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London Stock Exchange – occupied by coal

Richard — Tue, 24 Jan 2012 18:59:01 +0000

New analysis from Carbon Tracker shows how the growing number of coal mining companies listing in London exposes the financial market to a significant systemic risk. Investors tracking the FTSE AllShare Index are facing increasing efforts across the world to regulate the carbon dioxide (CO2) emissions from coal-fired power generation, most recently in Australia. Carbon Tracker estimates that coal reserves equivalent to 44.56 GtCO2 are held by companies listed on the London Stock Exchange. This is equivalent to 400 years of emissions from coal power stations in the UK, which currently stand at around 0.1Gt CO2 per annum.

See http://www.carbontracker.org/coalcapital.

Read the report at http://www.carbontracker.org/wp-content/uploads/downloads/2012/01/CoalCapitalbriefingJan12.pdf.

A third of coal listed in the UK is actually located in Australia, where the government has recently agreed to deliver a carbon tax and emissions trading scheme. So “UK” investors are potentially exposed to climate change regulatory risk in Australia. However, Australia and Indonesia export around three-quarters of their coal production. So, in fact, around half of the coal owned by UK-listed companies is supplying developing economies in China, Russia, India and South Africa. Many asset owners and fund managers representing $20trillion of capital reiterated their call for the Durban climate negotiations at the end of November to deliver a 2°C policy framework. Now is the time for them to also ask financial regulators to deliver a 2°C capital market system. The FSA needs to address the systemic risks of reserves concentrating on the London Stock Exchange and monitor the levels of fossil fuels listed in London. Asset owners investing in the UK market should request that the FSA introduces limits to the levels of overseas fossil fuel reserves. Accountants and analysts should review which reserves are lower quality due to risk of climate regulation, and climate change, and discount their value accordingly.

Fossil fuels are sub-prime assets, Bank of England governor warned

An open letter to Sir Mervyn King says overexposure to high-carbon assets by London-listed companies risks creating a ‘carbon bubble’.

See http://www.guardian.co.uk/environment/2012/jan/19/fossil-fuels-sub-prime-mervyn-king?INTCMP=SRCH.

Read the letter at http://www.carbontracker.org/linkfileshare/Letter-to-Bank-of-England-Financial-Policy-Committee-19th-January-2012-Final.pdf.

Is Europe’s carbon trading scheme merely hot air?

Richard — Wed, 28 Dec 2011 16:22:52 +0000

Using “the market” as a means to absolutely reduce global greenhouse gas emissions has long been criticised as “pie in the sky” (and not a particularly clean pie at that). Now, in order to “prop up” carbon prices under the EU Emissions Trading Scheme (ETS), the European Parliament will auction some emissions permits which were earlier planned to be given away for free to carbon-intensive industries (notably power plants and steel producers).

On the face of it, this is a positive move and might lead to a more realistic pricing of the costs of continuing to pollute. But there’s plenty of scepticism about the proposal.

Some investors and environmental groups claim that plans to increase energy efficiency in Europe would reduce demand for emissions permits and thus lower their price. That would potentially undermine the “logic” behind the scheme.

But then that’s “the market” for you!

See http://www.minesandcommunities.org/article.php?a=11391.

Cheap and green energy for miners

Richard — Sat, 17 Dec 2011 15:18:38 +0000

It may seem somewhat audacious for a company with a market value of $16 million to propose a world-leading energy project nearly one hundred times its value. But, says Petratherm managing director Terry Kallis, if you don’t dream, you don’t get. And he just happens to think he’s sitting on a unique opportunity.

Kallis outlined his vision for a $1.5 billion clean energy precinct in the outback of South Australia that would take advantage of the unique combination of geothermal, solar and wind energy resources, the intersection of major gas pipelines, and the proximity of the world’s largest mine and other major developments.

The big opportunity is, of course, to service the massive energy demands of BHP Billiton’s proposed Olympic Dam expansion – which could be more than 700MW at that site alone – as well as other mine proposals or expansions.

See http://www.climatespectator.com.au/commentary/cheap-and-green-energy-miners.

(The Olympic Dam mine is, of course, anything but clean – see http://www.foe.org.au/anti-nuclear/issues/oz/u/roxby/BHP%20Alt%20AR%202011%20-%20Dirty%20Energy.pdf.)

Who needs coal? Who needs nuclear?

Richard — Sat, 17 Dec 2011 15:15:38 +0000

It seems to be a “Hobson’s choice” par excellence! As global climate change talks continued in Durban, South Africa’s leadership was faced with a “conundrum” – does the country continue burning-up the world by depending on coal, or should it risk radiating it with nuclear power? Of course this “dilemma” confronts many other industrialised and “lesser developing” states too. But it’s arguably completely false. In a startling analysis, Australian climate change reporter, Giles Parkinson, contends that “alternative” energy sources, such as solar and wind power, have the potential to outstrip coal as a key source of electrical power. Indeed, says Parkinson, this is already happening.

See http://www.minesandcommunities.org/article.php?a=11348

UK secretly helping Canada push its oil sands project

Richard — Sat, 03 Dec 2011 09:26:32 +0000

The UK government has been giving secret support at the very highest levels to Canada’s campaign against European penalties on its highly polluting tar sands fuel, the Guardian can reveal.

At the same time, the UK government was being lobbied by Shell and BP, which both have major tar sands projects in Alberta, and opened a new consulate in the province to “support British commercial interests”.

See http://www.guardian.co.uk/environment/2011/nov/27/canada-oil-sands-uk-backing

Mining companies hold back progress on climate change

Richard — Sat, 03 Dec 2011 09:24:52 +0000

The world’s biggest steel producer, ArcelorMittal, and global miner, BHP Billiton, are among companies “block[ing] progress on climate legislation”, while they “ensure that fossil fuel and nuclear subsidies continue to give unfair advantage to dirty energy”.

So says Greenpeace in a new report, released just prior to the climate change conference being held in Durban this week.

See http://www.minesandcommunities.org/article.php?a=11329&l=1

Coal study names top 20 ‘climate killer’ banks

Richard — Sat, 03 Dec 2011 09:23:46 +0000

Barclays, the Royal Bank of Scotland and HSBC are among the top banks that have lent billions of euros to the coal sector – despite their much-vaunted environmental credentials, a new investigation has found.

See http://www.guardian.co.uk/environment/2011/nov/30/coal-banks.

Report available at http://www.banktrack.org/download/bankrolling_climate_change/climatekillerbanks_final_0.pdf.

New reports question World Bank’s coal investments

Richard — Sat, 03 Dec 2011 09:22:08 +0000

As the climate talks in South Africa approached, the World Bank continued to be overshadowed by past and prospective loans for fossil-fuel power plants.

See
http://www.minesandcommunities.org/article.php?a=11332&l=1

BHP Billiton – Dirty Energy

Richard — Wed, 16 Nov 2011 14:12:51 +0000

BHP Billiton holds its Australian AGM on Thursday 17 November. A coalition of organisations including London Mining Network has produced an ‘alternative annual report’: BHP Billiton – Dirty Energy.

To read the alternative report, see http://bhpbillitonwatch.files.wordpress.com/2011/11/bhpb_report_sml.pdf.

Climate Vulnerable Forum Declaration adopted

Richard — Tue, 15 Nov 2011 17:14:27 +0000

Nineteen climate vulnerable countries have signed the Climate Vulnerable Forum 2011 Dhaka Declaration: Afghanistan, Bangladesh, Bhutan, Costa Rica, Ethiopia, Ghana, Kenya, Kiribati, Madagascar, Maldives, Nepal, Philippines, Rwanda, Saint Lucia, Tanzania, Timor-Leste, Tuvalu, Vanuatu and Vietnam.

Among other things, signatories declare:

1. We underscore that it is incumbent upon the developed countries, given their historical responsibility to climate change and taking into account their commitments to reduce our vulnerability, to extend all necessary support to our vulnerable countries so as to be able to respond to the challenges posed by climate change….

3. We, as vulnerable countries, resolve to demonstrate moral leadership by committing to a low-carbon development path on a voluntary basis within the limitations of our respective capabilities, which are to a large extent externally determined by the availability of appropriate financial and technological support, and call on all other nations to follow this moral leadership.

It is unclear what effect this declaration will have on the Bangladesh Government’s approach to London-listed GCM Resources‘ proposed open cast coal mine at Phulbari in the north west of the country, or on GCM Resources’ seeming determination to push the project through.

GCM resources holds its AGM in London on 15 December.

See http://daraint.org/2011/11/14/2748/climate-vulnerable-forum-declaration-adopted/.

Australia Passes Landmark Carbon Price Laws

Richard — Tue, 15 Nov 2011 17:07:48 +0000

Australia passed landmark laws last week to impose a price on carbon emissions in one of the biggest economic reforms in a decade and injecting new impetus into December’s global climate talks in South Africa.

Among London-listed mining companies affected are Anglo American, BHP Billiton, Rio Tinto and Xstrata.

See http://www.reuters.com/article/2011/11/08/us-australia-carbon-idUSTRE7A60PO20111108.

Anglo American may pull investments, jobs

Richard — Thu, 10 Nov 2011 16:01:31 +0000

In a move intended to pressure the Australian federal government to revise the proposed carbon tax, global miner Anglo American has threatened to withhold over $15 billion in coal mining investments and curtail 3,200 new jobs in Australia, according to a report by the Australian Financial Review.

See http://www.businessspectator.com.au/bs.nsf/Article/Anglo-American-may-pull-investments-jobs-pd20111101-N7Q4J?opendocument&src=rss.

Australian coal blasting stopped until risk ‘acceptable’

Richard — Wed, 26 Oct 2011 12:36:06 +0000

The Queensland government in Australia has suspended blasting operations at a coal mine accused of having caused toxic gases to fall on a residential neighbourhood. Not only do these gases pose major health threats to communities living close to mines, nitrous oxides (NOx) are the fourth largest contributor to greenhouse gas emissions, as well as being responsible for the formation of acid rain. One of the companies whose operations are affected is Anglo American.

See http://www.minesandcommunities.org/11264.

Australia passes its carbon act

Richard — Wed, 26 Oct 2011 12:32:26 +0000

The Australian government hast passed its “carbon tax” legislation, marking the first time that a major industrialised state has attempted to price, and place a cap on, its greenhouse gas emissions. Acrimonious debate around the proposal had evoked the often-irrational fears, both of the rightwing opposition and some business and mining representatives, that the country is now headed for economic dissolution, if not bankruptcy.

Among the companies mining coal in Australia are Anglo American, BHP Billiton, Rio Tinto and Xstrata.

See http://www.minesandcommunities.org/article.php?a=11243.

Ecocide trial in London

Richard — Sat, 08 Oct 2011 10:00:23 +0000

Last week an ‘ecocide trial’ was held in London. The trial tested barrister Polly Higgins’ proposal for a crime of Ecocide – to hold to account directors of companies (rather than the company) who cause extensive damage to ecosystems to such an extent that the peaceful enjoyment of the inhabitants (humans and biodiversity) of the territory have been severely diminished.

Carine Nadal of the Gaia Foundation offers some reflections on the trial.

Ecocide could become a 5th crime against peace on a par with genocide of humans. It would be a universal crime which could be tried anywhere, and one of strict liability. Intention to cause damage would be irrelevant, Ecocide is a crime of consequence – the fact of causing extensive damage would be enough. Ecocide would also impose superior responsibility – so directors of companies would be held accountable.

Polly is calling on the United Nations to adopt this proposal as early as 2012. What is needed is an amendment to the Rome Statute by a 2/3rd majority (86 States). For more information see http://www.thisisecocide.com

The Hamilton group and other organisations organised this inspiring and mobilising event. For more information about the event see: http://www.thehamiltongroup.org.uk/common/ecocide.asp

Thanks Polly, Simon and all involved for this important contribution towards Thomas Berry’s call to transform our laws (and governance systems) from human to Earth-centred, for the health and integrity of the whole Earth Community.

The trial revealed the following:

Urgent need for a crime of Ecocide to hold accountable companies destroying Earth

If companies engage in potentially damaging activities, then the responsibility and onus is on them to prevent damage. Where damage does occur companies should do all they can to mitigate and redress the harm done to all species. Polly argues that a crime of Ecocide would bring about a shift in consciousness. Polly sees the potential for companies to change and do good for the public benefit. The trial did highlight the importance of how we define Ecocide and how companies could get round it by showing a lack of evidence that they caused the damage. Thanks to the mock trial, Polly will be re-drafting the proposed Ecocide crime to tighten any loopholes.

A precautionary approach is needed

If scientific evidence that damage will occur is lacking, this should mean we take preventative action, rather than going ahead with potentially damaging activities. An emerging challenge is fracking e.g. in Nigeria. Nnimmo Bassey (Head of Friends of the Earth International and winner of the 2010 Right Livelihood Award) and others are campaigning for ‘leaving oil in the soil, coal in the hole and tar sands in the land’. (On 26th September, Nnimmo gave a talk at the Gaia Foundation Learning Centre about ‘Justice for the Earth Community: Defending the Rights of Nature and holding Corporations to Account’, and shared stories of oil spills in Nigeria and the Gulf of Mexico. A transcript and podcast of the Gaia evening will be available soon.)

Lawyers and legal system need to become eco-literate

The limitations of the current legal system were clear. Law tends to take a narrow, reductionist snap-shot rather than a holistic, interconnected and long-term approach. Law requires proof of causation – evidence that the person caused the damage. For example the defence argued that the charge of Ecocide in this instance would be the death of birds landing on the toxic Tar Sands ‘ponds’ – not the death of birds and other species caused by the leaching of the toxic water into surrounding ecosystems or the wider destruction of their forest habitat to make way for Tar Sands development . There is no account of the interconnectedness of life or future generations.

To ensure justice for the whole Earth Community – lawyers should learn how our Earth functions and become eco-literate in reading Earth’s laws, limits and processes. Ecology is not/rarely an option in legal education. In the meantime, there should be more dialogues and collaboration between eco-literate communities, Gaia scientists and resilience practitioners so that legal arguments are based on reality and laws of the Earth.

Urgent need to recognise the rights of Nature

Earth has no/ a small voice in the court room. Currently there are few representatives or guardians of Earth to voice the interests of Earth in court. Decisions affecting the Earth Community are made remotely in a court room, miles away from the destruction. it also became clear that recognising a crime of Ecocide is not enough. If a company director were not found guilty of Ecocide and destruction of ecosystems then potentially there would be no justice for Earth and her communities. We also need to recognise the inherent rights of Nature, enforceable by communities and guardians in court e.g. Ecuadorian Constitution. The crime of Ecocide and rights of Nature are complementary.

Sign the petition to call on your Government to endorse the Universal Declaration of Rights of Mother Earth.
http://www.rightsofmotherearth.com/ We need 1 million signatures by Rio +20, June 2012.

We are all complicit in consuming oil, which has devastating impacts

The defence argued that the company director was being used as a ‘scapegoat’ for the sins of society. There was recognition during the event that we are all complicit in depending on oil for food and most activities. We have a responsibility to stop consumption and shift towards less destructive forms of energy. Michael Mansfield QC (lawyer for the prosecution) highlighted that ‘we are all trustees of the planet’ ‘We need to say I played my part and responsibility.’

There is a growing social movement for justice for the Earth Community

As Gandhi said we need to be the change we want to see in the world. There are inspiring and positive actions around the world e.g. practices of the African Biodiversity Network (http://www.africanbiodiversity.org) and Community Ecological Global Alliances. We need to unite in solidarity and advocate for the rights of Nature and uphold our responsibilities of trusteeship to the present and future generations of the whole Earth Community.

You can also join the Global Alliance for Rights of Nature.
http://therightsofnature.org/ There are almost 1000 signatures from around the world. Do sign up! Especially to the working groups e.g. ancestral wisdom.

See the six-minute ‘trailer’ video at http://www.thehamiltongroup.org.uk/common/ecocide.asp