24 May 2016, Renew Economy, Debt-ridden India energy group drops mention of Galilee Basin projects. India energy group GVK Power & Infrastructure last weekend reported its year-to-March 2016 results, detailing its fourth consecutive annual loss, but it’s most telling component is the information it did not provide. Its accounts make no mention of the Alpha, Alpha West and Kevin’s Corner coal mines and associated infrastructure proposal for the Galilee Basinin northern Australia —projects GVK has long been promoting, and which it bought its controlling share from the Hancock group. The company is in financial distress. Net debt increased US$435 million to a record high of US$3.5 billion. In contrast, shareholders equity shrank 30 percent year on year to US$202 million. Earnings Before Interest and Tax (EBIT) covered just 36 percent of the US$321m of net interest expense for 2015-16. Into its sixth year, the Alpha project has made no measurable progress, and financial close remains elusive and distant while the coal market is as structurally challenged as ever. With India Energy Minister Piyush Goyal remaining committed to the target for India to aggressively cut thermal coal imports, any strategic merit of this proposal for India has lapsed. Consistent with this, NTPC Ltd this month reiterated its plans to cease thermal coal imports in the current 2016-17 year. The slump in the book value of shareholders means net debt is 17 times equity, and that is before any impairment of the highly financially leveraged and stranded Alpha coal proposal in Queensland. The results make no mention of this off-balance-sheet US$1 billion-plus investment that is entirely debt funded. Read More here
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27 May 2016, The Conversation, Antarctica may not be as isolated as we thought, and that’s a worry. For a long time, we have thought of Antarctica as isolated from the rest of the world. The continent is entirely surrounded by the Southern Ocean, which heaves with giant waves whipped up by intense winds, and is home to the world’s strongest ocean current, the eastward-flowing Antarctic circumpolar current (ACC). The Southern Ocean is associated with several circumpolar oceanic fronts (see image below), where sharp transitions in ocean temperature and salinity occur. One of the most significant of these is the Antarctic polar front, a convergence zone where cold Antarctic water sinks under warmer sub-Antarctic water. Ocean barrier The polar front was considered as a barrier blocking movement of marine plants and animals into and out of Antarctica. Many groups of organisms show strong differences on either side of the front, suggesting northern and southern populations have been separated for a long time. We know from genetic work that some species, such as some molluscs and crustaceans, have managed to cross the front in the past, but there is little evidence that biological movement across the front can or does still occur. Read More here
27 May 2016, The Conversation, We’re kidding ourselves if we think we can ‘reset’ Earth’s damaged ecosystems. Earth is in a land degradation crisis. If we were to take the roughly one-third of the world’s land that has been degraded from its natural state and combine it into a single entity, these “Federated States of Degradia” would have a landmass bigger than Russia and a population of more than 3 billion, largely consisting of the world’s poorest and most marginalised people. The extent and impact of land degradation have prompted many nations to propose ambitious targets for fixing the situation – restoring the wildlife and ecosystems harmed by processes such as desertification, salinisation and erosion, but also the unavoidable loss of habitat due to urbanisation and agricultural expansion. In 2011, the Global Partnership on Forest and Landscape Restoration, a worldwide network of governments and action groups, proposed the Bonn Challenge, which aimed to restore 150 million hectares of degraded land by 2020. This target was extended to 350 million ha by 2030 at the September 2014 UN climate summit in New York. And at last year’s landmark Paris climate talks, African nations committed to a further 100 million ha of restoration by 2030. These ambitious goals are essential to focus global effort on such significant challenges. But are they focused on the right outcomes? For restoration projects, measuring success is crucial. Many projects use measures that are too simplistic, such as the number of trees planted or the number of plant stems per hectare. This may not reflect the actual successful functioning of the ecosystem. Meanwhile, at the other end of the scale are projects that shoot for outcomes such as “improve ecosystem integrity” – meaningless motherhood statements for which success is too complex to quantify. One response to this problem has been a widespread recommendation that restoration projects should aim to restore ecosystems back to the state they were in before degradation began. But we suggest that this baseline is a nostalgic aspiration, akin to restoring the “Garden of Eden”. Read More here
24 May 2016, ECO 8, Barro Blanco: Never Again. ECO is deeply concerned by the current developments in the Barro Blanco project in Panama, a hydroelectric dam registered under the Clean Development Mechanism (CDM) and financially backed by the German and Dutch development banks. In 2015, Panama recognised that the Barro Blanco project had been approved in violation of the Ngäbe’s social and cultural rights. The government temporarily suspended the construction of the project. Later in the year, the government fined the project developer $775,000 for failing to negotiate with, relocate and compensate those affected by the dam. How can it be that the dam is fully constructed, and still no agreement has been reached with the affected Ngäbe communities? Just two days ago, Panama announced that it will “initiate the filling of the dam reservoir” today on May 24. While the government claims that the measure is “temporary and will allow for the necessary testing,” it will flood homes, schools, and religious sites and threaten the cultural heritage of the indigenous Ngäbe communities. The flooding will severely affect the Ngäbe’s territorial lands and means of subsistence, and will result in the forced relocation of several families. Barro Blanco is a clear example of why human rights protections must be included in the newly established Sustainable Development Mechanism. Despite the Parties’ failure to reach agreement on the scope of an appeals procedure for the CDM, the SDM must learn from CDM’s mistakes and provide an accountability mechanism that allows affected peoples and communities to raise concerns about harms associated with these mitigation projects. As the Paris Agreement calls on Parties to protect human rights in climate action, Parties must ensure that another Barro Blanco never happens. Source here