An energy analyst says the Federal Government needs to study India when it comes to what may be the biggest coal mine in the world to be constructed in Queensland.
Despite concerns from Traditional Owners and environmental advocates, the Queensland Government has been pushing ahead with the proposed Adani Carmichael coal mine.
While the proposal is still subject to ongoing legal action, the Indian mining giant has been given the green light from both the Queensland and Federal Governments.
In an article, Director of Energy Finance Studies Australasia, Tim Buckley talks about India’s rapid transition to renewables, citing their agreement to reduce reliance on thermal generation from 70 per cent to 55 per cent by 2030.
Mr Buckley says India’s plans to significantly cut the use of coal will affect the financial viability of the project and that financial closure will present a major obstacle.
The comments come as the Federal Government contemplates fronting $1bn for the construction of a rail line for the mine.
According to the Australian, Queensland is already $70bn or more in debt and intends to use the Adani project to lower that number.
They cite research by Cadence Economics saying if the mine falls over, Queensland will lose royalties and take a $72bn hit to the economy.
Outgoing US President Barrack Obama acknowledged the downfall of coal in a recent Rolling Stone interview.
In describing why it would be hard to wind back his climate change efforts, he argued that it isn’t economical to build new coal mines due to natural gas being a lot cheaper.