Senate Standing Committees on Economics PO Box 6100, Parliament House, Canberra ACT 2600. [email protected]

RE: Inquiry into the Governance and Operation of the Northern Infrastructure Facility

Dear Senators,

The Pacific Island Climate Action Network (PICAN) is a network of civil society organizations in Pacific Island countries advocating for climate justice. We welcome the opportunity to make a submission to this inquiry.

Our concern relates to the potential for the NAIF to fund infrastructure to facilitate the development of large new thermal coal mines in the Galilee Basin. We are aware that the Adani rail proposal is being considered, as is a similar rail project by Aurizon.

Pacific Island nations face the realities of every day, with rising sea levels threatening our very existence. The use of fossil fuels must be reduced immediately to minimise this threat. Using a taxpayer-backed concessional loan facility to subsidise the development of huge coal projects will reduce coal prices, leading to greater consumption and exacerbating climate change. This is clearly against the interests of the Pacific and future generations everywhere.

These facts relate to part a. of your terms of reference:

The adequacy and transparency of the NAIF’s governance framework, including its project assessment and approval processes;

We believe that any assessment process that allows for the subsidisation of climate-change exacerbating projects like these is clearly inadequate. We would also like to bring to your attention the 2015 Suva Declaration on Climate Change, in which Pacific government leaders:

“Express grave concern that the continued increase in the production of fossil fuels, particularly the construction of new coal mines, undermines efforts to reduce global GHG emissions and the goal of decarbonising the global economy. … [Call for] a new global dialogue on the implementation of an international moratorium on the development and expansion of fossil fuel extracting industries, particularly the construction of new coal mines, as an urgent step towards decarbonising the global economy.1”

1 Pacific Island Development Forum (2015) Suva Declaration on Climate Change, http://pacificidf.org/wp- content/uploads/2013/06/PACIFIC-ISLAND-DEVELOPMENT-FORUM-SUVA-DECLARATION-ON-CLIMATE- CHANGE.v2.pdf

Pacific Islands Climate Action Network Email: [email protected] | Facebook: @CANPacificIslands | Twitter: @CANPacificIs

While Australia is not a party to the Suva Declaration, the opinions of neighbouring countries should be factored in to the NAIF’s project assessment and approval processes. Failing to do so will affect Australia’s standing in the Pacific and overall national interest. Outside of the Suva Declaration there have been calls for Australia to end approvals of new coal mines by Pacific leaders, such as former President of Anote Tong, the PNG High Commissioner to Australia Charles Lepani and most recently President of the Republic of the Marshall Islands, Dr Hilda Heine.2

As President Heine said, in a recent speech at the Australian National University,

"Now is not the time to be debating the science, trashing solar power, or building new coal mines. … I can assure you it does influence the way Australia is viewed in the Pacific. … This not only does your country disservice, it openly weakens your ability to be a force for good on the world stage."3

We encourage the Committee to consider the views of Pacific countries on climate change and work to ensure that the NAIF funds are directed towards projects that reduce rather than exacerbate the risks we face.

Yours Sincerely,

Krishneil Narayan Coordinator | Pacific Islands Climate Action Network

2 Keany (2015) Kiribati president urges world leaders to adopt moratorium on building new coal mines, http://www.abc.net.au/news/2015-11-19/kiribati-president-urges-world-leaders-moratorium-coal-mines/6953930 Iggulden, (2016) : PNG calls for Australian coal mining slowdown as new climate deal looms, http://www.abc.net.au/news/2016-04-22/paris-agreement-to-be-signed-amid-png-protest/7348676 Fettes (2017) Marshall Islands President Hilda Heine says Australia's standing in Pacific 'at risk' over climate change debate, http://www.abc.net.au/news/2017-05-17/marshall-islands-urge-australia-to-support-climate- change/8533434; 3 Fettes (2017) Marshall Islands President Hilda Heine says Australia's standing in Pacific 'at risk' over climate change debate, http://www.abc.net.au/news/2017-05-17/marshall-islands-urge-australia-to-support-climate- change/8533434

Pacific Islands Climate Action Network Email: [email protected] | Facebook: @CANPacificIslands | Twitter: @CANPacificIs