A major Chinese bank has knocked back funding for the controversial Carmichael coal mine project.
In a statement, the Industrial & Commercial Bank of China (ICBC) insists it has no intention of backing Adani’s proposed coal mine in Queensland.
Instead, the bank makes it clear that renewable energy funding is its top priority.
ICBC points to a range of clean energy projects it has financed in Australia. It is keen to promote green loans and meet its ‘social responsibilities’.
As reported by the ABC, the China Construction Bank has also ruled out any involvement with the Adani-Carmichael mine project.
Another blow for beleaguered Carmichael coal mine
Chinese banks remained a last chance for the struggling Adani project, with Australian banks already saying no to finance.
Rejection of funding by these two significant Chinese banks is another nail in the coffin for Carmichael.
Adani has already pushed back the mine’s starting date several times. The mine is generally seen as being financially unviable.
Christiana Figueres, former head of the United Nations Framework Convention on Climate Change, said last month that funding the mine would be a financial disaster.
She told the ABC it would be like “throwing $900 million down the drain”.
Australia a global leader in coal finance
In addition, a new report places Australia in the top five potential financers of future coal projects.
‘Power Shift’ compares the financing of coal projects and international renewable energy projects by G20 governments.
The Natural Resources Defence Council study rates the leading potential financers of upcoming coal projects abroad:
- China ($13 billion USD)
- Japan ($9 billion USD)
- South Korea ($3 billion USD)
- India ($1 billion USD)
- Australia ($1 billion USD).
Germany, the US, Italy, and Russia are also mentioned as possible financers of coal projects.
The report notes that clean energy like solar panels is not only competitive with coal power but increasingly cheaper.