Climate and finance

 

Climate risks are financial risks. The Paris Climate Agreement means ‘business as usual’ is no longer an option. Australian regulators have confirmed climate change is a financial risk. Barristers’ advice puts directors on notice for not considering the risks. Government officials must act with care and diligence. These are the new realities for investors and financiers.

But climate change risks are not being taken seriously. That’s where we step in.

EJA exposed serious flaws in plans for a government subsidy to support Adani’s Carmichael project – a proposal for the world’s largest new coal mine. The Northern Australia Infrastructure Facility (NAIF) considered lending $1 billion in taxpayers’ money to a coal railway to service Adani’s mine. EJA exposed NAIF board members’ conflicts of interest, raised serious questions about NAIF’s Risk Appetite Statement and its Anti-Money Laundering policy and advised that NAIF’s officials would breach their duties if the loan proceeds.

EJA’s research has revealed the legal framework governing the operation of Australia’s Export Finance and Insurance Corporation (EFIC) contains Constitutional, political and legal roadblocks that would preclude loans and payments for projects like Adani’s Carmichael coal mine. Read our report and analysis.

EJA is the only legal practice in the world to file court proceedings against a bank over climate risk disclosure. In July 2017 we lodged the case in the Federal Court of Australia against the largest public company in Australia, the Commonwealth Bank. The case was brought by long-term shareholders alleging the bank failed to adequately disclose climate related risks in its annual report.

A report by EJA, Fracking the Northern Territory, examined the NT Government’s recent decision to lift its popular moratorium on hydraulic fracturing following a scientific inquiry into the impacts of fracking. In July 2018 EJA, on behalf of the Institute for Energy Economics and Financial Analysis (IEEFA), has requested that the Australian Energy Market Commission (AEMC) remove an exemption that allows Jemena’s Northern Gas Pipeline to not comply with National Gas Rules. The exemption means consumers could be out of pocket more than $2.5 billion over 15 years when buying fracked Northern Territory gas funnelled through Jemena’s pipeline.

World first legal action to test trustee duties on climate risks filed against A$50 billion fund

October 3, 2018

A 23-year-old is taking a $50bn super fund to court over climate change

July 25, 2018

Double standards on climate risks – Government protects big investors but not taxpayers

July 23, 2018

EJA files complaint with Ombudsman about EFIC

July 6, 2018

EFIC fail: support for Adani opens legal and political risks

June 8, 2018

Fracking the Northern Territory

May 25, 2018

Onslow Beach by Stu Rapley

NAIF: Any port in a storm

February 1, 2018

NAIF prepared to do risky business

September 4, 2017

Body considering Adani loan has loose governing framework

August 28, 2017

Climate and finance: news and media

September 20, 2018

Response to ASIC report on climate risk disclosure

August 13, 2018

Pension funds warned of legal action over climate risk (Financial Times)

August 8, 2018

Great Barrier Reef grant decision broke govt’s own rules, environmental lawyers say (ABC)

July 30, 2018

Submission on ASX Corporate Governance

July 27, 2018

Submission to Australian Law Reform Commission inquiry

July 26, 2018

Jemena’s $2.5 billion fracking gouge challenged by lawyers and analysts