The world is facing a coal ‘Kodak moment’ as renewables blow fossil fuels away, a global climate change expert says. She also points out the risk Australian faces from embracing the Adani coal mine development.
Christiana Figueres, former head of the United Nations Framework Convention on Climate Change, talked to ABC Radio about her concerns.
She likened the wave of renewable energy to the digital disruption that destroyed photography giant Kodak in the late 20th century.
Furthermore, Australia’s planned funding of Adani’s Carmichael coal mine in Queensland could be a financial disaster, according to the former UN chief.
According to Ms Figueres, offering Adani a subsidised loan is like “throwing $900 million down the drain”.
Adani coal mine project ‘a financial house of cards’
Any investment in the project could make the mine a stranded asset, Ms Figueres says.
“Anyone putting money into any part of this supply chain . . . should not be surprised if they find themselves in a total financial debacle.”
She calls the project a “financial house of cards” due to huge debt levels at the Adani mine and port. Meanwhile, the Indian power plant meant to use the coal was so nonviable it was put up for sale for one rupee.
A loan would also call into question Australia’s reputation, international standing and its relationships with Pacific neighbours.
Meanwhile, the falling cost of clean energy like solar panels and solar storage batteries is making coal uncompetitive.
Australian Government ignoring coal ‘Kodak moment’
Ms Figueres says the Australian Federal Government’s support for coal is undermining global efforts to reduce carbon emissions.
She said the Carmichael coal mine would “blow completely out of the water” any emissions reductions Australia signed up to.
The planned mega-mine in Queensland is “baffling” to the woman who led the historic Paris climate talks in 2015.
“Twenty-five countries came together last week, all moving out of coal in the short term,” Ms Figueres says.
Even India, who didn’t attend this month’s climate talks in Bonn, will reach peak coal consumption in 2027. This means India won’t need coal from Adani, she says.
Voters in the Queensland election appeared to reject the Adani loan, with the LNP suffering a big swing against it and the ALP losing ground to the Greens.
