One of the last obstacles to rejecting the polluting Adani coal mine has been removed with an analysis by leading economist Saul Eslake finding no threat of damage to Australia’s credit rating if the project was stopped.

In a new report, Mr Eslake explains: “There is absolutely no reason to think that Australia’s sovereign credit rating would be in any way affected if a future Australian government were to prevent the Adani Carmichael coal mine from going ahead on environmental grounds.”

The findings of the report include:

  • An analysis of the criteria used by ratings agencies, such as Standard & Poor’s, suggests there is no reason Australia’s sovereign risk rating would be affected by stopping Adani’s coal mine on environmental grounds. 
  • Australia’s sovereign risk rating has not been affected by previous changes in government policy on environmental grounds, including:
    • The end of sand mining on Fraser Island;
    • Bans on uranium mining in multiple states;
    • Restrictions on logging in native forests in multiple states;
    • Bans on coal seam gas exploration.
  • There is no evidence that Australia’s ability to attract foreign investment has been adversely affected by changes in environmental policy.

Australian Conservation Foundation Chief Executive Officer, Kelly O’Shanassy, said the report clearly rejects the main remaining objection to a Federal Government stopping the construction of Adani’s polluting coal mega-mine.

“Attempts to justify support for Adani’s dirty coal mine are falling like dominos. This mine will threaten our precious groundwater, the survival of the Great Barrier Reef and accelerate climate damage,” Ms O’Shanassy said.

“This report shows that there is a long history in this country of our elected representatives having the courage to step up and stop projects that threaten nature. It is time for this generation of federal politicians to act to protect our climate and the Great Barrier Reef from this polluting mega-mine.” 

Mr Eslake’s report can be found here.

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