A RAPID global transition away from coal and mounting evidence that
development of Galilee coal would lock the world into a future of dangerous
climate change is increasing the likelihood the proposed mine will never go
ahead, a new Climate Council report has revealed.
Export markets for Galilee coal are dwindling fast, with only India
remaining a possibility and it is wavering in its commitment to importing coal,
the ‘Galilee Basin – Unburnable Coal’ report found.
The financial sector was rapidly coming to grips with the potential of
the Galilee Basin’s vast fossil fuel reserves to permanently alter the climate
and the investment risks associated with coal, The Climate Council’s Tim
Flannery said.
“Galilee Basin
coal would emit more than Australia’s entire emissions each year,” he said.
“With the global
trend away from coal gathering momentum, the implications for Australia’s
thermal coal export industry are unmistakeable and the industry’s future looks
increasingly shaky.”
The report revealed:
- Coal use in China, the world’s
biggest coal market by far, dropped 3% in 2014 and is predicted to drop another
2.5% in 2015. China is attracting more renewable energy investment than any
other country in the world and recently announced it would cut coal consumption
by 80 million tonnes by 2017 and by a total of 160 million tonnes between 2014
and 2020. - There are increasing signs from global investors that they consider
Galilee coal too risky an investment. A
total of 11 international banks have now publicly announced that they will not
be involved with any projects in the Basin. - Global investment in renewables capacity has increased five-fold
over the last decade and is now greater than investment in fossil fuels - Over 100 coal fire power stations have closed in the last
decade in the USA
Climate Council councillor Professor Will
Steffen said over 90% of Australia’s known, extractable coal in existing
reserves must stay in the ground in order to effectively tackle climate change.
“Therefore, the most pressing challenge
Australia faces is how to phase out coal mines well before their reserves are
exploited and new mines cannot be built,” he said.
“The odds are increasingly stacked against
the development of re are two undeniable trends occurring globally. Uptake of
renewable energy is accelerating and coal-fired power plants are increasingly
closing.”
“For Australia to fight these trends is
economically, socially and environmentally unwise.
“Rather, we need to be preparing for – and
indeed joining and facilitating – this transition to a clean energy world.”
The
Climate Council is an independent, crowd-funded organisation providing quality
information to climate change to the Australian public.
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Odds Stacked Against Development Of Galilee Coal – New Report.pdf