World Bank Accused of Secretly Supporting Adani’s Carmichael Coal Mine

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Guest essay by Eric Worrall

The World Bank has been accused of secretly funding a massive new Indian backed Queensland coal mine. But the back story behind this strange development goes far deeper – it began with a brutal attempt by President Obama to use US influence to defund fossil fuel resource development in poor countries.

Adani coalmine ‘covertly funded’ by World Bank, says report

The bank’s private sector arm is accused of subsidising loans that funded the Indian firm’s Queensland exploration bid.

Adani’s Carmichael mine has been “covertly funded” by the World Bank through a private arm that is supposed to back “sustainable development”, according to a US-based human rights organisation.

Adani Enterprises acquired exploration rights for Australia’s largest proposed coalmine in 2010 with a US$250m loan from banks including India’s ICICI, which was in turn bankrolled by the World Bank’s private sector arm, the International Finance Corporation, a report by Inclusive Development International says.

The report accuses the World Bank of using “back channels” to conceal its support for a company that “would have little chance of receiving direct assistance from the IFC”, which has a “mandate for sustainable development”.

ICICI was among six Indian banks that received US$520m from the IFC between 2005 and 2014.

This means the World Bank has exposure to the contentious Carmichael project, from which a growing number of Australian and overseas banks are shying away.

Read more: https://www.theguardian.com/environment/2016/dec/22/adani-coalmine-covertly-funded-by-world-bank-says-report

The referenced report is available here.

Back in April 2015, WUWT reported how an attempt by the Obama administration to push the World Bank into choking off finance for coal projects in the third world had backfired. China stepped into the breach, and used its enormous state resources to create a new bank, to provide the fossil fuel finance the Obama influenced World bank was no longer willing to provide, effectively sidelining the renewables obsessed world bank into international irrelevance.

Japan joined the coal rush, offering Japanese financial services as an alternative to the new Chinese Infrastructure Investment Bank. Japan added to the humour of the situation, by demanded the UN classify the Japanese financial offering as “climate finance”, on the grounds that Japan were financing supercritical coal plants. Japan wanted recognition for the difference between the reduced CO2 output of their supercritical plants, and the CO2 a traditional coal plant emits.

The sidelining of the World Bank was a catastrophic blow to President Obama’s attempts to influence international energy development, and a substantial loss of US influence and prestige on the world stage.

If these new accusations are true, if the World Bank did knowingly secretly finance the Carmichael Coal Project, my interpretation is that the World Bank has quietly ditched its alleged commitment to defund fossil fuel projects, and is now fighting for survival, secretly funding coal projects in an effort to claw back market share and international relevance from their upstart Japanese and Chinese rivals.

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51 thoughts on “World Bank Accused of Secretly Supporting Adani’s Carmichael Coal Mine

  1. Lying has repercussions; in this case lying about CO2 generation being a problem, which it clearly is not.

  2. This would be a two-fer for Obama. He further diminishes the US on the international stage, and heightens his stature with the enviro-wackos.

  3. Sounds like the World Bank is doing a lot of coke lately.

    ….You do understand that was a pun?

    Merry Christmas.

  4. Remember when Soros “took down the British Pound”? Am I the only one who sees this anti coal heist, as driving down the price so they can be snapped up “cheap”, knowing that the world will wake up and realize that coal has a big part to play, once the “glow bull warming” hoax is done and gone?

    • C. Earl, been saying that for years, ha has already done this in the USA. Him Buffet et al drove coal out bought up companies dirt cheap and promptly started selling to China.

    • Same goes for waterfront property and “sea level rise”. Publish scare stories in the press, drive down prices, and buy it up cheap.

      • I hear that Peabody has just filed a reorganisation plan in which shareholders get nothing. (NB. Don’t rely on this – check it!). The word is that it looks like they have seriously undervalued the business (factor of ~3) by presumably using out-of-date coal prices. The end result is that certain hedge funds will have stolen acquired Peabody’s very valuable coal assets from shareholders. Expect a court battle, but the hedge funds probably hold most aces. George Soros may very well have done OK from his Peabody shares, though, because the price is still way up on when he bought in.
        http://finance.yahoo.com/quote/btuuq?ltr=1

    • I also have seen that. It’s the only way to put the puzzle together in a way that makes sense of all the parts.

    • This is an excellent example of crony capitalism, which is conflated with capitalism in political and educational circles (with some exceptions for economics and business classes). They are different. Crony capitalism is when the government steps in with laws, regulations, and/or insider information to hand big opportunities to a chosen few. The government is not present in capitalism except to maintain a level playing field.

    • Yep. It was pretty obvious I thought. Of course the MSM doesn’t talk about it since Soros owns most of it. You notice that when Peabody rolled over, there wasn’t any chance for individual investors to go in, everything was done in backrooms. What a deal.

  5. This shows what a farce the whole CAGW meme has become. China, Japan and even the World Bank are undermining the UN push for globalization. The UN/Obama/Soros+ cartel appear to be fighting a losing battle. Now if we can only convince PE Trump to straight out dump the Paris/UN/globalist scheme, it could fall apart quickly. Anyone listening in the Trump camp? The world is starting to demand that “economic sustainability” be considered equally important to environmental sustainability. One trick ponies tend to have short lifespans.

    • “economic sustainability”

      The KookyKlimateKult shrieks on about their religion while the real boogeymen, automation and offshoring, continue deleting middle class brainwork jobs in the west.

    • The honest truth, one no enviro-nut wants to talk about, is there’s no such thing as “sustainable” energy. Even the sun will burn out someday and it has an annoying habit of showing us all what that would be like every day, regular as clockwork.

  6. Calm down. This is just anti-globalisation rubbish from the Guardian. When the IFC makes, they are for specific activities, not general funds. By adding up a whole lot of loan to six Indian banks, the journalist has managed to get to a figure of $520 million over a 10 year period. Big whoop. No numbers on how much went to each bank or when during the period the loans were made or what the loans were for

    Sometime during this period, one of the six banks was part of a consortium which made a loan of $250m to build a coal mine in Australia (which has probably mad them a decent profit). Once again, no numbers on how much the Indian bank’s share of the loan was.

    From this, the journalist screams about back-door funding of coal plants by the World Bank (whose mandate they confuse with the IFC – which actually has a different role, but don’t let the truth stand in the way of a good smear).

    This is typical Guardian trash – I wouldn’t normally dignify such reporting with a comment, but it seems as though – drawing an equally long bow – people here are seeing this as a slap in the face for Obama who was trying to have the World Bank get out of fossil fuels.

    Well, hate to tell you, but the WB has been doing this for far longer than the Obama administration. The antipathy for fossil-fuel projects goes back to the (virtual) take-over of the bank by environmental concerns – often to the detriment to the Bank’s stated mission of development. Furthermore, the actual date of the loan (2010) make it hardly likely that anything Obama had done affected this commercial decision.

    The World Bank needs to take a long hard look at its mandate and get back into development first other considerations second, but the direction of the Bank is driven by a multitude of Western countries, not just the US. Of course Obama bought into this, but he is a late-comer to this party and the music was already chosen by the Europeans and the Japanese.

  7. The World Bank is yet another casualty of Obama policy fail with very little press scrutiny as usual.

  8. … the World Bank … in an effort to claw back market share and international relevance from their upstart Japanese and Chinese rivals.

    I thought the World Bank wasn’t in competition with anybody. I thought it was an international agency intended to foster development. link

    • Dream big, CommieBob! Lending billions to third world dictators for strategic influence is a dirtier business than you might assume!

    • But only in his own mind and the minds of his useful-idiot supporters. No one else is being fooled by his legacy of failure, good intentions or not. “Obama’s Road” was build on shifting sand and is already falling apart. It will have to be completely ripped out and properly rebuild by the next President.

  9. Eric,

    My thanks to you for using “poor countries” at the end of your first pargraph (instead of the dreaded … “third world” expression). Many thanks indeed.

    Thank you also for putting out your excellent reports and knowledge: all of ’em are appreciated.

    I only hope that Mr. Trump and Senator Roberts also keep tabs on these reports: I’m pretty sure their secretaries will compend them.

    Regards,
    WL

  10. The Obama administration doing anything, anything at all, to cause a “substantial loss of US influence and prestige on the world stage.”

    Perish the thought.

    The healer of the planet?
    The tamer of the rise-eth of the oceans?
    The Lightwalker?
    The Nobel Prize winner?
    The firsteth time bringer of pride in America to Michelleth?
    The Scholar?
    The Bringer of a Thrilleth up the leg of the eminently eminent Chris Matthews?

    Causing a loss in US influence and prestige?

  11. Ecofascism in all its forms has devastated free enterprise and the industriousness of the West… The sooner these political vandals are exposed as unreasonable fanatics and expunged from the debate, the sooner everyone can get back to pursuing their own dreams and enterprises without the vexatious regulations and political interference of the ecofascists.

    Heck, scientists might even get to start doing science as per the scientific method instead of consensus propaganda for funding that follows a political narrative with an activist agenda.

    • “Ecofascism in all its forms has devastated free enterprise and the industriousness of the West”

      Ecofascism? Devastated free enterprise? LMFAO What a strange set of corrupted mirrors and lens you must see the world through. Probably need to go back and find out what fascism is and where it comes from.

      • One doesn’t need micromanagement from various incompetent place (job) holders to have a clean project. In fact, almost always various politics, regs and regulators are the major problem to doing an outstandingly clean project.

  12. Not sure about the World Bank making loans but certainly the Australian Federal govn’t is going to loan the company AU$1billion for this project. Problem is questions are being raised about Adani’s corporate status. You will find the registered offices will be in tax havens, so the company will dig and export coal to India for next to nothing, pay little or no tax, make billions selling coal, all the while the Australian taxpayer subsidizes the whole operation.

      • Australia has known reserves of coal that will last ~500 years at current extraction rates. We won’t run out of coal any time soon and certain not before we discover/invent other reliable sources of energy.

    • Another green troll. Any mine in Queensland will pay royalties on every tonne of coal extracted before it is sold. Qld government has always extracted a good margin on rail freight and on port costs. Companies pay payroll tax on all employees. They pay council rates, and are required to subsidies infrastructure such as schools and hospitals. This all comes before a company makes any profit or loss. If they make a profit they pay income tax. If they continue to make a loss then they will go bankrupt and some one can buy the assets at a reduced price. Ask the many Japanese companies that went bust in the 1990’s. USA is even more known for a difficult place to invest -look at the many overseas companies that have “burnt their fingers”

  13. Trump, president in the USA; Roberts, PM for Australia; Monckton for PM in Britain. I live on the Gold Coast now but before in Townsville, not far from Abbott Point where this mine will ship from; and both places have a problem with few jobs available. I am a studying civil engineering, as part of a unit called project management, I have devised a coal ship loading method using gravity which is up to 40 times more efficient than current methods and practically eliminates all negative impacts from coal dust. This plant can also be moved to another location after this mine is finished by flotation. I would hope to see a plant like this in operation one day and send a signed photograph of it to Al Gore and Obama; maybe Mr Roberts can make my dream come true. Hint: It operates like the Panama Canal where water raises and lowers a ship. After 6 long years, this mine can happen.

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