A contractor at a controversial coal mine in Australia has said he has not secured insurance for the project due to environmental concerns, stressing how the country’s fuel funding has dried up.
The BMD Group, which works at the Carmichael mine at Adani Enterprises, said appeal In the parliamentary inquiry, he will have to ask the government for insurance.
BMD’s claim was filed among more than a dozen submitted by companies warning that the company’s suspension of funding for the sector due to environmental, social and governance concerns would jeopardize the destruction of the thermal coal export industry by $ 20 billion ($ 15.5 billion) a year.
A section of BMD a is under construction railway At Carmichael, which annually inspired the 10 m-ton thermal coal project worldwide climate protests. At least 33 insurers refused BMD for the project because of a civil liability insurance for the project because it was related to Adani.
According to the BMD, customers will have to absorb risks on behalf of contractors if they are unable to obtain insurance or the government should provide insurance from public funds.
“Failure to take any action can only result in a few contractors being able or willing to perform these critical infrastructure works,” the group said.
The BMD told the survey that it has been exposed to activism by climate change protesters and anti-coalition groups, including threats of violence against group owners and families.
The financial sector’s investigation into the treatment of export industries has been carried out by Keith Pit, the minister for resources, after he accused banks and pension funds of “corporate activism”.
“That’s precisely why I asked for this questionnaire and I expect the result,” Pitt said of the BMD presentation. “How is it possible to deny insurance to the company that was building the railroad that could transport cattle, grain, people or anything else because it carries coal. The moving product has no effect on the risk of construction.”
Adani, owned by the Indian magnate Gautam adani, the survey said banks and insurers were settled completely withdraw from the coal By 2030, which would have a “dramatic and detrimental impact” on the industry.
Adani told the Financial Times that Carmichael had the necessary insurance for the entire project.
The New Hope Group coal company said the effects of financial companies withdrawing from the sector would be “dire”.
The Appea group, which represents the oil and gas industry, said banks and pension funds are increasingly telling companies that they cannot invest in projects because of ESG concerns. But the “positive role that oil or gas can play in providing energy security in the global decarbonizing economy” is not often considered, he argued in a presentation.
The Australian Insurance Council told the survey that its members have acknowledged the importance of the country’s export industries and noted the moves made by investors and regulators to respond to the risks posed by climate change.
“The general insurance industry will continue to support and assist the effective risk management of Australian exporters… In line with a contemporary understanding of regulatory guidance and legal obligations,” the council said.
BMD did not respond to a request for comment on the insurance situation.
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