India’s Planned Exit from Coal Leaves Adani Carmichael Mine Uncertain

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India’s Planned Exit from Coal Leaves Adani Carmichael Mine Uncertain

India’s National Electricity Plan has indicated a shift from sourcing energy from conventional coal toward building the capacity of renewable energy and storage. Under the Plan, India will cease constructing further coal-powered energy generation plants until at least 2027. India is currently constructing 50 GW of coal-based energy generation plants but the Plan indicates India’s renewable energy generation capacity is to increase by 100 GW, in alignment with the national target of 40% renewable energy by 2030.

This effectively refutes Australian political rhetoric about Australia lifting India out of ‘energy poverty’ through  development of the Carmichael Mine, connecting railway and Abbot Point Port in Queensland to export coal. However, India’s identification of the decline of coal in its future energy mix indicates the Carmichael Mine may soon become a stranded asset with a shrinking export market.

The Carmichael Mine has been subject to numerous legal challenges from various stakeholders. The Australian Conservation Foundation’s claim for judicial review of the original ministerial decision granting the mine in Australian Conservation Foundation Incorporated v Minister for the Environment [2016] FCA 1042 was that coal generated by the mine would substantially increase greenhouse gases. This claim was dismissed by the court, finding that under the Kyoto Protocol emissions were to be accounted for by the country that emitted the greenhouse gas not the country of origin of the coal.

 

 

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