Adani beware: coal is on the road to becoming completely uninsurable



Insurers have to protect themselves against foreseeable risks. For insurers of fossil fuel projects, those risks are growing.
Shutterstock

John Quiggin, The University of Queensland

The announcement by Suncorp that it will no longer insure new thermal coal projects, along with a similar announcement by QBE Insurance a few months earlier, brings Australia into line with Europe where most major insurers have broken with coal.

US firms have been a little slower to move, but Chubb announced a divestment policy in July, and Liberty has confirmed it will not insure Australia’s Adani project.

Other big firms such as America’s AIG are coming under increasing pressure.

Even more than divestment of coal shares by banks and managed funds, the withdrawal of insurance has the potential to make coal mining and coal-fired power generation businesses unsustainable.

As the chairman and founder of Adani Group, Gautam Adani, has shown in Queensland’s Galilee Basin, a sufficiently rich developer can use its own resources to finance a coal mine that banks won’t touch.




Read more:
Echoes of 2008: Could climate change spark a global financial crisis?


But without insurance, mines can’t operate.

(Adani claims to have insurers for the Carmichael project, but has declined to reveal their names.)

Why are insurers abandoning coal?

By the nature of their business, insurers cannot afford to indulge the denialist fantasies still popular in some sectors of industry. Damage caused by climate disasters is one of their biggest expenses, and insurers are fully aware that that damage is set to rise over time.

Even so, a sufficiently hard-headed company might choose to work both sides of the street – continuing to do business with fossil fuel companies, while also writing more expensive insurance against climate damage.

The bigger problem insurers face is the risk of litigation holding fossil fuel companies responsible for climate-related damage. For the moment, this is a potential rather than an immediate risk.

As US insurer AIG, yet to announce a divestment policy, has observed:

Based on our monitoring, while the overall volume of litigation activity has increased, past litigation seems to have largely been unsuccessful on numerous grounds including difficulties in determining and attributing fault and liability to a particular company, and the judiciary’s deference to the political branches of government on questions relating to climate change.

Recent development suggest these difficulties will be overcome.

It’s becoming easier to finger climate culprits…

Until recently, the most immediate problem facing potential litigants has been demonstrating that an event was the result of climate change as opposed to something else, such as random fluctuations in climatic conditions.

Scientific progress on this “extreme event attribution problem” has been rapid.

It is now possible to say with confidence that climate change is causing an increase in both the frequency and intensity of extreme weather and weather-related events such as extreme heatwaves, drought, heavy rains, tropical storms and bushfires.

The Bulletin of the American Meteorological Society has highlighted three extremes in 2016 that would not have occurred if not for the added influence of climate change:

  • a persistent area of unusually warm water that lingered off the Alaskan coast, causing reduced marine productivity and other ecological disruptions

  • the extreme heatwave that happened in Asia, killing hundreds and destroying crops

  • the overall global atmospheric heat record set that year.

…and to allocate liability

The second line of defence against climate litigation that has held so far is the difficulty of imputing damage to the companies that burn fossil fuels.

While it is true that all weather events have multiple causes, in many circumstances climate change caused by the burning of fossil fuels has been a necessary condition for those events to take place.

Courts routinely use arguments about necessary conditions to determine liability.

For example, a spark from a power line might cause a bushfire on a hot, dry, windy day, but would be harmless on a wet cold day. That can be enough to establish liability on the part of the company that operates the power line.

These issues are playing out in California, where devastating fires in 2017 caused damage estimated at US$30 billion and drove the biggest of the power companies, PG&E, into bankruptcy.

As a result there has been pressure to loosen liability laws, leaving the cost of future disasters to be borne by Californians in general, and their insurers.

Lawyers will be looking for someone to sue.

Adani is a convenient target

The question facing potential litigants is whether any single company contributes enough to climate change to make it meaningfully liable for particular disaster.

Adani’s Carmichael mine provides a convenient example.

Adani says the 10 million tonnes of coal it plans to mine will produce only 240,000 tonnes of carbon dioxide, but this is semantic trickery. The firm is referring only to so-called “scope 2” emissions associated with the mining process itself.

When the coal is burned it might produce an extra 30 million tonnes of carbon dioxide, amounting to about 0.05% of global emissions.

A 0.1% share of the damage associated with the California fires is US$15 million, enough to be worth suing for. Other similarly sized mines will face similar potential liabilities.

Once a precedent is established, any company in the business of producing or burning fossil fuels on a large scale can expect to be named in a regular stream of suits seeking substantial damages.

When governments are successfully sued…

The remaining line of defence for companies responsible for emissions is the history of courts in attributing climate change to decisions by governments rather than corporations.

In the Netherlands, a citizen action group called Urgenda has won a case against the Dutch government arguing it has breached its legal duty of care by not taking appropriate steps to significantly restrain greenhouse gas emissions and prevent damage from climate change.

The government is appealing, but it has lost every legal round so far. Sooner or later, this kind of litigation will be successful. Then, governments will look for another party that can be sued instead of them.

…they’ll look for someone else to blame

Insurance companies are an easy target with deep pockets. Despite its hopeful talk quoted above, AIG would find it very difficult to avoid paying up if Californian courts found the firms it insured liable for their contributions to a climate-related wildfires or floods.

This is not a message coal-friendly governments in the US or Australia want to hear.

But the decision of Suncorp to dump coal, just a couple of months after the re-election of the Morrison government, makes it clear that businesses with a time horizon measured in decades cannot afford wishful thinking. They need to protect themselves against what they can see coming.




Read more:
Explaining Adani: why would a billionaire persist with a mine that will probably lose money?


The Conversation


John Quiggin, Professor, School of Economics, The University of Queensland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Advertisements

Adani has set a dangerous precedent in requesting scientists’ names



The Galilee waterhole is part of the area potentially affected by Adani’s Carmichael mine.
Stop Adani, CC BY-SA

Samantha Hepburn, Deakin University

A freedom of information request has revealed Adani sought the names of CSIRO and Geoscience Australia scientists involved in reviewing groundwater management plans related to its proposed Carmichael mine.

Adani argued it required a list of people involved in the review so as to have “peace of mind” that it was being treated fairly and impartially on a scientific rather than a political basis.

Ten days before Adani’s request, Geoscience Australia’s acting director of groundwater advice and data reportedly raised concerns that Adani had “actively searched/viewed” his LinkedIn profile and that of a colleague.




Read more:
Interactive: Everything you need to know about Adani – from cost, environmental impact and jobs to its possible future


Significantly, Adani’s request to the government was made before CSIRO and Geoscience Australia had reported their review findings back to the Queensland government.

While the federal Department of the Environment and Energy reportedly declined to hand over the names, the fact the letter was sent in the first place is concerning. It fundamentally interferes with the capacity of individual scientists to provide clear and informed evaluation.

The letter obtained under freedom of information by environmental group Lock The Gate. Click to enlarge.
Lock the Gate

Was Adani denied procedural fairness?

In the absence of clear legislation to the contrary, government decision-makers have a general duty to accord “procedural fairness” to those affected by their decisions. While procedural fairness is protected by common law, Commonwealth legislation also provides some protection, and a breach of procedural fairness is a ground for judicial review.

What exactly constitutes procedural fairness varies from case to case. Fundamentally, the principles of procedural fairness acknowledge the power imbalance that can arise between an administrative decision-maker and an individual citizen. Traditionally, procedural fairness has two elements: the fair hearing rule and the rule against bias.

The fair hearing rule requires a person – or company, in this case – to have an opportunity to be heard before a decision is made affecting their interest.

The rule against bias ensures the decision-maker can be objectively considered to be impartial and not to have prejudged a decision. This rule is flexible, and must be determined by reference to a hypothetical observer who is fair minded and informed of the circumstances.

There is no indication of any breach of procedural fairness in the environmental assessment process. The review of the groundwater management plan was conducted rigorously, according to the public interest.

The letter sent by Adani requesting the names of scientists was allegedly grounded in concerns about the possibility of anti-Adani activism by expert reviewers. Despite this, Adani made it clear that it was not explicitly alleging bias. Its objective, the letter said, was a desire to be “treated fairly and in a manner consistent with other industry participants”.

The real purpose of the letter

If Adani was seriously concerned about a breach of procedural fairness in the review of their groundwater management plan, it would have sought a judicial review. It did not – because there was no breach.

The scientists working at CSIRO and Geoscience Australia are all experts in their disciplines. They were engaged in the important process of determining whether Adani’s plan for managing groundwater around their mine would meet the environmental conditions of their mining licence. In other words, the scientists were doing their job.

Deputy Prime Minister Michael McCormack has said he “understands” Adani’s actions because of the delays associated with the review, but this is not how the system works.
The delays occurred because the original plan submitted by Adani had to be revised following expert review, and the updated plan required detailed evaluation. The mine could potentially have a serious impact on groundwater, the communities and ecosystems dependent on the water, and the nationally significant Doongmabulla Springs; this deserves careful scrutiny.




Read more:
Unpacking the flaws in Adani’s water management plan


As Adani has not brought an action for judicial review, the substantive purpose of the letter appears to be, as suggested by CSIRO representatives, to pressure scientists and potentially seek to discredit their work. The potentially chilling effect is clear.

Concern about climate change is not bias

The profound concerns raised by climate change and fossil fuel emissions are shared by many scientists around the world. The reports prepared for the International Panel on Climate Change make it clear that coal fired electricity must drop to nearly zero by 2050 to keep warming within 1.5℃.

This shared concern does not make scientists political activists. Nor does it prevent scientists from acting fairly and impartially when reviewing a groundwater management plan.




Read more:
The UN’s 1.5°C special climate report at a glance


An acceptance of climate science and even a belief that coal-fired energy should be decommissioned does not constitute bias. A reasonable bystander would expect most environmental scientists to be concerned about climate change.

It is crucial the environmental assessment process for large coal mines remains rigorously independent and absolutely free from any direct or indirect pressure from the coal industry. This is even more important when dealing with groundwater assessments, given their economic, social and ecological significance.

The letter, sent before the review was handed down, sets a dangerous precedent. Not because it suggests the scientists were impartial or there was any procedural unfairness involved in the process. But rather, because it jeopardises the independence of our scientists who, in seeking to ensure the longevity of our water, food and energy resources, carry a heavy responsibility to the public interest.The Conversation

Samantha Hepburn, Director of the Centre for Energy and Natural Resources Law, Deakin Law School, Deakin University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

With the LNP returned to power, is there anything left in Adani’s way?


Samantha Hepburn, Deakin University

After months of “start” and “stop” Adani campaigning, the coalmine is poised to go ahead following the surprise success of the Coalition government at the federal election.

So is anything still stopping the coalmine from being built?

Australia has a federal system of government, but states own coal. This means the Queensland Labor government is responsible for issuing the Adani mining licence.

And there are suggestions pressure is mounting in the state Labor party for the final approvals to be passed.

Strategists have argued the state government must approve the Adani mine if they are to be re-elected next year. One of the reasons Labor lost votes in Queensland may have been because of perceived delays in the approval process by the Queensland Department of Environment and Science.




Read more:
View from The Hill: It’s the internal agitators who are bugging Scott Morrison on Adani


Now, Queensland premier Annastacia Palaszczuk has appointed her coordinator-general to oversee the remaining approvals. In a press conference, she said:

I think that the community is fed up with the processes, I know I’m fed up with the processes, I know my local members are fed up with the processes … We need some certainty and we need some timeframes — enough is enough.

But what has “delayed” the state government so far is its legal duty to make sure the coalmine has an effective plan to manage matters of environmental significance.

Before the election, the federal government already approved two controversial environmental plans – the groundwater management plan and the finch management plan. The only thing left now is for the Queensland Labor government to give its nod of approval.



Not ‘delay tactics’, but a legal duty

The federal government does not have jurisdiction over state resources unless the project impacts matters of national environmental significance.

And the Adani mine is one such project. The mine would remove the habitat of an endangered species and significantly impact vital underground water resources.

This means the project needed to be referred to the federal government.

The aim of this referral was to make sure the environmental assessment process would sufficiently prevent or reduce irreparable damage to the environment.




Read more:
Traditional owners still stand in Adani’s way


Generally, in a bilateral arrangement, the federal government authorises the state to conduct an environmental assessment. And this is the framework that has informed the Adani project from the outset.

This is our rule of law, and one that’s in the public interest.

So any suggestion the Queensland government engaged in “delay tactics” when they were carrying out these critical legal responsibilities is inaccurate and misconceives the fundamental legal responsibilities that underlie this process.

There are two more approvals left

There are two outstanding approvals required for the environmental conditions to be satisfied: the black-throated finch environmental management plan and the groundwater environmental management plan.

The habitat of the endangered black-throated finch must be protected.
Steve Dew, CC BY

Black-throated finch

The Queensland government rejected the black-throated finch management plan submitted by Adani last month. This was because the plan did not constitute a management plan at all.

If the finch’s habitat is destroyed by the coalmine, then it’s necessary to outline how this endangered species will be relocated, and how this relocation will be managed.

But the Adani management plan does not do this. Rather than setting up a conservation area for the finch, the Adani plan proposed establishing a cow paddock, which would destroy the grass seeds vital for the survival of the finch.

Clearly this plan does not comply with the environmental condition attached to its licence.




Read more:
Why Adani’s finch plan was rejected, and what comes next


Groundwater management

The Queensland Department of Environment and Science is currently reviewing the groundwater management plan and have sought further advice from Geoscience Australia and CSIRO.

Adani must address how the mine will impact the threatened Doongmabulla Springs in the Great Artesian Basin. This involves creating a groundwater model capable of estimating how much groundwater levels will decrease when water is used to extract the coal.




Read more:
Unpacking the flaws in Adani’s water management plan


This is important because the basin is a water supply for cattle stations, irrigation, livestock and domestic usage. It also provides vital water supplies to around 200 towns, which are entitled to draw between 100 and 500 million litres of water each year.

Any impact on the underground aquifers that feed into the Great Artesian Basin would not only be devastating for the environment, but also for all the communities that rely on its water resources.

The original groundwater model submitted by Adani was not “suitable to ensure the outcomes sought by the EPBC Act conditions are met”.

It’s unclear whether Adani’s resubmitted groundwater model still under-predicted the impact because the further submissions made by Adani have not been subjected to extensive review at the federal level.

Great care needs to be taken to ensure the expert advice from CSIRO and Geoscience is properly heeded.

The mine may cause the Doongmabulla Springs to cease flowing.
Lock the Gate Alliance/Flickr, CC BY

The Adani mine is an outlier in the global coal community

The approval of the Adani coalmine comes at a time when the global community is rapidly moving away from coal.

Germany, a pioneer of the mass deployment of wind and solar power generation, announced the phaseout of its 84 coalfired plants.

Britain has just had its first week without coal-fired electricity, and this new energy mix has rapidly become the “new normal”.




Read more:
How to transition from coal: 4 lessons for Australia from around the world


But the international coal market is variable. India’s consumption is expected to rise by the end of 2023, but their aim is to reduce coal imports. And China’s coal consumption is projected to fall almost 3%, largely due to the country’s ambitious clean energy plans. What’s more, coal is in decline in the United States and across Europe generally.

The global economy is de-carbonising. As global warming accelerates and cleaner energy options gain more traction, coal will inevitably decline even further.

A hasty post-election approval of the outstanding environmental plans for Adani coalmine would not only conflict with our domestic legal framework, but also the broader imperatives of the international community.The Conversation

Samantha Hepburn, Director of the Centre for Energy and Natural Resources Law, Deakin Law School, Deakin University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Why Adani’s finch plan was rejected, and what comes next



The black-throated finch is on the verge of extinction.
Brian McCauley/flickr, CC BY-NC

Samantha Hepburn, Deakin University and April Reside, The University of Queensland

Adani’s plan to manage an endangered finch was rejected last week by the Queensland government, stalling progress on the Carmichael mine.

The mine would cover much of the best remaining habitat for the endangered black-throated finch. The Queensland government required Adani to commit to gathering more accurate finch population data, limit the cattle grazing in the finch conservation area and determine food availability throughout the year, before they could approve the plan.

The rejection is one of two outstanding environmental approvals required before Adani can commence work on the mine. The second is the plan to manage groundwater-dependent ecosystems, which the Queensland government has yet to come to a decision on.




Read more:
Unpacking the flaws in Adani’s water management plan


The federal government has been reported as “already approving” the finch plan. But legally, the Queensland government must determine whether the plan complies with the conditions of the environmental authority and, under the bilateral framework, the federal government must give due regard to this assessment.

What’s wrong with Adani’s plan?

Last Friday Queensland’s Department of Environment and Science decided not to approve Adani’s black-throated finch management plan because it does not fulfil certain basic requirements.

The decision is based on a detailed report from an independent expert panel.

The black-throated finch is on the verge of extinction, one of 238 threatened Australian birds.

The black-throated finch is experiencing habitat loss and degradation.
Steve Dew/flickr, CC BY



Read more:
For the first time we’ve looked at every threatened bird in Australia side-by-side


The greatest threat to the black-throated finch is habitat loss: it has disappeared from over 80% of its original range. Strong protection, and careful management, of its remaining habitat is crucial.

The finch, once found across north-eastern Australia, is now largely found on Moray Downs and surrounding properties, north-west of Clermont in central Queensland. A core part of the habitat is within the 28,000 hectare (ha) footprint of the Carmichael mine, where there are far more black finches than elsewhere due to the intact woodlands and a history of minimal livestock grazing.

It is expected the mines will disturb 50,977 ha of black-throated finch habitat, and that 34,156 ha will be completely cleared.

A total of 87 square kilometres of habitat will be destroyed through the creation of open pits, and a further 61 square kilometres may be degraded beyond repair due to the influence of underground mining on groundwater.

After habitat loss, the second greatest threat to the finch is cattle grazing, which destroys the grass seeds they need to survive. Yet Adani’s management plan for the black-throated finch involved grazing cattle on areas that are supposed to be devoted to conservation of the finch.

Instead of establishing a finch conservation reserve, the Adani plan proposed what was in effect a paddock. Providing a species management plan that effectively conserves finch habitat is a core condition of Adani’s mining licence.

State vs federal priorities

The Queensland government’s rejection of the plan brings into stark focus some of the problems with the existing environmental assessment framework.

The Adani plan includes cattle grazing, despite the threat to finch habitats.
Shutterstock

The environmental authority for the mining licence was approved by the Federal government. The environmental management plan for the finch did not, however, address core impact concerns. And yet this is the very reason that the plan was required from the outset. The inadequacies of the plan only became apparent because of the oversight of the Queensland government.

The federal government has not been proactive despite’s its mandate under our National environment act – the Environmental Protection Biodiversity Conservation act. In fact, a recent analysis found the federal government has approved hundreds of projects to clear black-throated finch habitat over the last 18 years.




Read more:
Death by 775 cuts: how conservation law is failing the black-throated finch


There are clearly differences in priorities regarding the environment between a federal Liberal and a state Labor government. However, environmental assessment can only be effective if is not undermined by political agendas, and is grounded in scientific rigour and scrutiny.

A one-stop shop

At the federal level, any project likely to have a “significant impact” on a matter protected by the Environment Protection and Biodiversity Conservation Act must be referred to the federal environment minister.

If the minister decides the project impacts a matter of national environmental significance, he or she will then determine how to assess that project at the national level. Legislated options include: an environmental impact statement, a public environment report and public inquiry.

The federal government has entered into bilateral agreements with all state and territory governments. As a result, rather than the state and federal governments conducting separate assessment, the aim is to promote a single, focused environmental evaluation.

The Queensland government has entered into a bilateral assessment agreement with the Commonwealth government for Adani’s coal project, which effectively allows it to make an environmental assessment that the Commonwealth Minister will then take account of when deciding whether to grant approval.

This means that both the Queensland and the federal government are involved in the approval and assessment process environmental authorities and conditions, one of those being the management plan for the black-throated finch. In order to optimise outcomes they need to work together collaboratively.

Where to next?

The rejection means that Adani will now need to submit a new or revised plan that addresses the Queensland government’s concerns. In particular, Adani will need to limit cattle grazing in the conservation area, and gather more information regarding the availability of seed throughout the year.

This may take time but is critical, because in its current form, the plan does not meet the legal requirements for the Environmental Authority, which means that it cannot be approved at the state level.

Without state approval the Adani coal mine cannot proceed. The Queensland government has rigorously assessed Adani’s management plan by commissioning a report by an independent expert panel and then acting on the advice of this report.

This robust approach is crucial to the whole framework of environmental assessment. Genuine commitment to protecting endangered species and managing vital groundwater resources is vital if we want to reverse Australia’s dire trajectory of environmental decline.The Conversation

Samantha Hepburn, Director of the Centre for Energy and Natural Resources Law, Deakin Law School, Deakin University and April Reside, Researcher, Centre for Biodiversity and Conservation Science, The University of Queensland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Unpacking the flaws in Adani’s water management plan


Matthew Currell, RMIT University and Adrian Werner, Flinders University

Adani’s groundwater dependent ecosystem management plan for its proposed Carmichael coal mine was recently approved by federal Environment Minister Melissa Price, despite a review from CSIRO and Geoscience Australia that points out major problems with the modelling.

According to the minister, approval was granted only after the company made commitments to fully address these issues (a claim later called into question).




Read more:
Morrison government approves next step towards Adani coal mine


However, when we look closely at the flaws in Adani’s plan it’s not clear they can credibly be remedied. There’s a very real chance the mine could cause irreversible harm to the nationally significant Doongmabulla Springs.

What a groundwater model is supposed to do

The primary purpose of the model – as is the case for most groundwater models used in mining impact studies – is to determine the likely effect of mining on groundwater levels and flows of water to and from key areas.

One important goal of the model is to estimate the drawdown (decrease in groundwater levels) in aquifers around the mine as it pumps water and digs through aquifers to reach the coal.

Drawdown may cause groundwater levels to decline below thresholds critical to the function of whole ecosystems, such as (in this case) the Doongmabulla Springs.

Groundwater models can also be used to assess changes in flows of water to and from springs and streams, such as the Carmichael River, which crosses the mine site.

What flaws in Adani’s modelling were identified?

CSIRO and Geoscience Australia’s review pointed out three major flaws:

1. Over-prediction of flow from the Carmichael River to groundwater

Groundwater and surface water are intimately connected in the water cycle. For example, in some areas surface water can “recharge” aquifers, while in others aquifers provide water that keeps rivers flowing.

According to the review, Adani has overestimated how much water would flow from the Carmichael River into the aquifers below. This means there is in reality less water available to replenish the groundwater system below the river, which in turn means that the mine will likely cause greater groundwater drawdown than predicted.

2. The hydraulic parameters chosen for key geological units

A fundamental part of any groundwater model is the hydraulic properties selected for each geological layer through which groundwater moves. The most important is hydraulic conductivity: a measure of how much water can be transmitted through an aquifer over time. The review found that Adani’s model uses hydraulic conductivity values significantly different from the values estimated by previous testing of the geological layers at the mine site.

For example, Adani’s model assigned one key layer (the Rewan Formation) much lower hydraulic conductivity values than actually indicated when consultants tested this layer.

This is critically important, as it is the main layer separating the coals that will be mined from shallower aquifers. CSIRO and GA’s conclusion was that this also caused the model to predict less drawdown at the Doongmabulla Springs than is likely in reality.




Read more:
Traditional owners still stand in Adani’s way


3. Bore heights used to calibrate the model were incorrect

According to the Australian Groundwater Modelling Guidelines, groundwater models should be calibrated. This involves comparing predictions made by the model with already measured water levels and other field data.

Calibration fine-tunes models, ensuring they are capable of replicating known behaviour, before predicting future behaviour. Correcting errors identified in the heights of some bores used in the model resulted in a lower overall match between modelled and observed water levels from the site.

The Carmichael River will be affected by Adani’s mine.
Lock The Gate Alliance/flickr, CC BY

Significance of these issues

These flaws are of major significance. If the model is corrected to address them, the review points out that the drawdown at the Doongmabulla Springs will in all likelihood be higher than required under Adani’s federal approval conditions.

We have published peer-reviewed science pointing out additional problems, which the review also noted.

A key uncertainty yet to be resolved is determining the predominant aquifers contributing water flow to the Doongmabulla Springs. It’s possible there exists a deeper source aquifer (rather than, or in addition to, the aquifer assumed by Adani). This has further implications for the level of impact the mine will have on the springs, and the effectiveness of the proposed monitoring program.

Adani was not required to address these problems prior to federal approval of its groundwater plans and is not required to do so until two years after mining activity begins (although, the Queensland government may yet require this).

This raises questions about the environmental approvals process, which currently allows major scientific issues to remain unresolved. Prior to approval, there are opportunities for scrutiny of a project’s impacts, which can result in major project modifications, strict operating conditions or even (in rare cases) rejection. Following approval, opportunities for independent scientific and public input and further modifications are far more limited.

‘Adaptive management’ will not protect the Doongmabulla Springs

In the decision reached by the Queensland Land Court following an objection to the mine in 2014-15, significant uncertainty about its future impacts was recognised. However, it was concluded “adaptive management” would nonetheless safeguard the Doongmabulla Springs. This argument was also the basis for federal approval under the then environment minister, Greg Hunt.

But what is “adaptive management” and can it be meaningfully used here? We would argue no.

The mine may cause the Doongmabulla Springs to cease flowing.
Lock The Gate Alliance/flickr, CC BY

Adaptive management is essentially when a company commits to flexibly changing its approach as it learns more about the environmental impact of its activities.




Read more:
Why does the Carmichael coal mine need to use so much water?


However, there is a significant risk that the mine may cause the Doongmabulla Springs to irreversibly cease flowing. Adaptive management, as the US Department of the Interior points out, cannot be used if decisions cannot be meaningfully revisited and modified.

Indeed, Adani has not defined substantive corrective measures for reversing future spring-flow impacts from mining – an essential element of adaptive management. It’s critical Adani puts forward its plan for dealing with these very real risks. Without a credible plan, regulators cannot hope to make an informed decision about the risk the mine poses to the Doongmabulla Springs.The Conversation

Matthew Currell, Associate Professor in Environmental Engineering, School of Engineering, RMIT University and Adrian Werner, Professor of Hydrogeology, Flinders University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Morrison government approves next step towards Adani coal mine


Michelle Grattan, University of Canberra

The Morrison government has ticked off on the groundwater management plan for the proposed Adani coal mine, an important but not a final step for the central Queensland project receiving the go-ahead.

The decision, taken by Environment Minister Melissa Price, comes after intense pressure from Queensland Liberal National Party members, including a threat by senator James McGrath to publicly call for Price’s resignation if she failed to treat the Adani project fairly.




Read more:
View from The Hill: It’s the internal agitators who are bugging Scott Morrison on Adani


But the Adani decision will not help Liberals fighting seats in the south, with strong anti-Adani campaigns in some key electorates.

Price said in a statement on Tuesday: “CSIRO and Geoscience Australia have independently assessed the groundwater management plans for the Carmichael Coal Mine and Rail Infrastructure project”, and both had confirmed the revised plans met strict scientific requirements.

“Following this independent assessment and the Department of Environment and Energy’s recommendation for approval, I have accepted the scientific advice and therefore approved the groundwater management plans” for the mine and rail infrastructure under Environmental Protection and Biodiversity Conservation Act.

She said the decision did not amount to final approval for the project.

It needed further approvals from the Queensland government before constructing could commence. So far only 16 of 25 environmental plans have been finalised or approved by the Commonwealth and Queensland with nine more to be finalised.

The project “must meet further stringent conditions of approval from the Commonwealth before it can begin producing coal,” Price said.

It had “been subject to the most rigorous approval process of any mining project in Australia,” she said.

Resources Minister Matt Canavan, a Queenslander who has been agitating for progress on the mine, said: “I welcome these further approvals. Now we need the state Labor government to stop dragging their heels and get on with the job of creating these jobs.”

Bill Shorten – who, like the government, has been caught between the conflicting imperatives of campaigning in central Queensland and in southern Australia on this issue – said the Queensland government now had to go through its processes.

Labor would “adhere to the law” and be “guided by the science,” he said. “We are not interested in sovereign risk.”

Referring to the pressure within the Coalition, Shorten said: “Trying to pressure people now creates a cloud over a process that didn’t need to be there but for the government’s division in their own ranks”.

Labor’s climate spokesman Mark Butler said that people across Australia would be asking themselves “how can you have any confidence that this decision was made on the merits of the case rather than because of the internal division and chaos in this government?”.




Read more:
Grattan on Friday: Scott Morrison struggles to straddle the south-north divide


The Australian Conservation Foundation’s Christian Slattery said “Coal-loving Coalition MPs appear to have strongarmed the Environment Minister into granting Adani access to Queensland’s precious groundwater on the eve of the election”.

Slattery said that if Price had been pressured to rush through the approval ahead of the election, the decision might be open to legal challenge.

He said the Queensland government was yet to sign off on Adani’s Black-Throated Finch Management Plan and Groundwater Dependent Ecosystem Management Plan.

“And, importantly, Adani does not have federal approval for the proposed above-ground water infrastructure it requires to support its proposed thirsty coal mine,” Slattery said.

GetUp said there would be a backlash against the decision. “The Coalition can expect to lose a swathe of seats around Australia for their capitulation to a single coal company at the expense of the community.

“A storm of local groups are already hard at work in Kooyong and Flinders, and now GetUp is going to make an extra 100,000 calls into Flinders and 80,000 calls into Kooyong. This could cost Josh Frydenberg and Greg Hunt their jobs”.

Tasmanian independent MP Andrew Wilkie said: “This decision is environmental vandalism at its most extreme, facilitated by the most useless environment minister the country’s ever seen”.

In a statement Adani complained about its treatment from the Queensland government.

“Throughout the past 18 months, the Federal Department provided us with certainty of process and timing, including the steps involved in the independent review by CSIRO and Geoscience Australia experts.

In contrast, the Queensland government has continued to shift the goal posts when it comes to finalising the outstanding environmental management plans for the mine and is standing in the way of thousands of jobs for Queenslanders.

It’s time the Queensland government gave us a fair go and stopped shifting the goal posts so we can get on with delivering these jobs.”The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Adani’s new mini version of its mega mine still faces some big hurdles


Samantha Hepburn, Deakin University

Indian mining multinational Adani has announced that it will self-fund a significantly smaller coal mine in the Galilee Basin, after failing to secure finance from more than 30 domestic and international banks and lenders.

Federal Resources Minister Matt Canavan has described Adani as a “little Aussie battler” and praised the newly scaled-down project’s purported regional economic benefits.

The scaling down of the project has been extensive. Adani Mining chief executive Lucas Dow said the mine will cost A$2 billion and initially produce up to 15 million tonnes of thermal coal per year, with plans to ramp production up to 27.5 million tonnes per year.

That is far more modest than the A$16.5 billion investment in digging up 60 million tonnes of coal a year which the company first announced in 2010. The original plan was to transport the coal along a new 388km rail line to a specially built terminal at Adani’s Abbot Point coal port, for export to India. Under the scaled-down version of the project, Adani will need to secure access to existing rail infrastructure.




Read more:
Infographic: here’s exactly what Adani’s Carmichael mine means for Queensland


But there is still no guarantee that the mine will necessarily go ahead. Opening a new coal mine – even one with a relatively modest A$2 billion price tag – is socially and environmentally irresponsible, given the urgency with which the Intergovernmental Panel on Climate Change says we need to reduce global greenhouse emissions, the fact that Australia is not currently on track to meet its own emissions targets, and of course the fact that 2018 is on course to become the fourth-hottest year on record.

The economics barely stack up either. A recent IEEFA report indicated that coal is facing a terminal decline as Asian markets make the transition to cheaper and more efficient renewable alternatives. Existing thermal coal power in India costs US$60-80 per megawatt-hour, roughly double the cost of new renewable generation. The Mundra coal plant, where much of the Adani coal was destined, is already operating under capacity and has been closed for significant periods.

Adani has decided not to proceed with its initially planned 388km rail link, and will instead aim to use the existing Aurizon rail infrastructure. However, there is a 200km gap in this link which will cost a significant amount to bridge – albeit almost certainly much less than the A$2.3 billion cost of the originally planned railway. Aurizon Network is legally obliged to consider Adani’s access application, but has not yet assessed and approved it.

Environmental and Indigenous issues

Then there are the existing and significant concerns regarding Adani’s environmental management of issues such as water contamination in the Caley Valley Wetlands near the Abbot Point terminal. These will not disappear just because the project has been revised.




Read more:
Latest twist in the Adani saga reveals shortcomings in environmental approvals


Gaining the consent of Traditional Owners will also be crucial, yet the 12-member native title representation group is split down the middle. Adani’s existing Indigenous Land Use Agreement has been appealed in the High Court by the Wangan and Jagalingou people, on the basis that the group has not genuinely consented to the agreement, and that overriding native title to make way for a coalmine is socially and culturally regressive. If the court does not uphold the agreement, this would create profound difficulties for the project as they may not be able to proceed with the development of the coal mine to the extent that it interferes with Indigenous landholdings.

So, while the decision of Adani to self-fund a scaled-down coalmine in Queensland might indicate determination, it also suggests a resistance to, and misunderstanding of, a rapidly changing energy sector and the broader social and environmental responsibilities that this change necessitates.The Conversation

Samantha Hepburn, Director of the Centre for Energy and Natural Resources Law, Deakin Law School, Deakin University

This article is republished from The Conversation under a Creative Commons license. Read the original article.