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  • Can Adani’s coal mine survive without Newman?

    Can Adani’s coal mine survive without Newman?

    The landmark Queensland state election on Saturday is likely to introduce a new Labor-led government elected with the key policy framework of “Saving the Great Barrier Reef”. The ALP has committed to remove state subsidies for the Galilee coal and associated rail projects, ban reef dumping and to ensure no dredging is undertaken at Abbot Point prior to financial close on any project.

    This election result will return the focus of Adani’s $15 billion Carmichael coal mine, plus associated rail and port infrastructure, proposal to the key questions of financial viability and strategic logic in the face of the structural decline of seaborne thermal coal markets.

    Central to its “Saving the Great Barrier Reef” policy, the Queensland Labor Party has committed to:

    – “Ban the sea dumping of capital dredge spoil within the Great Barrier Reef World Heritage Area”;

    – “Labor does not support … plan to dump dredge spoil from Abbot Point onto the Caley Valley Wetlands”;

    – “We will ensure that dredging does not go ahead until Adani has demonstrated its project has financial close”;

    – “The stewardship of the Great Barrier Reef necessitates that we have a comprehensive climate change policy”;

    – “Repeal the Newman Government’s water laws”; and

    – “Labor will not spend taxpayer money to build a private rail line for a private commercial project … Labor will not do any secret deals.”

    Labor’s policies will see the removal of numerous taxpayer funded subsidies as diverse as buying dredge spoil, co-funding a foreign billionaire-owned private rail line, allocating free water permits and funding a new single-purpose 200km water channel to the Carmichael proposal.

    The commercial viability of Adani’s Carmichael proposal without this government support is highly questionable. At the least the port project will not be allowed to commence until financial close, which is currently not scheduled until the end of 2015.

    The proposal to open up the Galilee coal basin for up to nine new mega-coal projects would see up to 300 million tonnes per annum of additional thermal coal exports. The 60 per cent decline in coal prices over the last four years reflects significant oversupply and weaker than expected demand. Flooding the seaborne coal market with a further 30 per cent increase in global supply is against Australia’s national interests.

    Opening the remote and lower quality Galilee Basin flies in the face of increasing global action on climate change by many of Australia’s major trading partners. Korea has just launched its national emissions trading scheme last month. In November 2014, India committed to a $US100 billion renewable energy program and $US50 billion electricity grid modernisation in the next five years. In the same month the China-US Climate Agreement committed both countries to expand on their significant, sustained efforts to systemically reduce emissions.

    There are now serious questions for the incoming executive in Queensland to examine how and why such lavish promises by way of enormous public subsidies were made to the Adani group in the face of conventional economics and our, and many others, continued analysis that showed this proposal was unbankable on commercial terms.

    Tim Buckley is the director of Energy Finance Studies, Australasia for the Institute for Energy Economics and Financial Analysis. He has 25 years of financial markets experience, including 17 years with Citigroup culminating in his role as managing director and head of Australasian equity research.

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  • $85,000 from big tobacco George Wright LABOR

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    $85,000 from big tobacco

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    George Wright via sendgrid.info 

    4:40 PM (0 minutes ago)

    to me
    .
    Neville,Tony Abbott just told the National Press Club his colleagues should be saying that “he’s a great person, doing a great job”, but what’s more disturbing than that is that there are corporate donors who seem to agree with him.

    While Queensland Labor edged closer to victory over the weekend, the Australian Electoral Commission released the details of political donations for last year, and it shows corporate donors gave to the Coalition at five times the rate they gave to Labor, including a handsome sum of $85,000 from big tobacco despite Tony Abbott promising in 2013 he’d join Labor in refusing tobacco donations.

    Despite the polls, there’s still a big risk that when big dollar donors pump money into election war chests, the top end of town get what they want and Australians get the short end of the stick.

    That’s how you get such an unfair Budget. That’s how big business get to draft Government policy. That’s how big tobacco try to bully their way out of plain packaging.

    But it’s not how we want to do things. Why don’t we start our own people-powered war chest?

    https://alp.org.au/davidvsgoliath

    The Coalition gets the big dollars and marginal electorates get saturated with their message.

    It means that despite the polls and unfair policies of the Government, the odds are still stacked against us, before election season even begins.

    That’s not how a democracy should function. What if instead we had a campaign driven by volunteers, funded by thousands of small donations? It’s the only way we can counter their ad buys and their massive campaign war chest.

    https://alp.org.au/davidvsgoliath

    It’s not a dream — if we start now, we can make it a reality. If you chip in just $5, and enough of us join you, we can make sure the Coalition can’t buy their way out of the trouble they’re in.

    Together we can give them a run for their money.

    George.

  • Queensland election result could be terminal for Galilee coal projects

    rss

    Queensland election result could be terminal for Galilee coal projects

    Print Friendly

    The landmark Queensland State election yesterday is likely to introduce a new Labor-led government elected with the key policy framework of “Saving the Great Barrier Reef”.

    The ALP has committed to remove state subsidies for the Galilee coal and associated rail projects, banning Reef dumping and to ensure no dredging is undertaken at Abbot Point prior to financial close on any project.

    Seen at the Sydney rally to save the GBR

    This election result will return the focus of Adani’s $15 billion Carmichael coal mine plus associated rail and port infrastructure proposal to the key questions of financial viability and strategic logic in the face of the structural decline of seaborne thermal coal markets.

    Central to its “Saving the Great Barrier Reef” policy, the Queensland Labor Party has committed to:

    • “Ban the sea dumping of capital dredge spoil within the Great Barrier Reef World Heritage Area”;
    • “Labor does not support … plan to dump dredge spoil from Abbot Point onto the Caley Valley Wetlands”;
    • “We will ensure that dredging does not go ahead until Adani has demonstrated its project has financial close”;
    • “The stewardship of the Great Barrier Reef necessitates that we have a comprehensive climate change policy”;
    • “Repeal the Newman Government’s water laws”; and
    • “Labor will not spend taxpayer money to build a private rail line for a private commercial project. …. Labor will not do any secret deals.”

    Labor’s policies will see the removal of numerous taxpayer funded subsidies as diverse as buying dredge spoil, co-funding a foreign billionaire owned private rail line, allocating free water permits and funding a new single purpose water channels for 200km to the Carmichael proposal.

    The commercial viability of Adani’s Carmichael proposal without this government support is highly questionable. At the least the port project will not be allowed to commence until financial close, currently not scheduled until the end of 2015.

    The proposal to open up the Galilee coal basin for up to nine new mega-coal projects would see up to 300 million tonnes per annum of additional thermal coal exports. The 60 per cent decline in coal prices over the last four years reflects significant oversupply and weaker than expected demand. Flooding the seaborne coal market with a further 30% increase in global supply is against Australia’s national interests.

    Opening the remote and lower quality Galilee Basin flies in the face of increasing global action on climate change by many of Australia’s major trading partners.

    Korea has just launched its national emission trading scheme in January 2015. In November 2014 India committed to a US$100 billion renewable energy program and US$50 billion electricity grid modernisation in the next five years. In the same month the China-US Climate Agreement committed both countries to expand on their significant, sustained efforts to systemically reduce emissions.

    There are serious questions for the incoming executive in Queensland to examine how and why such lavish promises by way of enormous public subsidies were made to the Adani group in the face of conventional economics and our, and many others, continued analysis that showed this proposal was unbankable on commercial terms.”

    Tim Buckley is the Director of Energy Finance Studies, Australasia for the Institute for Energy Economics and Financial Analysis. He has 25 years of financial markets experience, including 17 years with Citigroup culminating in his role as Managing Director and Head of Australasian Equity Research. His   detailed reports on Adani and GVK, global electricity markets plus the Indian electricity sector can be found here

  • Population and the Queensland Election Kelvin Thomson MP

    Monday, February 2, 2015

    Queensland Government Knocks Over the Witches Hats

    In 2010 I visited Queensland on several occasions to give speeches about rapid population growth, in Brisbane, on the Sunshine Coast, and at the Woodford Folk Festival. I encountered great unhappiness at the impact rapid population growth was having in Brisbane and South-East Queensland, and was not surprised when the Queensland Labor Government was defeated in 2012, although the scale of the defeat was remarkable.
    In many respects the Queensland Government had fallen victim to the same problems that had beset the Victorian Labor Government which was defeated in 2010. But like the Victorian Labor Party the Queensland Labor Party has now pulled off an astonishing turnaround, apparently regaining office in a single term and toppling an elected Premier in the process. Ted Baillieu was replaced by his own party and did not get to contest the election; Campbell Newman lost his seat.

    Political commentators are astonished at this growing political volatility. Kevin Rudd was elected as Prime Minister and replaced by Julia Gillard before the 2010 election. She in turn was replaced by Kevin Rudd before the 2013 election. It is now widely speculated that Tony Abbott, too, will not get to seek re-election as Prime Minister. So what is going on?

    No doubt factors like broken election promises, the 24/7 media cycle, the Global Financial Crisis, and voters choosing State and Federal Governments of different complexions, are having an impact. But one feature of the past decade is regularly overlooked. In 2004 Australia had a net migration program of 100,000. Then in the space of three years it ratcheted up to well over 200,000, where it has stayed. This doubling has given Australia rapid population growth for the past decade – we now have an extra million people every three years. Prime Minister Howard, who introduced this rapid increase, lost his seat at the 2007 election.

    I have become convinced that rapid population growth and political instability go hand in hand. I think of this as the Witches’ Hats theory of government. Think about those Advanced Driving Courses that require drivers to drive in slalom fashion through a set of plastic or rubber orange cones, commonly called witches hats. The driver’s mission is to avoid the hats. If they hit a certain number, they fail the test.

    I think the re-election task of a government has some similarities. It you think of each hat as an area of public policy, such as education, health, housing, transport, aged care etc, if a government mucks up an area of public policy it is akin to hitting one of the witches’ hats. If a government hits a number of hats, ie fails a number of public policy tasks, it is likely to be voted out, just as the driver who hits the hats won’t get their Advanced Driving Qualification.

    Now it seems pretty obvious that if you’re a driver, you are much more likely to avoid the hats if you are travelling at 50 kph, whereas if you’re driving at 100 kph, you’re pretty likely to hit some hats. And if you’re a government you’re much more likely to solve peoples’ problems if you have a population that is growing slowly, rather than one that is growing rapidly.

    The Queensland and Victorian Liberal Governments were elected on the back of public discontent with issues such as planning, public transport, cost of living, housing unaffordability and job insecurity. But as these things had been caused by rapid population growth, and the growth continued, they did not solve those problems, and paid a massive electoral price for it. For example Governments get punished for trying to sell off public assets. They do it to raise money to build new infrastructure, or pay down debts incurred as a result of past infrastructure building. But they would not need so much money, or so much infrastructure, if the population wasn’t growing so fast. The Queensland academic Jane O’Sullivan says that population growth of 2 per cent doubles the infrastructure task compared with that in a stable population.

    It is not only in Australia that rapid population growth drives political instability. It happens right around the world. Governments in the Scandinavian countries with slow population growth are able to solve people’s problems and enjoy considerable political life expectancy. Countries which have high birth rates, like Egypt, Nigeria and the Philippines, have chaos. In the Pacific Islands Samoa has had a relatively stable population, and stable government, for decades, whereas Papua New Guinea and the Solomon Islands have had neither.

    It is not fashionable to focus on our past decade of rapid population growth as a cause of Australia’s political instability and volatility. Some are happier focussing on the alleged personal qualities of our leaders – they heap praise or derision on Anna Bligh, or Tony Abbott, or Campbell Newman, when the fact is that a different leader with the same policies would have led to the same result. Others want to interpret election results through a highly ideological prism, and come unstuck as a consequence of believing too much of their own propaganda.
    It is probably too late for Tony Abbott. But perhaps his successor, or successors, and other political leaders around Australia, might want to ask themselves “do I want to be yet another casualty of our equivalent of the Colosseum, or do I want a respectable time in office, as Prime Ministers and Premiers had as recently as the 80s and 90s?” And if so, isn’t the way to improve my political life expectancy to slow the population car down and focus on solving people’s real life problems?

    Posted by Kelvin Thomson MP at 1:37 PM

  • Climate Change Will Hit Australia the Hardest, Study Says

    Climate Change Will Hit Australia the Hardest, Study Says

    By Oliver Milman, The Guardian

    Australia could be on track for a temperature rise of more than 5°C by the end of the century, outstripping the rate of warming experienced by the rest of the world, unless drastic action is taken to slash greenhouse gas emissions, according to the most comprehensive analysis ever produced of the country’s future climate.

    Australia may be on track for a temperature rise of more than 5°C by the end of the century, outstripping the rate of warming experienced by the rest of the world.
    Credit: Warren/Flickr

    The national science agency CSIRO and the Bureau of Meteorology have released the projections based on 40 global climate models, producing what they said was the most robust picture yet of how Australia’s climate would change.

    The report stated there was “very high confidence” that temperatures would rise across Australia throughout the century, with the average annual temperature set to be up to 1.3°C warmer in 2030 compared with the average experienced between 1986 and 2005.

    Temperature projections for the end of the century depend on how deeply, if at all, greenhouse gas emissions are cut. The world is tracking at the higher emissions scenario, meaning a temperature increase of between 2.8°C and 5.1°C in Australia by 2090.

    According to the report, this “business-as-usual” approach to burning fossil fuels is set to cook Australia more than the rest of the world, which will average a temperature increase of 2.6°C to 4.8°C by 2090.

    Australia’s surface air temperature has already increased 0.9°C since 1910, with the number of extreme heat records outnumbering extreme cool records nearly three to one since 2001.

    Australia experienced its third-warmest year on record in 2014, with 2013 its warmest year on record. The heat experienced in 2013 was “unlikely” to have been caused by natural variability alone, the report stated, with such temperatures now five times more likely due to humans releasing greenhouse gases into the atmosphere.

    A map depicting the median projected changes in temperatures in Australia.
    Credit: CSIRO

    Other findings of the wide-ranging analysis, the first such Australian climate projection made since 2007, included:

    • The interior of Australia is set to warm more rapidly than coastal areas. Alice Springs will experience an average of 83 days a year over 40°C in 2090, up from just 17 in 1995.
    • Melbourne will swelter through an average of 24 days above 35°C by 2090, up from 11 in 1995. Sydney will experience 11 days above 35°C by 2090, an increase from three days in 1995.
    • Australia is on course for a sea level rise of 45 cm to 82 cm by 2090, if emissions are not curbed. The report warned that if the Antarctic ice sheet was to collapse, sea levels would be a further “several tenths of a meter higher by late in the century”.
    • Extreme rainfall events will increase but overall rainfall is expected to drop in southern Australia, apart from Tasmania, during the winter and spring months – by as much as 69 percent by 2090.
    • There will be more extreme droughts, with the length of droughts increasing by between 5 percent and 20 percent, depending on how quickly greenhouse gases are cut.
    • Rising temperatures will result in a “greater number of days with severe fire danger”. Meanwhile, soil moisture will fall by up to 15 percent in southern Australia in the winter months by 2090.
    • Snow cover will decline, with the report stating there was “high confidence that as warming progresses there will be very substantial decreases in snowfall, increase in melt and thus reduced snow cover.”

    These changes are likely to produce some benefits, such as enhanced agriculture in Tasmania and fewer deaths from cold weather. But they will be overshadowed by the negatives, such as rising numbers of deaths from heat waves, water resource challenges, impacts upon agriculture and risks posed to coastal infrastructure by rising seas.

    Some of the most profound transformations are set to take place in the seas that surround Australia, which will warm by a further 2°C to 4°C unless emissions are cut.

    Excess carbon dioxide absorbed by the oceans causes the water’s pH level to drop. This acidification makes it more difficult for corals to form hard reef structures and other creatures such as oysters, clams, lobsters and crabs to develop their shells.

    This phenomenon poses a major risk to ecosystems such as the Great Barrier Reef and is, according to the report, “likely to impact the entire marine ecosystem from plankton at the base to fish at the top.”

    Kevin Hennessy, a principal research scientist at the CSIRO, said it and the Bureau of Meteorology now had a greater confidence than ever in their forecasts of Australia’s climate.

    “We expect land areas to warm faster than ocean areas, and polar regions faster than the tropics,” Hennessy told Guardian Australia.

    Given Australia’s geographical position, that would mean much of the country was expected to warm faster than the global average.

    “Australia will warm faster than the rest of the world,” Hennessy said. “Warming of 4°C to 5°C would have a very significant effect: there would be increases in extremely high temperatures, much less snow, more intense rainfall, more fires and rapid sea level rises.”

    Hennessy said even the internationally agreed limit of 2°C of warming on pre-industrial times would cause severe problems for Australia.

    “That intermediate emissions scenario would have significant effects for Australia,” he said. “Coral reefs are sensitive to even small changes in ocean temperature and a 1°C rise would have severe implications for the Great Barrier Reef and Ningaloo reef.

    “The situation is looking grim for the Great Barrier Reef unless we can significantly reduce greenhouse gas emissions. A 2°C future would be very challenging.”

    Hennessy said Australia should prepare for this altered climate by ensuring hospitals, transport infrastructure, construction codes and fire planning all considered the rising temperatures.

    Cutting emissions would also help head off the worst of climate change, with nations set to convene in Paris later this year for crunch talks aimed at agreeing emissions reductions beyond 2020.

    “Achieving that intermediate, rather than higher, emissions path would require significant reductions in global greenhouse gases,” Hennessy said. “It’s difficult to say what will be achieved, there are a lot of negotiations to come in Paris. We hope there will be an agreement until 2050 at least, but who knows what will happen in the coming decades.”

    Reprinted with permission by The Guardian

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    Charlie Wood – 350.org Australia <350@350.org> Unsubscribe

    7:45 PM (1 hour ago)

    to me

    In just under 2 weeks, people everywhere will come together for Global Divestment Day. Here’s why you should REGISTER NOW to join them:

    1. Divestment is winning

    In just over 2 years, this grassroots movement that started on college campuses has the fossil fuel industry running scared. They’re spending millions trying to counter us. First they laugh at you, then they fight you, then you win. Divestment could just help buy us the time we need to sort the climate crisis once and for all.

    2. Everyone’s talking about it…

    …from the World Bank, the United Nations, Obama, Goldman Sachs, the International Montery Fund, Missy Higgins, your bank, your super fund, your next door neighbour, their kids, their friends – the list goes on.

    3. It’s more effective than burying your head in the sand on climate…

    …which is what our Government is doing.

    4. It shows solidarity

    Around the world, people are already suffering the tragic impacts of dangerous climate change. Pacific Islanders are fighting to keep their homes above water. Farmers are fighting crippling droughts. Our Asian neighbours are fighting increasingly severe and frequent extreme weather events. Divestment is a way for us to stand with these communities and show we wont sit idly by as the fossil fuel industry wrecks their homes, livelihoods and cultures.

    5. Anyone can do it

    We’re all unwittingly supporting the fossil fuel industry – whether it’s via our super, bank or other institutions we’re connected to – each of us can divest and play a powerful role in unlocking the climate deadlock.

    6. It’ll be fun

    Here in Australia, there’ll be performances by Cat Empire’s Felix Riebl, thousand-person fossil fuel break-up rallies, human carbon bubbles, mock drill rig installations and giant human signs. Overseas, there’ll be everything from umbrella parties in the Himalayas, mobilisations in the financial districts of New York and London and creative actions in Burkina Faso.

    7. It’s one of the best chances we’ve got

    The fossil fuel industry has corrupted our political processes, degraded our land and water, divided local communities and now it’s radically altering the atmosphere and the world as we know it. As leaders meet in Paris at the end of 2015, we know they won’t act in accordance with the urgency of the crisis so long as the fossil fuel industry’s power goes unchecked. Divestment can take back this power and speed up the transition to a cleaner, brighter, better future for all.

    So we’ll be seeing you at Global Divestment Day right?

    CLICK HERE TO REGISTER TODAY.