PLEA Network

19 December 2017, Renew Economy, The further unravelling of Adani’s Carmichael coal project. While the Adani Group has bounced back many times from adverse developments with respect to it’s Carmichael coal proposal, the run of negative news has continued at a rapid clip of late, putting the project in real doubt. This week started badly for Adani, with the Downer Group announcing it had relinquished a proposed A$2bn non-binding Letter of Award received in December 2014. This follows on from the Queensland government delivering its veto of the proposed A$1bn loan subsidy last week and a multitude of leading Chinese banks announcing a decision to avoid this controversial project the week before. The Institute for Energy Economics and Financial Analysis (IEEFA) would suggest there is a common point of linkage: the building momentum of the Paris Climate Agreement combines with the unprecedented rate of renewable energy deflation evident globally in the last two years to make increasingly clear stranded asset risks for greenfield thermal coal export proposals. As aptly highlighted by Geoff Summerhayes, Executive Director of the Australian Prudential Regulation Authority (APRA), the entry into force of the Paris Climate Agreement ‘brings the horizon forward’ for action on climate change. Read More here