Skip to main content

Green pressure: Two top European banks withdraw support to Adanis' $12 billion Australian coal project

By Our Representative
In a major setback to Gujarat's powerful Adani group known to close to Prime Minister designate Narendra Modi, Germany's largest bank, Deutsche Bank AG, has declared it will not finance the “controversial” coal port expansion in Australia near the Great Barrier Reef. The bank said, it was responding to calls from environmental groups and tourism operators. The move comes nearly a fortnight after Australia’s provincial Queensland government approved a proposal to build Australia’s biggest coal mine – Adani’s Carmichael mine in the Galilee Basin.
Meanwhile, an Institute for Energy Economics and Financial Analysis (IEEFA) report has warned investors it is too risky to invest in the project. Authored by Tim Buckley, director of Energy Finance Studies, Australasia, the report believes 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”.
Pointing out 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”, the report states, for “a new Greenfield power plant, imported coal would cost Rs5.40-5.70/kWh and rise 4% pa thereafter, whereas wind would cost Rs4.60/kWh and solar Rs5.50/kWh, with no inflation impact over time – making this a straight commercial decision for India to aggressively expand its investment in renewables” (click HERE to read report).
Following Deutsche Bank’s announcement, HSBC, Europe's biggest bank declared it was “extraordinarily unlikely” it would go near the project. HSBC's chief executive Stuart Gulliver said his bank had not received any proposals to finance the project and would need to consider it if one were made, but added it would appear to fall foul of its commitment to the Equator Principles - a framework adopted by banks to determine whether to lend on projects where there is environmental and social risk -- and UNESCO's position.
"If you look at what we set out in terms of the Equator Principles and if UNESCO's stance is as you say, I think it would be extraordinarily unlikely that we would go anywhere near it," he said when asked at HSBC's annual shareholder meeting. Australian environmental groups consider the two banks’ stand as “a win for those opposed to $26 billion worth of coal projects that plan to use the Abbot Point port.” Groups led by Greenpeace Australia fughting to protect the World Heritage-listed reef took their campaign to Europe, urging Deutsche Bank, Societe Generale and HSBC not to back the Queensland coal projects.
“They want to stop a government-approved expansion of Abbot Point that would involve dumping 3 million cubic metres of dredged soil about 25 kilometres (15 miles) from the Great Barrier Reef, an issue that is also of concern for UNESCO's World Heritage committee”, an Australian media report said, adding, “Campaigners against the Abbot Point expansion failed to win support from Societe Generale.”
"As we have seen, there is currently no consensus between UNESCO and the Australian government regarding the expansion of Abbot Point in the vicinity of the Great Barrier Reef. Our policy requires such a consensus at the least," Deutsche Bank co-chief executive Juergen Fitschen was quoted as saying at the bank’s the annual meeting. "We therefore would not consider applications for the financing of an expansion any further." Deutsche Bank was targeted because it helped refinance the lease on Abbot Point.
Those defending the port project say that it needs support for exporting coal from massive new mines planned by Adani and GVK, which is working with Australian billionaire Gina Rinehart.” GVK’s spokesperson has been quoted as saying that the Deutsche Bank decision to withdraw “doesn't impact our proposed projects in any way." Ieven then, The Financial Times, one of the world’s most powerful business dailies, describes the bank’s decision as “symbolic.”
The green groups in Australia have long campaigned to stop a government-approved expansion of Abbot Point that would involve dumping 3 million cubic metres of dredged soil about 25 kilometres (15 miles) from the Great Barrier Reef, an issue that is also of concern for UNESCO's World Heritage committee. The campaign has forced most investors out of the project. Adani is one of the last remaining investors standing for the port terminal, along with the GVK Group. Other investors have long abandoned their stakes, including mining giants Rio Tinto, BHP Billiton, Lend Lease and Anglo American.

Comments

TRENDING

North Gujarat gram panchayat bars villagers from dealing with Muslim hawkers, traders

By Our Representative  A gram panchayat in North Gujarat has barred its residents not to buy anything from Muslim traders and hawkers. An order of the Waghasan group gram panchayat of Tharad taluka of Banaskantha district dated June 30 states that the decision has been taken in the wake of beheading of a Hindu tailor after he posted a derogatory writeup on Prophet Mohammad in Udaipur. The gram panchayat resolution says, anyone seen buying or selling any commodity from a Muslim hawker or trader would be fined Rs 5,100. Bringing this to light, Mujahid Nafees, convener, Minority Coordination Committee, in a letter to Gujarat chief minister Bhupendra Patel, says, the state government should take legal action against the panchayat chief who has signed the “unjust” order. The letter says, the act of the sarpanch and other signatories is a violation of rule of law of the state and threat to peace, pointing out, the move is in violation of Article 15 of the Constitution, which says that none

Technocratic globalism, tyranny? Health Ministry warned: bill to 'enslave' Indians

Sandeep Pandey, Tushar Gandhi By Rosamma Thomas*  Union of Concerned Citizens, a group comprising Magsaysay Award winner Prof Sandeep Pandey, human rights activist Tushar Gandhi, former judge of the Bombay High Court BG Kolse Patil, pediatrician Dr Jacob Puliyel and several renowned Indian citizens have written to the Union Health Minister cautioning him against tabling the draft Public Health Bill in the Monsoon Session of Parliament. “The Public Health (Prevention, Control And Management Of Epidemics, Bio-Terrorism And Disasters) Bill, 2017 and a Prospective Bill of 2022 as discussed in news articles, is straightforwardly violative of Fundamental Rights of the citizens of India and therefore, Ultra Vires of the Indian Constitution. It contravenes several International Treaties and Conventions including the Nuremberg Treaty of 1947 which was enacted to ensure that no country would repeat such inhuman medical atrocities on fellow human beings”, the 12-page letter reads. “Strangely, t

Unlike Soviet Union, Russia is no friend to India: Ukrainian scholar tells 'Indian friends'

Counterview Desk In an open letter to "dear Indian friends", Anastasia Piliavsky, born in Odessa, Ukraine, studied at Boston and Oxford Universities (on a Rhodes Scholarship), and now teaches at King’s College, London, has said that she faces "deep moral dilemma", personally and professionally, over the "astonishingly unified Indian response to the war in Ukraine." Based on her interaction with a "number of thoughtful and caring Indian friends", in this letter, she says, she is "reeling at the ubiquitous silence at, justifications of or outright support for Putin’s terror, which now prevails in India, at the ubiquitous #IStandWithPutin and #istandwithrussia hashtags." She insists, India must understand, "Unlike the Soviet Union, Russia is no friend to India. Soviet leaders, beginning with (the Ukrainian) Nikita Khrushchev – who declared hindi rusi bhai bhai – built up deep political and cultural exchange with India." Text : I

'Drop all falsed charges': 150 citizens demand early release of AltNews co-founder

Counterview Desk  About 150 concerned citizens have demanded the release of Mohammed Zubair, co-founder of the fact-checkng newsportal AltNews, arrested over a 2018 tweet which allegedly hurt religious sentiments, even as booking for criminal conspiracy and having received foreign funds in violation of the Foreign Contribution Regulation Act (FCRA). Denied bail last weekend and sent to 14-day judicial custody, the concerned citizens, in a statement, regretted that while the Delhi High Court issued notice to the Delhi police on a petition filed on behalf of Zubair challenging the legality and propriety of his police remand and the seizure of his electronic devices, the “frivolous case” continues. Excerpts: The illegal arrest of Mr. Mohammed Zubair happened on June 27, 2022, by the Delhi Police for allegedly hurting religious sentiments and promoting enmity over a tweet from 2018. The IPC Sections included 153(a) (Promoting enmity between different groups on grounds of religion, race,

Chennai residents 'suffering': Faulty design, implementation of storm water project

By NS Venkataraman*  The Greater Chennai Corporation is now implementing storm water drainage project in 559 roads, covering a distance of 1033 kilometres, which cost around Rs 4,070 crore. For this massive project, which is targeted to be completed between April and September this year, huge loan has been availed from World Bank, Asian Development Bank and others. Several technocrats have pointed out that the project has been designed with outdated technology and quality of the implementation is so poor that the residents have been put to great hardships. As part of the project, digging of the road has been done to around 5 to 6 feet deep and width of around 4 to 5 feet. The drains are being constructed using steel reinforced cement concrete with two walls on either side with provisions for manhole, chute etc. This has been done in front of several houses leaving little space between the gate of the house and that of the drainage structure. As the work has been going on for mor

Prime Minister's 'affordable' housing policy fails to help Gujarat slum dwellers: Study

By Rajiv Shah  A new study on the implementation of one of the major policy initiatives for the urban poor by the Narendra Modi government after it came to power, Pradhan Mantri Awas Yojana (PMAY), has said that in Gujarat, which happens to be the Prime Minister’s home state, has quoted state officials as “confirming” that no progress towards tenure regularization, a key requirement for providing housing to the state’s slum dwellers. Stating that this particularly true of smaller town, the study, carried out by the non-profit Homes in the City (HIC), which is based in Bhuj, district headquarter of Kutch that saw a devastating earthquake in 2001, says, the failure to provide affordable housing is there despite the fact that there has been “significant demand” in all the 83 out of 153 Gujarat municipalities studied by experts involved in the study. According to the study, out f a total of 1.41 lakh demands for housing under the Beneficiary Led Construction (BLC) category, 94,232 (66.7%)

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Electricity Bill: Centre's reform measures contain 'carrot and stick package' for states

Counterview Desk  The Peoples’ Commission on Public Sector and Public Services (PCPSPS), claiming to be a network of eminent academics, jurists, erstwhile administrators, trade unionists and social activists, seeking consultations with stakeholders with those who are against the government’s decision to monetise, disinvest and privatise public assets/enterprises, has said that the proposed Electricity (Amendment) Bill-2022 will have far-reaching impacts on the finances of states. Insisting that the proposed Bill would lead to “assault on India’s federal structure”, in a statement, it says, it would weaken the finances of states’ power distribution companies, have adverse impact on utility employees, cripple the states' finances, impose a heavy cost burden on the smaller subsidized consumers (especially farmers), and benefit only corporate business houses. “States cannot afford to ignore the far-reaching implications of the Bill on their economy, finances, agricultural and industria

'Contractor-official nexus led to RTI activist's murder': Fact-finding team seeks probe

Courtyard inside of PWD office where Ranjeet Soni was killed Counterview Desk  A fact-finding team* visited Vidisha, Madhya Pradesh (MP) on June 19, 2022 to meet with the family of Ranjeet Soni, who was shot dead on June 2, 2022 inside the premises of the PWD office in Vidisha. The objective was to gather information about the circumstances surrounding the death of Ranjeet Soni and his work on exposing corruption through the use of the Right to Information (RTI) Act. A report prepared by the team members says that Ranjeet had been extensively using the RTI Act to access information from the government, and upon receiving documents showing misuse of public funds or corruption, he was filing complaints to various authorities including the Lokyukta, Publi Works Department (PWD) and the Chief Minister’s Office. It notes, Ranjeet used to work as a contractor and often undertook government works in collaboration with other contractors, including those being investigated for his murder. A f

'Highly abnormal': AltNews journo's arrest suggests 'deterioration in media freedom'

By Bharat Dogra*  Leading media organizations have come out in strong support of recently arrested journalist Mohammed Zubair. These organizations include, among others, the Editors Guild of India, the Press Club of India, the Delhi Union of Journalists and DIGIPUB, a platform for several important digital media organizations. All these organizations have condemned the recent arrest of the noted journalist and demanded his immediate release. While leading human rights organizations and political parties have also made somewhat similar statements, the strong support of media organizations is particularly important as the effort of the authorities has been to try to present the arrested journalist as someone who has been indulging in irresponsible journalism.  In such a situation the support of those media organizations who are familiar with his work and who are most capable of judging the quality of his work is very important. In this context it is important that some media organization