FW: Korean Insurance Companies

wcrpaust@iinet.net.au

Tue, Aug 11, 10:34 AM (1 day ago)

 to me

Dear Sejin

Is this a better letter to send to Korea Quakers and Religions for peace

If so I will send it in the next day or so

Best wishes

Sue

----

From: chair@arrcc.org.au <chair@arrcc.org.au>

Sent: Tuesday, 11 August 2020 10:24 AM

To: wcrpaust@iinet.net.au

Subject: FW: Korean Insurance Companies

Dear Sue

I’ve added some more information where you’ve requested it below, and incorporated your changes.

I’ve e-mailed MarketForces for helpful contacts in Korea and any info they might have in the Korean language.I’ll let you know when I hear back.

Warmest regards

Thea

------

Thank you for your kind offer of reaching out to Religions for Peace in Korea. I trust you will gauge their willingness to help, and I hope the background and links below will be useful for that.

Background

The Australian Religious Response to Climate Change (ARRCC, pronounced ark”) is a multi-faith organisation dedicated to galvanising diverse people of faith to respond to the climate crisis. We support changes that can be made at an individual and communal level, and we advocate for positive policy shifts in the corporate and government sectors.

ARRCC has been supporting resistance to Adani’s Carmichael Coal and Rail Project in central Queensland. At a time when humanity must urgently shift away from its dependency on coal, the Carmichael project and its associated coal port would produce enough coal over its lifetime to emit 4.6 billion tonnes of CO2 emissions, equivalent to over eight years of Australia’s national annual greenhouse gas emissions. Its rail line would also open up the greenfield Galilee Basin to further coal mines.

Adani’s project has already violated First Nations land rights; it threatens scarce water resources for farmers and the environment in a drought prone regions, risks a section of our already stressed Great Barrier Reef (known as one of the seven wonders of the world) with dredging for shipping and would, if fully developed, fuel runaway global warming. According to Bill McKibben, a Christian climate activists and co-founder of 350.org, by opening up a huge new coal basin, the Carmichael Project  could reasonably be described as a "carbon bomb". Our reasons for becoming involved are outlined in more detail on our webpage here: https://www.arrcc.org.au/join_arrcc_in_stopping_the_carmichael_coal_mine  

To see how our resistance is expressed in terms of our values and beliefs, see here: https://www.arrcc.org.au/catholic_theologians_religious_join_multi_faith_calls_on_adani

Most Australians do not support this disastrous coal mine, with thousands taking action time and time again to show that every company associated with Adani faces serious reputational risk. That’s why over 71 major companies have already ruled out working with Adani. ARRCC and others write to the CEO's, outreach to staff, encourage supporters to e-mail, post on social media, protest outside, protest inside. Our current campaign plans, along with useful links are here: https://www.arrcc.org.au/adani_contractors.

Connection with South Korea

The connection with your part of the world is that South Korean companies are known as lenders to Adani for their coal port at Abbot Point and/or they have not ruled out further loans to Adani. Just weeks ago Samsung ruled out further finance to Adani's Abbot Point Coal Port, and today (3 August) Hanwha Investment Securities has backed away from Adani's coal. See: https://www.marketforces.org.au/info/key-issues/abbot-point/

We are now asking the Industrial Bank of Korea (@SMART_IBK) and Korea Investments & Securities (@Korea.Investment.Securities) not to extend finance for Adani’s Abbot Point Port or any of Adani’s Carmichael infrastructure. I have created a basic template for yourselves in South Korea to edit as you wish: https://drive.google.com/file/d/1LfNDyiHOaWNc_Wcy6LmOUAVicHtuiiR3/view?usp=sharing  

I am happy to respond to questions anytime. My contact details are below.

With warmest blessings 

Thea Ormerod

President, Australian Religious Response to Climate Change

--

I acknowledge that I live on Biddegal land of the Darug nation. Always was, always will be Aboriginal Land.

“Now is not a time to continue looking the other way, indifferent to the signs that our planet is being plundered and violated by greed for profit.” Pope Francis, World Environment Day 2020

---

Subject: Ruling out further finance for the Adani Carmichael coal project including Abbot Point port 

Dear 

We are moved by our diverse faith traditions to write to you about the potential for your company to finance parts of Adani’s Carmichael Coal and Rail Project. Our organisation, ……………………. We are writing in support of the movement appealing to companies to rule out financing the Adani Abbot Point Terminal (AAPT) which is on the north-east coast of Australia, or any part of the project .

In the midst of a climate crisis, the project would produce enough coal over its lifetime to emit 4.6 billion tonnes of CO2 emissions, equivalent to over eight years of Australia’s national annual greenhouse gas emissions. Its rail line would also open up the greenfield Galilee Basin to further coal mines. 

As people of faith, we are concerned about the current and worsening impacts on those who are most vulnerable, today’s younger generations, people living in areas more subject to cyclones, heat-waves, sea-level rise and drought. We are concerned about the spiritual rights of the Indigenous people of the Galilee Basin, the Wangan and Jagalingou, who continue to fight to defend their homelands from this project. We are concerned about the harm Adani has inflicted on the indigenous people of Godda, India, where the company is building its coal-fired power plant. Finally, we are concerned that Adani has such a track record of not paying debts, environmental vandalism and corruption but still manages to have its way in the business world. 

All of us share in the moral responsibility to act, especially those of us who have positions of influence, whether the influence is economic or political. Your company has a responsibility to use it to do good for the benefit of the wider community and future generations. 

We have only one earth, one common home. The climate crisis threatens the future of life as we know it. Please let us know that your company will not consider financing any part of Adani’s disastrous new Carmichael project. 

Australians are opposed to the mine. A national opinion poll in January 2018 found 65% of respondents either opposed or strongly opposed the Carmichael mine. Any company associated with this climate-wrecking project faces massive reputational risks including being the target of the immense public opposition to Adani's Carmichael project. These are risks that are not worth taking.  

We urge you to publicly rule out any finance for Adani’s Carmichael coal project, including the Abbot Point Port, other associated infrastructure and project contractors.  

In total, 71 major companies in the banking, insurance, construction, haulage and engineering sectors have now ruled out support for Adani’s Carmichael Project.  

We hope to hear soon that your company is not involved and will not be involved in the future. We would welcome the opportunity to discuss this matter further with you.

From: wcrpaust@iinet.net.au <wcrpaust@iinet.net.au>

Sent: Monday, 10 August 2020 5:06 PM

To: chair@arrcc.org.au

Cc: 'Robert Dawlings' <robert@arrcc.org.au>; 'WCRP' <wcrpaust@iinet.net.au>; 'Adrian & Elizabeth Glamorgan & PO'' <elizabethandadrian@gmail.com>

Subject: Korean Insurance Companies

Dear Thea

I have nearly linked enough with Quakers in Aust and RfPA Des for approval for this letter to be send to SK

I asked Robert to help me but I think it is better the question goes to you

Our South Korean (SK) Australian Quaker wondered if you could put a few more sentences in on what Adani is etc  and the other parts as this would give more ccontext

Secondly he was wondering if you could send him some links to information on the topic via me

He has read Wikipedia and other stuff

He is a retired academic specialist in the Koreas and Japan

He said there is little if anything in the Korean language on the issue

He is a person who wants to know a lot before he makes his mind up to assist

I have suggested he might like to come on Friday to the Zoom party

My question (to Robert and is probably better coming directly to you)  is does Market Forces have any contacts in South Korea so we could link SK Quakers and RfP SK with them.

If not that is fine. I will send these letters to letters myself and we will wait to see if my fellow Q will get involved or not

Best Wishes

Sue Ennis

---------------

 ……………………………………..

This is from Thea

Dear Sue

Thank you for your kind offer of reaching out to Religions for Peace in Korea. I trust you will gauge their willingness to help, and I hope the background and links below will be useful for that.

Background

The Australian Religious Response to Climate Change (ARRCC, pronounced ark”) is a multi-faith organisation dedicated to galvanising diverse people of faith to respond to the climate crisis. We support changes that can be made at an individual and communal level, and we advocate for positive policy shifts in the corporate and government sectors.

 ARRCC has been supporting resistance to Adani's Carmichael Coal and Rail Project in central Queensland ( more one how big etc) Adani’s project has already violated First Nations (aboriginal added ) land rights; it threatens scarce water resources for farmers and the environment in a drought prone regions, risks our already stressed Great Barrier Reef (one of the seven natural wonders of the world??) with dredging for shipping and would, if fully developed, fuel runaway global warming. This toxic project could open up a huge new coal basin, a "carbon bomb" in Bill McKibben's terms out. Our reasons for becoming involved are outlined in more detail on our webpage here: https://www.arrcc.org.au/join_arrcc_in_stopping_the_carmichael_coal_mine  

To see how our resistance is expressed in terms of our values and beliefs, see here: https://www.arrcc.org.au/catholic_theologians_religious_join_multi_faith_calls_on_adani

Most Australians do not support this disastrous coal mine, with thousands taking action time and time again to show that every company associated with Adani faces serious reputational risk. That’s why over 71 major companies have already ruled out working with Adani. ARRCC and others write to the CEO's, outreach to staff, encourage supporters to e-mail, post on social media, protest outside, protest inside. Our current campaign plans, along with useful links are here: https://www.arrcc.org.au/adani_contractors.

Connection with South Korea

The connection with your part of the world is that South Korean companies are known as lenders to Adani for their coal port at Abbot Point and/or they have not ruled out further loans to Adani. Just weeks ago Samsung ruled out further finance to Adani's Abbot Point Coal Port, and today (3 August) Hanwha Investment Securities has backed away from Adani's coal. See: https://www.marketforces.org.au/info/key-issues/abbot-point/

 

We are now asking the Industrial Bank of Korea (@SMART_IBK) and Korea Investments & Securities (@Korea.Investment.Securities) not to extend finance for Adani’s Abbot Point Port or any of Adani’s Carmichael infrastructure. I have created a basic template for yourselves in South Korea to edit as you wish: https://drive.google.com/file/d/1LfNDyiHOaWNc_Wcy6LmOUAVicHtuiiR3/view?usp=sharing  

 

I am happy to respond to questions anytime. My contact details are below.

 

With warmest blessings 

 

Thea Ormerod

President, Australian Religious Response to Climate Change

264 Pitt St

Sydney. NSW. 2000.

Ph: 02 9150 9713

M: 0405 293 466

E: chair@arrcc.org.au

W: www.arrcc.org.au

I acknowledge that I live on Biddegal land of the Darug nation. Always was, always will be Aboriginal Land.

“Now is not a time to continue looking the other way, indifferent to the signs that our planet is being plundered and violated by greed for profit.” Pope Francis, World Environment Day 2020

 

 Subject: Ruling out further finance for the Adani Carmichael coal project including Abbot Point port 

Dear 

We are moved by our diverse faith traditions to write to you about the potential for your company to finance parts of Adani’s Carmichael Coal and Rail Project. Our organisation, ……………………. We are writing in support of the movement appealing to companies to rule out financing the Adani Abbot Point Terminal (AAPT) or any part of the project ( Added) which is in the north east of Australia

In the midst of a climate crisis, the project would produce enough coal over its lifetime to emit 4.6 billion tonnes of CO2 emissions, equivalent to over eight years of Australia’s national annual greenhouse gas emissions. Its rail line would also open up the greenfield Galilee Basin to further coal mines. 

As people of faith, we are concerned about the current and worsening impacts on those who are most vulnerable, today’s younger generations, people living in areas more subject to cyclones, heat-waves, sea-level rise and drought. We are concerned about the spiritual rights of the Indigenous people of the Galilee Basin, the Wangan and Jagalingou, who continue to fight to defend their homelands from this project. We are concerned about the harm Adani has inflicted on the indigenous people of Godda, India, where the company is building its coal-fired power plant. Finally, we are concerned that Adani has such a track record of not paying debts, environmental vandalism and corruption but still manages to have its way in the business world. 

All of us share in the moral responsibility to act, especially those of us who have positions of influence, whether the influence is economic or political. Your company has a responsibility to use it to do good for the benefit of the wider community and future generations. 

We have only one earth, one common home. The climate crisis threatens the future of life as we know it. Please let us know that your company will not consider financing any part of Adani’s disastrous new Carmichael project. 

Australians are opposed to the mine. A national opinion poll in January 2018 found 65% of respondents either opposed or strongly opposed the Carmichael mine. Any company associated with this climate-wrecking project faces massive reputational risks including being the target of the immense public opposition to Adani's Carmichael project. These are risks that are not worth taking.  

We urge you to publicly rule out any finance for the Adani added Carmichael coal project, including the Abbot Point Port, other associated infrastructure and project contractors.  

In total, 71 major companies in the banking, insurance, construction, haulage and engineering sectors have now ruled out support for Adani’s Carmichael Project.  

We hope to hear soon that your company is not involved and will not be involved in the future. We would welcome the opportunity to discuss this matter further with you.

--------------

2006 Sunday environmental round up, 21 June 2020 - Pearls and IrritationsPearls and Irritations

Sunday environmental round up, 21 June 2020 - Pearls and IrritationsPearls and Irritations




Sunday environmental round up, 21 June 2020
By PETER SAINSBURY | On 21 June 2020


Three graphs to stimulate the little grey cells: Norway’s domestic and exported greenhouse gas emissions, global electric car sales and changes in CO2 emissions during COVID. Plus, India plans to become a global renewable energy powerhouse (with Gautam Adani’s support) and plastics fly to the wilderness.



India’s Prime Minister Modi has a vision: OSOWOG – ‘One Sun One World One Grid’, a single, globally connected grid distributing low cost, renewable energy. There are many international electricity connections, including undersea cables, already in existence or planned in Europe and Asia. Modi’s global plans are much grander and include big advantages for India: converting them from a fossil fuel energy importer (costing US$250 billion annually) to a renewable energy exporter; and from a domestic energy system that is expensive, damages health, guzzles water, pollutes the air, and produces lots of CO2 to one that is cheap and getting cheaper, healthy, clean, sustainable and generates income. As the fossil fools repeat endlessly, a problem for renewables is maintaining supply when the sun doesn’t blow and the wind doesn’t shine. But there are several behavioural and technical solutions: renewable sources other than wind and solar (hydro is by far the commonest at present), storage (batteries, hydro and hydrogen); demand response management (shifting and controlling the peaks); and a global grid that takes advantage of the fact that the sun and wind are always available to produce power somewhere (time-shift production). Modi can see the potential of all these technologies to transform India’s energy system and economy. Even Gautam Adani can see the future lies in renewables – if he’s genuine, you can’t help wondering how long it’s going to be before he pulls the plug on the Galilee Basin.

Looking backwards rather than forwards, the Norwegian Petroleum Directorate has produced a scare-piece outlining the catastrophes that would befall Norway in particular but all of us really if we stopped burning oil literally tomorrow: no road freight to deliver all our consumer goods, no more air or sea travel or trade, collapse of commercial farming and fishing, shortage of medicines, no more plastics (which are in just about everything, not just bags and straws), electricity shortages in some places, and so it goes on. But I don’t hear anyone suggesting that we can stop burning oil (or gas or coal) tomorrow. Fossil fuels are deeply embedded in everyday life and the world’s economy at present – it’s stupid to suggest otherwise – but that doesn’t mean a rapid transition away from them is not only necessary but also eminently possible. Not according to Eirik Waerness, chief economist at oil giant Equinor, however, ‘… Norway and Equinor will continue to be involved with oil and gas for many decades to come even if we move towards the climate goals’. If you are feeling very mentally strong today, you might take a glance at the whole booklet that this hyperbole appears in – warning though, it is very dispiriting reading.

To provide a little context for the previous paragraph, CO2 emissions produced by burning Norway’s massive oil and gas exports are about ten times greater than Norway’s domestic CO2 emissions. This article also briefly discusses responsibility for action and different ethical frameworks used to justify economic decisions.



They are absolutely everywhere on earth. Every year more than 1,000 tons of microplastics fall from the sky onto isolated national parks and wilderness areas in the south and central western USA. 98% of the samples taken from 11 parks and wilderness areas contained plastic. There seems to be two modes of deposition. During rain and snow, larger plastic particles from relatively nearby urban centres and farmland falls to the ground. In dry weather, smaller particles from further afield, some travelling globally, are deposited on the land. Most of the particles are derived from synthetic fibres used for making clothes and other products such as carpets and outdoor gear. The problem, of course, is that the plastics don’t degrade; they just keep accumulating. The small size of the particles may also accumulate in lungs and be a health hazard.

Car sales fell by about a third globally during the first four months of 2020. April was the nadir: sales in the USA halved, Germany dropped 60%, France 90% and UK, Italy and India had almost no sales. Sales are expected to pick up quickly as (if) COVID numbers continue to fall. Electric car sales didn’t escape the collapse except in some European countries where electric sales were up 90% compared with the same period last year. Globally, electric car sales have been increasing rapidly since 2010. In 2019 2.6% of total car sales were electric (half the sales were in China) and about 1% of the total car stock is now electric. (This sounds like the kids asking ‘Are we there yet?’ as you reverse out of the driveway.)

Global Electric Car Sales 2010-2020



Greenhouse gas emissions also fell as COVID’s star rose, reaching a daily 17% decrease in early April. Road transport and shipping were the hardest hit sectors, accounting for about 40% of the reduction. As was expected though, emissions are rapidly returning to normal as countries return to business as usual and they are now only 5% down. Before the recent outbreak in Beijing, China’s emissions were just about back to pre-COVID levels.


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Peter Sainsbury



Peter Sainsbury is a retired public health worker with a long interest in social policy, particularly social justice, and now focusing on climate change and environmental sustainability. He is extremely pessimistic about the world avoiding catastrophic global warming.



This entry was posted in Environment and climate, Politics. Bookmark the permalink.

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2006 T BUCKLEY & P GUPTA. Energy is pivotal to India’s eco devlopmnt and sustainability goals. Part 2 of 2. - Pearls and IrritationsPearls and Irritations

TIM BUCKLEY & PRAVEEN GUPTA. Energy is pivotal to India’s economic development and sustainability goals. Part 2 of 2. - Pearls and IrritationsPearls and Irritations

TIM BUCKLEY & PRAVEEN GUPTA. Energy is pivotal to India’s economic development and sustainability goals. Part 2 of 2.

By P&I GUEST WRITERS | On 5 June 2020

In Part 1, Tim Buckley and Praveen Gupta discussed the influences on India’s economic growth, energy security and environmental sustainability. In Part 2 they explore the Indian government’s energy strategies and possible ways forward.

Praveen Gupta: Any thoughts on incentives and disincentives for India’s energy transition?

Tim Buckley: Let’s look at the facts. India is the world’s second largest producer and consumer of coal, behind only China (having overtaken the U.S. in the last year or so). Government owned Coal India Ltd contributes around 80% of the country’s total coal production.

While many environmentalists tend to consider only the adverse impacts of Coal India Ltd, I’d balance that by saying the company is playing a key role in India’s current economic development.

Coal India Ltd is a massive employer with almost 280,000 direct employees, most of who are in the least developed parts of the country. Indian Railways gets more than half of its revenue from transporting coal and this is used as a cross-subsidy to reduce the cost of passenger rail transport. Finally, Coal India Ltd is most probably the highest taxed coal company in the world. Some 40% of Coal India Ltd’s total revenues are returned to government in the form of GST, duties, royalties, corporate tax and the Rs400/t coal cess. (Most of the coal companies I examine in Australia are either tax-haven based and/or structured to ensure they pay next to no corporate tax. On top of this, Australia’s coal industry is adept at extracting subsidies.)

India requires a financially strong government, and despite the destructive downsides in using fossil fuels, at least Coal India Ltd is contributing to state and centre coffers.

With coal paying its way to a large degree, the key opportunity now for India’s energy system transformation is renewables, which are the least cost source of new power generation and the lowest cost in terms of externalities.

With this in mind, the government is correctly focusing on accelerating renewable energy deployments to deliver on its target of 450 gigawatts (GW) by 2030. Achieving this ambition would rightly put India on the centre stage globally.

The Paris Agreement identified the “common but differentiated” emission reduction requirements of developed and developing nations. India is on track to deliver more than its share of this globally important goal, even as richer countries like the U.S. renege on their treaty obligations.

PG: In a most optimistic scenario, how long do you think it would take India to accomplish the Paris Agreement target?

TB: In the area of energy, India made three key commitments under its nationally determined contributions – the (intended) reductions in greenhouse gas emissions under the United Nations Framework Convention on Climate Change (UNFCCC). Firstly, to drive energy efficiency by decoupling energy needs from economic growth; secondly, to aggressively invest in renewable energy; and thirdly, through reforestation.

Under Prime Minister Narendra Modi’s leadership, India could well be five years ahead of its 2030 Paris commitments. As a result, this is driving energy system deflation and improving India’s energy security.

The technology driven disruption of the world’s energy system has huge economic, political, and environmental prospects for India, and the country is responding well to these opportunities.

PG: What in your vision would be an ideal energy mix for India?

TB: Prime Minister Modi has outlined a clear and ambitious vision: 450GW of renewables by 2030. The whole-of-industry and regulatory buy-in to this goal is really impressive.

However, achieving this vision requires a fourfold increase in annual investment, with a clearly overdue immediate step-up in the deployment of distributed renewable energy (particularly rooftop solar). Further, all coal-fired power plants should either be put on a formal closure path over the next 5-10 years or immediately retrofitted to reduce their environmental impact (the centre government has mandated this but enforcement is entirely lacking to date).

India has huge hydro-electricity resources, yet water is growing scarcer. This is a key constraint to sustainable economic growth. It would be in India’s interest to incorporate a plan looking at the viability of a limited expansion of hydro-electricity capacity as part of a wider flood management and whole-of-system clean water plan (bounded by the constraints of the loss of too much fertile rural land). The country should also immediately embark on a retrofit and modernisation of India’s existing 46GW of hydro capacity, given its key value for peaking electricity generation (pumped hydro storage (PHS)).

This would require an accelerated modernisation and expansion of India’s national grid infrastructure, including firming capacity (batteries, PHS, coal- and gas-peakers and demand response management).

India should also leverage its surplus electricity capacity via a tenfold increase in two-way renewable energy electricity exports to adjacent countries like Bangladesh, Sri Lanka, Nepal and Bhutan.

Along with this, India should leverage the technology convergence of the transport and energy sectors to accelerate deployment of electric vehicles (starting with buses, taxis and 2- & 3-wheelers) and continue with the electrification of Indian Railways.

This progress should be combined with a stepped-up focus on the many “Make in India” manufacturing opportunities that come with transforming and modernising the combined energy and transport needs of 1.35 billion people. The scale of domestic market opportunities means global capital will flood in, thereby supporting the government’s sensible long-term investment plan.

In turn, the progressive replacement of fossil fuel imports by lower cost, clean, domestic energy alternatives would reduce currency devaluation risks and lower inflation, and hence interest rates, in India. This in turn would create a virtuous cycle, as lower interest rates are the key to lower renewable energy tariffs.

India should also enforce a more positive centre-state dialogue to invite buy-in and regulatory compliance nationally, including mandated and enforceable recycling or reuse systems of all end-of-life components, be it fly ash from coal-fired power plants, solar modules or lithium ion batteries.

Achieving a sustainable energy system means finding a path to ongoing economic viability of state electricity distribution companies. Cross-subsidies from industry must be progressively removed, and a national Direct Benefit Transfer (DBT) scheme put in place to support those most in need in the rural sector. This would replace the problematic system of trading ‘free’ electricity for votes, which is in turn preventing sustainable economic growth for India as a whole.

PG: Could the Covid-19 be a game changer for good?

TB: Yes. COVID-19 has reinforced a key lesson for many countries: real leadership means relying on the advice of experts, in this case medical experts. There is another crisis in which the experts have long been ignored – the scientific experts calling for emission reductions to reduce catastrophic global warming. Ignoring climate science and the need for sustainability in the mindless pursuit of short-term economic growth ignores the power of nature to give us system shocks of enormous economic and personal cost. The COVID-19 lesson is that we must work together for the common good and put the benefits of a safe and healthy environment ahead of the questionable merits of unsustainable economic growth.

PG: Imposition of duty on imported panels, does it make the economics of renewables unviable? Any thoughts on the local capabilities?

TB: This is an important question. The COVID-19 pandemic has highlighted the shortcomings of global supply chains and the risks associated with the loss of domestic manufacturing expertise.

The “Make in India” strategy provides India with an opportunity to expand its domestic manufacturing expertise, leveraging huge ongoing demand growth across a range of new low emissions industries of the future.

This opportunity was not realised with India’s temporary solar module import duty of 2018-2020. Due to poor implementation of this policy, and state-centre and centre-centre policy contradictions, no new manufacturing capacity has been established. After extremely positive renewables momentum evident in 2018, India installed just 8GW (US$7bn) of solar in 2019/20, including rooftop. This was just a third of what should have been possible absent massive regulatory uncertainty and confusion, much of which stemmed from the unexpected cost impost of the solar module import duty. Some $15-20 billion annually of new additional investment in zero pollution, zero emissions, low cost domestic power generation was lost. The 15-25% import duty undermined investor confidence and reduced the well-established value gap between solar and thermal power.

By comparison, the 2GW/6GW manufacturing-linked solar tender won by Adani Green and Azure Power in January 2020 should achieve the policy objectives in a win-win manner (the Rs2.92/kWh pricing is still 20% below the wholesale price of electricity in India, while the 25-year contract provides investor certainty), without negative installation issues and disruptions.

Policy conflicts need to be resolved before they are announced. The long-term opportunities for strong, sustainably-driven economic growth across India are too important to be undermined by short term contradictions and missteps.

India has the potential to be a clear world leader in embracing and benefiting from the current technology-driven, deflationary, energy system disruption. Post COVID-19, a central focus on sustainability and accepting the advice of scientific experts is more important than ever.

Tim Buckley is Director of Energy Finance Studies Asia Pacific at the Institute for Energy Economics and Financial Analysis (IEEFA). Praveen Gupta is a former CEO of the insurer QBE India.

This is a slightly edited version of an article originally published in The Diversity Blog.

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TIM BUCKLEY & PRAVEEN GUPTA. Energy is pivotal to India’s economic development and sustainability goals. Part 1 of 2.

In Part 1, Tim Buckley and Praveen Gupta explore the factors influencing India’s economic growth, energy and water security, natural resources, air pollution and environmental sustainability. Praveen Gupta: Why is energy pivotal for any country in ensuring sustainability? Tim Buckley: Energy is pivotal for economic activity. The more a country…

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2002 A MITCHELL: Ex-NSW Premier Barry O’Farrell quits for India - Pearls and IrritationsPearls and Irritations

ALEX MITCHELL: Ex-NSW Premier Barry O’Farrell quits for India - Pearls and IrritationsPearls and Irritations


ALEX MITCHELL: Ex-NSW Premier Barry O’Farrell quits for India
By ALEX MITCHELL | On 28 February 2020


When Barry O’Farrell became NSW Liberal Party leader in 2017 his mission was to turn the Liberals into “the natural party of government”.

This dream status had been achieved by Labor under Premier Neville Wran (1976-1986) and Barry O’Farrell desperately wanted the Liberals to claim the same honour. So why is he quitting now?

Prime Minister Scott Morrison left the announcement to late in the daywhen Canberra’s media was preoccupied with the floods and hail storms that followed the weeks of catastrophic bushfires and choking smoke.

The single page press release, largely ignored by the media, stated that Mr Barry O’Farrell had been appointed as Australia’s High Commissioner to India.

In the league table of diplomatic postings, New Delhi isn’t as impressive as Washington, London or Beijing. But with more than one billion people and central to the tug-of-war between the US and China, Mr O’Farrell’s appointment to India is overtly political and highly significant diplomatically and militarily.

His knowledge of India is formidable. In the past 20 years he has been a frequent visitor to India and formed a close working relationship with Narendra Modi who is now India’s Prime Minister and leader of the sectarian anti-Moslem Bharatiya Janata Party (BJP).

After US President Donald Trump’s official visit to India last weekend, BJP gangs attacked Moslems with clubs, knives and swords, killing hundreds and maiming many more. TV footage showed Modi’s police standing by while encouraging the street violence.

Born an “army brat” who lived on Australian army bases, Mr O’Farrell is closely in tune with US plans to step up its anti-China aggression – by imposing trade sanctions and encircling China with a military build-up of warplanes, warships and submarines.

Scott Morrison has previously adopted a policy of trading with “good” China but ignoring “bad” China and its human rights violations. Mr O’Farrell’s appointment is a clear indication that the Federal Coalition has decided to toe Washington’s line by dumping China as a trading partner and replacing it with coal-fired India.

In the coming days and weeks, Scott Morrison can be expected to wedge Labor’s Anthony Albanese by committing the Coalition to the Adani project in central Queensland and backing coal exports to India.

The diplomatic snub to Beijing could not be more pointed. Australia has downgraded its diplomatic posting to China and conflated its diplomatic presence in India. To Beijing’s old guard this represents a “loss of face” which will not go unanswered.

Morrison, a former NSW Liberal Party director (as was Barry O’Farrell), will exploit the contradiction in Mr Albanese’s current position: he supports renewable energy in inner-city Melbourne and Sydney but fossil fuel in Queensland to placate right-wing Liberals and Nationals in his joint party room.

By accepting the diplomatic post, Mr O’Farrell is following the advice once given by British Prime Minister Harold Macmillan: “At home, you always have to be a politician: when you’re abroad, you almost feel yourself a statesman.”

The former Premier is one of the great survivors of NSW politics, and senior Liberal colleagues are fond of telling the apocryphal story: “A nuclear holocaust turns Australia into a continent of rubble. The only survivors are cockroaches – and Barry O’Farrell.”

On the domestic front, Mr O’Farrell has provided spine, direction and policy for the Liberals since their triumphant election victory in March 2011.

Even after his abrupt resignation over the notorious gift of

a $3,000 bottle of Grange, Mr O’Farrell has served his two successors – Premiers Mike Baird and Gladys Berejiklian – with his forceful brand of experience.

By diving overboard from HMAS Gladys when it is listing and taking water, Mr O’Farrell is sending a political signal that his time is up … and maybe Premier Berejiklian’s as well.

Without Mr O’Farrell’s political protection who will guard Premier Berejiklian’s back now?

Alex Mitchell is our regular NSW political correspondent. His commentary appears every Friday. A former Sydney Sun-Herald State Political Editor, his most recent book is Murder in Melbourne: The untold story of Aiia Maasarwe. For more information or to purchase see http://www.cometherevolution.com.au/murder-in-melbourne/
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Alex Mitchell



Alex Mitchell is a former Sydney Sun-Herald State Political Editor whose commentary appears every Friday. His latest book is Murder in Melbourne – The Untold Story of Palestinian exchange student Aiia Maasarwe.



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2 Responses to ALEX MITCHELL: Ex-NSW Premier Barry O’Farrell quits for India
Jim KABLE says:
28 February 2020 at 11:12 PM


Watching the fawning and clutching at each other of Trump and Modi (sickening even former Modi supporters – to be quite frank) the appointment of yet another job for the boys to Delhi further underscores the corruption lying at the foundation of our political “class” and no – it is NOT a class act by any stretch. Check Barry’s estate as of now – and what it might be after his “diplomatic” posting is up. There might be more than case or five of Grange value over and above salary in his account. I would not be surprised. And why should not all our diplomatic postings come from our diplomatic corps? How do politicians get to be inserted into the process – just think – Downer, Brandis, Hockey – three off our ugliest politicians – to London and Washington? Nope! Not right, not proper!

2002 T BUCKLEY. Energy transition presents high risks and big opport for Aus - Pearls and IrritationsPearls and Irritations

TIM BUCKLEY. Energy transition presents high risks and big opportunities for Australia - Pearls and IrritationsPearls and Irritations

TIM BUCKLEY. Energy transition presents high risks and big opportunities for Australia

By P&I GUEST WRITERS | On 6 February 2020

As one of the three largest fossil fuel-export nations globally, Australia’s economy is exceptionally exposed to the current massive energy disruption occurring in markets around the world. At the same time, massive opportunities exist for Australia to take advantage of the energy transition.

Australia could continue to ‘invest’ in yet more thermal coal and liquefied natural gas (LNG) capacity and build more energy infrastructure soon to be stranded (and continue to entirely ignore the harm to regional communities involved).

Alternatively, Australia could accept the world is already moving and hence that we too need to transition and pivot towards low-emission industries of the future.

Australia’s domestic economy makes up 1.3% of global carbon emissions, but when exported emissions (scope 3) are taken into account, the real economic exposure is three times this level.

Australia is the world’s largest exporter of LNG, having overtaken Qatar this year to reach 81 million tonnes per annum (Mtpa) (worth A$49bn) or a 23% global share. Australia is likewise the world’s largest exporter of coking coal (for steel production), exporting a forecast 195Mtpa (A$36bn) in 2019/20, a global trade share of 55%. And in thermal coal (for electricity generation), Australia is second only to Indonesia, with exports of 213Mtpa (A$21bn), putting our global traded share at 18%.

With Australia’s Office of the Chief Economist forecasting A$106bn of fossil fuel exports in 2019/20, the Australian economy is exceptionally leveraged to the implementation of global treaties like the Paris Agreement and any resulting carbon borders, as proposed by the European Union.

Given the historical importance of fossil fuel exports to the Australian economy, it is understandable but deplorable that the incumbent industry seeks to undermine climate change and delay action, entirely supported by  the Murdoch media (which controls 59% of all newspapers across Australia), but also with coal lobbyists in government. However, the climate denial strategy is fated to fail.

The global energy sector disruption is well underway – and accelerating.

Global financial markets are assessing the financial risks of climate change. Firms like the A$10 trillion asset manager BlackRock announced divestment from thermal coal last month, and while couched in ESG terms, the underpinning is the fading economics of coal. BlackRock joins over 116 globally significant financial banks and insurers already exiting coal, with new announcements occurring on average weekly. And our thesis is that this trend will accelerate, given financial institutions act like lemmings. Only this week the CEO of State Street, manager of A$5 trillion of passive funds, warned they would now act on firms and boards failing their fiduciary duty to manage the known financial risks of climate change.

Last year marked a decade low for U.S. coal use with just a 25% share of all electricity, half that of a decade earlier. The U.S. Energy Information Administration forecasts another 6 gigawatts (GW) of coal-fired power plant closures in 2020, and not a single new coal plant.

Meanwhile, U.S. investors will fund US$45bn or 32GW of new renewable energy infrastructure in 2020 alone. Jim Robo, Chief Executive Officer of NextEra Energy, forecasts entirely unsubsidised near-firm wind power will cost just US$20-30 per megawatt hour (MWh) by 2025, by far the lowest cost source of generation, and Robo argues coal use in the U.S. power sector will likely cease entirely by 2030 (an entirely economic perspective).

These accelerating trends towards renewables are starker in those markets long seen by lobbyists as coal’s saviour.

India is the second largest producer, consumer and importer of thermal coal globally. Yet domestically, renewable energy tariffs are well below Rs3/kilowatt hour (US$40/MWh) which is 20% below existing domestic coal-fired power plant costs (averaging Rs3.60/kWh), and nearly half the cost of a new imported coal- or LNG-fired power plants.

India’s stranded energy assets tell a story of misreading the global disruption. Newly commissioned coal-fired power plants are regularly trading at 60-80% below total investment cost, with India’s financial institutions facing US$40-60 billion in loan losses.

Adani’s Carmichael thermal coal mine is infamous in Australia for its stranded climate bomb in the Galilee Basin. Few might also be aware that Gautam Adani in January 2020 said the age of renewable energy has dawned faster than anticipated, vowing: “Our vision is to become the world’s largest solar power company by 2025 and the largest renewable power company by 2030.” The Indian stock market has endorsed this renewables strategy with Adani Green’s share price up more than 500% in the last year. Further, in a single tender, Adani won the contract to supply 8 gigawatts of new solar in India at just Rs2.92/kWh (which equates to a levelised cost of energy of below US$30/MWh).

Australia should embrace the opportunities the global energy disruption is unleashing.

A key component of Australia’s electricity sector transformation was approved by the Australian Energy Regulator in January 2020. The A$1.5bn 900km South Australia – New South Wales grid interconnector is expected to reduce electricity costs for consumers while enabling another A$6bn of variable renewable energy infrastructure projects, bringing much needed regional investment and employment. This grid expansion facilitates 5.3GW of new wind and solar projects at tariffs of A$40-50/MWh (US$30-35/MWh), half the prevailing A$93/MWh wholesale electricity price in the National Electricity Market in 2019. Even allowing for firming, new zero emissions supply can be delivered at below A$70/MWh, offering a-more-than 25% reduction.

This is an important step forward, and IEEFA argues that the Regulator’s move materially underestimates the economic benefits of a clear, considered transition of electricity markets over the coming decade.

Australia’s bushfires are wreaking havoc on communities and our environment, and extreme weather events globally are becoming more frequent. The economic costs of failing to act on climate are far higher than the cost of preparing for the inevitable, technology-driven disruption of the energy system. Transition planning is necessary so that communities, workers and economies are not left stranded and ill-prepared.

Renewable energy prices have fallen some 10% annually globally, and IEEFA expects this to continue over the coming decade. When we quote renewable energy tariffs of A$40-50/MWh or firmed electricity tariffs of below A$70/MWh, we ignore the inevitable ongoing technology-driven deflation that is accelerating the energy transition.

In contrast, the long decline of Australia’s manufacturing sector has been further hollowed out over the last decade by the doubling and tripling of electricity and gas prices respectively.

While Australia’s four aluminium smelters and other manufacturing giants lament the looming end of subsidised electricity, forward-looking analysts are documenting opportunities for a re-industrialisation of Australia by embracing the revenue-generating opportunities of new technologies to bridge the intermittency of zero emissions, low-cost but variable renewable energy. Demand response management could see Australia’s smelters both progressively decarbonise their business whilst being paid to make historically inflexible operations flexible. Likewise, the opportunity for Australian technology to have the global lead are already being seized in efforts by Calix Ltd to decarbonise cement and Tritium’s fast-charging electric vehicles.

One can only imagine the opportunities for Australian businesses when our government finally decides to invest in new energy and technology opportunities.

Climate change impacts are accelerating. Financial markets are accepting this economic norm, increasingly investing in clean industries of the future while divesting from historically important, but now fading, fossil fuel industries of the past.

As the Reserve Bank is loudly warning, transition planning is urgently needed to help manage the orderly exit of those businesses looking increasingly stranded.

We must seize the huge new opportunities emerging.

Tim Buckley is the Director, Energy Finance Studies, Australasia at IEEFA, the Institute for Energy Economics and Financial Analysis.

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