A Parliament Without Trust or Legitimacy Must Go

The insults hurled by David Leyonhjelm at Sarah Hanson-Young recently put parliamentary discourse in the gutter. Leyonhjelm was roundly condemned, but not by our leaders. A limp rap across the knuckles from Turnbull and Shorten, then on to more pressing matters, hoping it will all go away.

But not so fast; in governance parlance “the fish rots from the head”. Our leaders need to acknowledge the amoral, unethical parliamentary morass they have created, and its implications.

Australian society today is not a pretty sight. Despite the hype around Australian “values”, years of neoliberal policy have seen money corrupt everything. The Banking Royal Commission, long resisted by the incumbency, is exposing not just a few bad apples but an industry rotten to the core from excessive remuneration, greed which is certainly not restricted to the finance sector. In sport, winning is everything, whatever the cost, but it long ceased to be sport in any true sense. Violence against women and minorities escalates, egged on by the Leyonhjelms of this world. Population pressure sees tolerance disappear. Inequality increases in leaps and bounds, exacerbated by mythical “trickle-down” economics. Drug and alcohol abuse is widespread. Terrorism threats and migration justify massive over-reaction in restricting individual liberties. Crass commercial media and shock jocks incite vindictive extremism. Continuing scandals suggest that few people in positions of public trust have any idea of the moral and ethical responsibilities which go with those roles.

Above it all sits a national parliament incapable of sane discussion on anything. Screamed abuse replaces reasoned debate, any sense of civility long gone. Little wonder societal standards decline when “leaders” set such an appalling example. But there are far more fundamental implications.

Concepts of left and right in politics long since became irrelevant to solving the critical issues facing Australia. The imperative is that those issues do actually get addressed, which is patently not happening.

The first priority of government, we are told, is to ensure the security of the people. In theory, we elect politicians to govern on our behalf to provide that security; politicians who, pre-election, profess undying commitment to public service.

What we get, with a few notable exceptions, are politicians who, once elected, focus largely on party machinations, getting re-elected or otherwise feathering their nest. Much sound and fury around minor issues, whilst the critical ones are ignored. It was not always thus; historically in politics and business there were statesmen and women prepared to set aside their personal interests in favour of the common good, but they are long gone since money came to dominate. Good people are elected to parliament, but their good qualities are rapidly subsumed by party politics.

Behind it all, the creeping cancer of the neoliberal agenda dominates the current government. Driven by right wing apparatchiks in the Institute of Public Affairs, the Minerals Council of Australia, the Business Council of Australia, the Murdoch press and elsewhere, every opportunity is taken to push deregulation, reduce the size of government, emasculate and politicise the public service making it subservient to ideologically-blinkered political advisers, with no regard for the “common good”. Power is concentrated in a few wealthy hands in the interests of “conservatism”, shorthand for maintaining the status quo for the benefit of existing elites. So dissent must be suppressed, activist groups muzzled, the ABC silenced, academic freedom undermined, public debate dumbed down and the public treated as fools. Few are even aware it is happening, except when the occasional stuff-up occurs as with Tony Abbott spilling the beans on the real intentions of the Ramsay project for the promotion of Western Civilisation.

This is where facism begins; the cancer must be stopped if we want a prosperous, sustainable and fair society.

In this, Australia is following the US, where the process is far more advanced. The insidious efforts of right wing billionaires such as the Koch brothers, to seize the levers of power has been going on for decades, the inevitable outcome flagged by Lord Acton long ago: “Remember, where you have a concentration of power in a few hands, all too frequently men with the mentality of gangsters get control. History has proven that. All power corrupts; absolute power corrupts absolutely”.

The deterioration of US society, with increasing inequality, violence, crumbling infrastructure and much more has, to a significant extent been brought about by this venality. US and Australian neoliberals are inextricably linked in moving this agenda forward.

Except that the status quo can no longer be maintained, as neoliberalism has long since sown the seeds of its own destruction. The inevitable result of decades of exponential growth in both population and consumption is that we are now hitting the limits of the global biosphere, which cannot be circumvented. This is manifest in multiple ways, inter alia: increasing water stress, massive biodiversity loss, decreasing productivity of agricultural land, escalating social conflict over declining resources and associated migration. To the point that the economic growth model under which our economies operate is no longer sustainable, despite desperate efforts to keep it afloat with massive financial interventions such as “quantitative easing”.

Overshadowing it all is human-induced climate change.

Its risks are intensifying and the physical impact worsening, with global climate-related losses running at record levels. Despite 30 years of political and corporate rhetoric, nothing has been done to seriously address it, notwithstanding increasingly urgent warnings.

The result is that climate change is now an immediate existential risk to humanity. That is, a risk posing large negative consequences which will be irreversible, resulting inter alia in major reductions in global and national population, species extinction, disruption of economies and social chaos, unless carbon emissions are rapidly reduced. The risk is immediate in that it is being locked in today by our insistence on expanding the use of fossil fuels when the carbon budget to stay below sensible temperature limits is already exhausted.

To prevent temperatures rising above the upper 2degC limit of the 2015 Paris Climate Agreement, it is no longer possible to follow a gradual transition path. We have left it too late; emergency action, akin to wartime regulation, is inevitable. Market-based measures alone are insufficient.

Those still sceptical of this reality only have to look at the Northern Hemisphere now, particularly the Arctic, Asia and the US, as extreme temperatures trigger positive feedback loops, creating global climate conditions which make normal life impossible.

Neoliberals in the US and Australian fossil fuel industries long ago saw climate change as the greatest threat to the stranglehold on power from which they have benefited for so long. Accordingly billions of dollars have been devoted to discrediting climate science, raising doubts about its authenticity through every possible means, with much US money flowing in to support Australian campaigns. A process which has been remarkably successful, albeit nothing less than a crime against humanity.

But even the Koch brothers, the IPA and the MCA cannot change the laws of physics. The climate science has been rock-solid for decades and the cost of neoliberal disinformation is now coming home to roost. Unfortunately that cost is being borne by the poor who can least afford it, and groups like Australian farmers, rather than the elites who created it.

As Churchill put it: “Want of foresight, unwillingness to act when action would be simple and effective, lack of clear thinking, confusion of counsel until the emergency comes, until self-preservation strikes its jarring gong—these are the features which constitute the endless repetition of history

Which places Australia in an extremely dangerous position. We are one of the countries most exposed to the impacts of climate change, particularly our agricultural sector. Yet our dysfunctional parliament has left the country totally unprepared for what is to come.

The crux of the problem is that our government is in total climate change denial. Climate and energy policy is a shambles, the result of endless contortions trying to reconcile the irreconcilable. Namely expanding our fossil-fuel based economy, particularly coal, whilst pretending to meet our wholly inadequate voluntary commitments under the Paris Agreement. An Agreement which the government is doing its damndest to undermine, despite having ratified it in 2016.

Policy is dictated by scientifically and economically illiterate right wing hard-coalers, such as Messrs Canavan, Abbott, McCormack, Kelly, Christensen and Abetz who cannot understand that reliable, dispatchable and lower-cost power is now available from renewable energy sources far more effectively and cheaply than from coal. Even when coal continues to be massively subsidised, far more than renewables, by the lack of a sensible carbon price to account for its externalities, namely the enormous damage done by the health and climate impacts of coal use, which have been ignored since the Industrial Revolution. None of which matters if you are in climate denial.

They stamp their feet like petulant schoolboys whose favourite coal toy is being taken away. They lie and dissemble, misrepresenting and cherry-picking sound technical reports, twisting them to achieve their preferred pro-coal outcomes, irrespective of the severe implications for the wider Australian community, egged on by the serried ranks of the neoliberal cheer squad.

Just because we have large coal resources does not give us the right to use them if the result is an existential threat to humanity. Commodities come and go; coal is no different. Coal has created great wealth, but it’s time has passed as its climate impact, along with that of other fossil fuels, is now destroying the societies it helped create. The development of Galilee Basin coal, along with CSG in NSW and Queensland, and shale gas in the NT and WA, would be suicidal in current circumstances.

As Sheikh Yamani put it in the oil context: “The Stone Age did not end for lack of stone, and the Oil Age will end long before the world runs out of oil”.

Australia was built upon the innovative application of science. That is also its future, which the government is destroying with third-rate, anti-science policy such as the National Energy Guarantee. The certainty for energy investment which business and politicians crave will be non-existent until action on climate change is accepted as the absolute priority in determining energy policy.  The solutions are available and blindingly obvious, including a realistic price on carbon and bans on any further fossil fuel expansion.

We have many opportunities to invest in low-carbon alternatives for both domestic and export use which provide far greater potential than traditional commodities such as coal. Particularly in providing distributed energy across the rural community. This is where our aspirations must lie, not in massive investment in propping up coal-fired power stations or investing in new ones. The cost to Australia as these investments inevitably become stranded assets, will be enormous, along with physical damage to the country from their climate impact. Rather than holding back renewable energy development, which is clearly the objective of current policy, we should be accelerating it to the maximum extent possible along with dramatic improvements to energy efficiency and conservation.

Neoliberal climate denialists insist that Australia’s domestic carbon emissions, 1.3% of the global total, are such as small amount that nothing we do will have any effect in addresssing climate change globally. That is nonsense; if exports are included, which they must be given the rapidly accelerating climate impact, Australia is already the sixth largest carbon polluter globally and will soon be fourth given the ramping up of our LNG exports. In short, we are a very big emissions player. What Australia does mattters.

The pretence that the government is serious about addressing climate change becomes ever more ludicrous. The most recent example is the $500 million allocated in a futile attempt to repair climate damage to the Great Barrier Reef, via the Great Barrier Reef Foundation, whilst simultaneously advocating the opening up of massive new coal mines in the Galilee Basin which would compound that damage, totally decimating the reef, along with tourism and other industries far more valuable than coal.

Likewise the announcement from Minister for Agriculture , David Littleproud, about an agreement with state ministers to help farmers adapt to climate change. Why was this needed? Because the climate is changing. What are we doing to stop it? Nothing, just attempting to adapt whilst making the problem far worse by building new coal-fired power stations and mines. Just how long can this cognitive dissonance continue?

The Prime Minister proclaimed in 2010 that: “Our efforts to deal with climate change have been betrayed by a lack of leadership, a political cowardice, the like of which I have never seen — “. He promised never to lead a political party that did not take climate change seriously. He now revels in doing exactly that, placing the future of generations of Australians in jeopardy. An abject failure of principled leadership.

The Opposition are little better, continually sitting on the fence denying the urgency for climate action, and ambivalent toward new coal development such as Adani. Equally lacking in leadership and principle.

Many parliamentarians are climate deniers, but that does not absolve them of the fiduciary responsibility to set aside their personal prejudices and to act in the public interest with integrity, fairness and accountability. This requires them to understand the latest climate science; it is not acceptable for those in positions of public trust to dismiss scientific warnings in the cavalier manner which has typified the last few years. Particularly when the risk is existential.

Ministers in particular do not seem to understand that they have that fiduciary responsibility, along with the related public duty and a public trust.

As Sir Gerard Brennan puts it: “A fiduciary is a person to whom power is entrusted for the benefit of another. ——- Power is reposed in members of Parliament by the public for exercise in the interests of the public and not primarily for the interests of members or the parties to which they belong. The cry ‘whatever it takes’ is not consistent with the performance of fiduciary duty ———- All decisions and exercises of power should be taken in the interests of the public, and that duty cannot be subordinated to, or qualified by, the interests of the (parliamentarian or Minister)

Effective action on climate change must be raised above political infighting if the government’s first responsibility to ensure the security of the Australian people is to have meaning. But nowhere in the political spectrum is there evidence of leadership that might step up to the challenge.

In the corporate sector, the widespread abuse of power, declining ethical standards and falling community trust in business is calling into question corporations’ “social licence to operate”, and their right to enjoy the privilege of limited liability, which has been the cornerstone of business since the early 1800s, on the grounds that it should be a privilege to be earned, not an inalienable right.

Trust “is a belief that a person or institution will perform their role or function in accordance with its obligations, or where not bound by duty, in a predictable manner”.

Beyond trust is legitimacy “a recognised and well-founded right to claim a certain status, role or function.

Our parliament must be held to higher standards than the corporate world. But community trust in parliamentarians is non-existent. Further, a parliament that is incapable of firstly, understanding, secondly, addressing and thirdly, is deliberately worsening, the critical issues which Australia faces, particularly climate change, has forfeited any legitimacy. It has no right to continue in its present form.

When the risks are existential, it is not acceptable to allow parliamentary renewal to await the next election and the likely continuation of dysfunctional government. The parliament is on Winter Break; it should not reconvene. The Governor General should disband it and consider alternative national governance arrangements.

Different forms of democratic structure are being canvassed widely, recognising the profound weaknesses of the current system. This expertise should be used to create something akin to a wartime Government of National Unity, with leaders of foresight and integrity.

Because the brutal reality is that climate risk now has to be handled as an emergency. Either we act, or we face a bleak future. Parliament must work for the people, not destroy them.

Sometimes we have to do what is required” 

Published in Pearls & Irritations, 9th August 2019

Climate Risk – MCA Directors Breach Duties of Care and Due Diligence

After 30 years of inaction, the focus on climate risk is accelerating as the physical impact of climate change worsens and the transition risks to a low-carbon world intensify. Despite effusive official rhetoric, nothing has been done to seriously address climate change, notwithstanding increasingly urgent warnings . Global climate-related losses are running at record levels .

To prevent temperatures rising above the upper 2degC limit of the 2015 Paris Climate Agreement, it is no longer possible to follow a gradual, incrementalist glide path. We have left it too late; emergency action, akin to wartime regulation, is inevitable, which further increases the transition risk. Market-based measures alone are insufficient.

Despite years of denial in the top echelons of corporate Australia, legal opinion has confirmed that: “company directors who fail to properly consider and disclose foreseeable climate-related risks to their business could be held personally liable for breaching their statutory duty of care and diligence under the Corporations Act.” . Regulators are finally waking up that climate risk has the potential to create a crisis far greater than the 2008 Global Financial Crisis, emphasising that: “climate risks are foreseeable, material and actionable now” .They have yet to honestly face up to the existential implications.

Curious then that the Minerals Council of Australia (MCA) should recently publish an astonishingly misleading report on Market Demand for Australian Export Thermal Coal, 2017-2030. In 52 pages, from consultant Commodity Insights, there is not a single mention of the greatest threat to thermal coal exports, namely climate change risk . Government estimates of thermal coal expansion are used to produce a single-line estimate of a massive 60% increase in thermal coal import demand by 2030 for countries across the Asian region. A strongly supportive media release from MCA Coal Director Greg Evans, confirms that “Australian coal is ideally placed to meet this growing demand”, albeit the report is silent on Australia’s possible share of this growth.

The report optimistically includes new powerstation builds but fails to properly net out older powerstations closures. It contradicts authoritative studies such as the International Energy Agency (IEA) 2017 World Energy Outlook, which suggests that to meet Paris climate change commitments, global thermal coal trade, far from expanding, will reduce by 28% by 2025 and 59% by 2040 . Even the IEA central New Policies scenario shows no growth.

The MCA is a company limited by guarantee, incorporated and domiciled in Australia, hence subject to the Corporations Act. To promulgate such material without qualification is misleading and deceptive. MCA’s directors must consider how climate change impacts MCA’s business, and the business of its members. This reports demonstrates an ignorance of climate risk and failure by the directors’ to discharge their duty of care and diligence in overseeing the company’s operations. The report is a blatant attempt to influence the current toxic political debate on climate and energy policy in favour of coal expansion.

The MCA has form in this regard, for three decades having been a serial offender preventing the introduction of serious climate policy in Australia. To the point that the two major MCA members, BHP and Rio Tinto, under pressure from their own shareholders, finally reconsidered their MCA involvement given the stark contrast between MCA climate policy and their own. Following reframing of MCA policy, which includes the duty to consider climate risk, both BHP and Rio retained their involvement.

Yet this report deliberately breaches the updated policy. Thus, MCA’s directors are increasingly exposed to personal liability for failing to govern the company in a manner that adequately considers climate risk.

Some MCA directors have short memories. In November 2015, the New York State Attorney General, via the US Securities and Exchange Commission, secured undertakings from the world’s largest coal company, Peabody Energy, for violating state laws prohibiting false and misleading conduct in regard to Peabody’s public statements on risks posed by climate change . In part by misrepresenting the findings and projections of the IEA. Peabody Energy Australia, a subsidiary of Peabody Energy, is a member of the MCA, with a director on the MCA Board.

The implications of South Asia following a Chinese pattern of coal expansion, which is what this report implies, are horrendous in terms of climate impact; the result would be: “a world incompatible with any organised global society” . Far more people would die from the use of coal than will ever be pulled out of poverty. The market for seaborne coal, far from growing, would disappear. The cost to Australia, in terms of stranded assets, would be massive.

In the national interest, regulators must now stop the stream of MCA disinformation once and for all.

—————-

This article was published in Pearls and Irritations and RenewEconomy in July 2018

Facing Reality: Reframing Climate Change as an Immediate Existential Risk

The Big Question:

“Who at the highest levels of leadership in corporates and public service will take the bold risks that are required, not gradually or incrementally, but decisively in line with the new scale and speed that ‘unthinkables’ emerge.”

ITD – Climate Change Emergency Response Rationale June 2018

Climate Change: The Fiduciary Responsibility of Politicians & Bureaucrats in the Era of Existential Climate Risks


“Fiduciary: a person to whom power is entrusted for the benefit of another”

“Power is reposed in members of Parliament by the public for exercise in the interests of the public and not primarily for the interests of members or the parties to which they belong. The cry ‘whatever it takes’ is not consistent with the performance of fiduciary duty”

Sir Gerard Brennan AC, KBE, QC

After three decades of global inaction, none more so than in Australia, human-induced climate change is now an existential risk to humanity. That is, a risk posing large negative consequences which will be irreversible, resulting inter alia in major reductions in global and national population, species extinction, disruption of economies and social chaos, unless carbon emissions are reduced on an emergency basis. The risk is immediate in that it is being locked in today by our insistence on expanding the use of fossil fuels when the carbon budget to stay below sensible temperature increase limits is already exhausted.

As one of the countries most exposed to climate impact, and in the top half dozen carbon polluters worldwide when exports are included, as they must be, this should be of major concern to Australia. Instead, politicians and bureaucrats urge massive fossil fuel expansion to supply domestic and Asian markets, the latter justified on the grounds of poverty alleviation and the drug peddlers argument that: “if we don’t supply it, others will”. Blind to the fact that fossil fuels are now creating far more poverty than they are alleviating. In so doing Australia would be complicit in destroying the conditions which make human life possible. There is no greater crime against humanity.

Regulators now recognise that climate risk far outweighs the financial risks which triggered the 2008 Global Financial Crisis, and demand action. Company directors have a fiduciary responsibility to understand, assess and act upon climate risk. Overseas, directors are already facing legal action, and personal liability, for having refused to do so, or for misrepresenting that risk. Compensation is being sought from carbon polluters for damage incurred from climate impact. Similar action will be taken here.

But what of our politicians and bureacrats and their contribution to this crime? The last few years have seen an unprecendented stream of lies and disinformation emanating from our official bodies around climate and energy policy, in blatant disregard of the facts, with seemingly no end to distortions designed to achieve short-term political advantage. What fiduciary responsibility do they have to the community they are supposed to serve?

Ministers repeatedly remind us that the first responsibility of government is the security of the people. On any balanced assessment of the science and evidence, climate change is now the greatest threat to that security and to our future prosperity.

Australia signed and ratified the 2015 Paris Climate Agreement, presumably with the intent of meeting its objectives to limit global average temperature increase to “well below 2degC above pre-industrial levels and to pursue efforts to limit the increase to 1.5degC”, and “to reach global peaking of greenhouse gas emissions as soon as possible —– in accordance with best available science”, recognising that “climate change represents an urgent and potentially irreversible threat to human societies and the planet”.

The voluntary Intended Nationally Determined Contributions (INDCs) made by Paris participants, if implemented, would not meet the objectives, leading to a global temperature increase in the 3-4degC range, a world incompatible with an organised global community. The Australian commitment, of a 26-28% emission reduction by 2030 on 2005 levels is derisory on any fair international comparison.

Regional temperature variations would be far greater than these global averages, rendering many parts of the world uninhabitable even at 2degC, beyond the capacity of human physiology to function effectively. This may well be the case across much of Australia.   Since Paris, our Federal Government has ignored the Agreement, brushing off the increasingly urgent warnings of “the best available science” and ramping up fossil fuel expansion, whilst placing every possible obstacle in the way of low-carbon energy alternatives.

The fact that many Ministers and parliamentarians are climate deniers for ideological or party political reasons, does not absolve them of the fiduciary responsibility to set aside their personal prejudices and to act in the public interest with integrity, fairness and accountability. This requires them to understand the latest climate science and to act accordingly. It is not acceptable for those in positions of public trust to dismiss these warnings in the cavalier manner which has typified the last few years. Particularly when the risk is existential.

The Prime Minister failed this test recently by implying the disastrous Tathra bushfires had nothing to do with climate change. Every extreme weather event today has some element of climate change involved; it is irresponsible to imply otherwise.

Ministers justify their approach by misrepresenting international studies to support their fossil fuel expansion ambitions. Notably by citing the work of the International Energy Agency (IEA). The IEA sets out its perspective on the energy sector over the next 25 years in its annual World Energy Outlook (WEO), exploring the implications of alternative climate and energy scenarios. Key scenarios are: current policies (CP) which assumes business-as-usual (4-5degC temperature increase), new policies (NP) which extends CP with policy committed to but not yet implemented (3.5-4degC temperature increase), and sustainable development (SDS) which is the pathway to meet various sustainable development goals. SDS claims to keep global average temperature increase below 2degC, but only with a 50% chance of success by relying on massive investment in sequestration technologies which have yet to be invented. In reality, SDS would result in temperature increase substantially above 2degC. There is no scenario which realistically achieves the Paris objectives.

The IEA is no paragon of virtue regarding climate change. It downplays both climate impact, and the potential of alternative energy sources, as a result of strong pressure politically from its developed country membership, and from vested interests who make up its advisory bodies such as the IEA Energy Business Council and the Coal Industry Advisory Board.

Consequently their scenarios are seized upon to justify further fossil fuel investment. For Australia, Asia Pacific coal demand is a key factor, this being our major export market. In the November 2017 WEO, under NP assumptions annual coal demand increases by 12% or 480 million tonnes by 2040, but under SDS assumptions it declines by 47% or 1880 million tonnes.

The IEA takes NP as their central scenario as this is where we are headed if governments implement their current commitments. However, in the fine print the IEA make it clear that NP is not a sustainable future. In the 2017 WEO, Executive Director Fatih Birol says: “Decision-makers also need to know where they would like to get to. — This is the point of the SDS scenario” – even though SDS does not meet the Paris objectives.

Having ratified Paris, presumably this is at least where Australia wants to get to. Not so our Ministers. At his National Press Club address on 28th March 2018, Resource Minister Canavan insisted on using the IEA NP Asia Pacific 480 million tonnes annual demand increase by 2040 to justify expansion of our coal industry, ignoring the SDS 1880 million tonnes decline. The latter is the minimum transition to approach a sustainable future; many existing operations become stranded assets before the end of their working life, and certainly no new coal investment. Ministers Frydenberg and Ciobo similarily insist on using NP estimates and ignore the SDS.

Canavan then assured the Press Club that in the first 40 years of this century, the world will use more coal than in the entire previous history of the coal industry. The IEA repeatedly emphasise that their scenarios are not forecasts. They are designed to give decision-makers an understanding of the implications of their actions, and they only cover part of the story. If the NP pathway is followed, there will be no market for export coal as Asia Pacific economies will shrink rapidly under the weight of climate impact. If more coal is used by 2040 than in previous history, humanity will become extinct. These are consequences the IEA does not discuss.

Such ministerial naivety is laughable, but it highlights a serious governance failure. As with company directors, it is incumbent upon ministers to understand these issues, in particular the risks to which the Australian community is exposed by their decisions. The only possible justification for Minister Canavan’s view is that he does not believe climate change is even a problem, let alone accept the need to rapidly reduce emissions. Further, he has no understanding of the implications of his proposed action. Whatever the Minister’s personal position, or the views of those who voted for him, given the overwhelming science and evidence confirming the urgency to address climate change, such ignorance is unacceptable and a fundamental breach of his fiduciary responsibility to the nation.

At the National Press Club, the Minister reacted angrily to a suggestion that the coal industry will phase out, objecting strongly to any thought of planning a transition. The mining industry will undoubtedly remain an essential part of the Australian economy, but markets for commodities come and go. Irrespective of political preferences, absent some unlikely technological breakthrough to sequester its emissions, coal will phase out, not instantaneously but relatively rapidly. Coal has been through many transitions in the past. The lesson from these disruptions is the need for thorough planning, retraining and support to avoid many people being badly hurt. Even more will be hurt, with massive climate impact, social and economic chaos, if the coal industry is expanded. It is irresponsible for the Minister to leave communities unprepared for these realities.

Minister Canavan then turned on “well funded” environmental groups “abusing” our “robust environmental laws” to prevent or slow down major projects, such as the Adani coal mine in Queensland’s Galilee Basin. Australia’s environmental laws were developed when human impact on the environment was far less than today. As that impact has grown, far from being robust, these laws are no longer “fit for purpose”. In particular, being domestically focused, they do not take account of the greatest environmental risk of all, which is climate change.

Under current UNFCCC rules, emissions from fossil fuel exports such as coal or gas are accounted for in the consuming country and are ignored by Australian courts and institutions in granting approvals for projects such as Adani.

However carbon emissions have global impact; coal exports from the Galilee Basin, would have major climate and environmental implications in Australia, as well as in consuming countries such as India. Our laws must be reframed accordingly if they are to be meaningful. As for “well funded”? Vested interests pour vastly more money into supporting fossil fuel expansion than has ever been available to environmental groups.

Parliamentarians, particularly ministers seem to have lost sight of the fact that they have a fiduciary responsibility to the public, which imposes upon them a public duty and a public trust. Sir Gerard Brennan again: “all decisions and exercises of power should be taken in the interests of the public, and that duty cannot be subordinated to, or qualified by, the interests of the (parliamentarian/minister)”.

It is entirely appropriate, when the legal system fails, for affected parties to take action to correct such failure, as with Adani, and with CSG projects in many parts of the country. In fact these are the only groups who are genuinely acting in the public interest. That the Federal government is now trying to muzzle them indirectly via the proposed Foreign Donations Bill is a further breach of its fiduciary responsibility.

The public has the right to expect that Minister Canavan take an holistic view of the Adani project and the many other fossil fuel developments he is promoting, including an honest appraisal of their climate implications for the community. That is not happening.

Similarily with Environment and Energy Minister Frydenberg, who should be proactive in changing environmental laws to include the climate impact of fossil fuel exports on Australia, rather than advocating that Adani proceed on the grounds it has met current inadequate environmental approvals.

Minister Frydenberg, and the government generally, breach their fiduciary duty by promoting poor climate and energy policy as represented by the National Energy Guarantee, whatever that ultimately means. This lowest common denominator solution is only being considered because of the fiduciary irresponsibility of a minority group of right wing parliamentarians, inappropriately identified as the Monash Forum, who put their own self-serving ideological agenda ahead of the public interest.

To claim, as the Minister did in his National Press Club speech on 11th April 2018, that: “the future of energy policy must be determined by the proper consideration of the public’s best interest not ideologically-driven predisposition”, just adds insult to injury given that the Coalition is, and has been for two decades, in total ideological denial on climate which largely explains our current policy shambles. The cost to Australia of this self-indulgence is enormous.

The Minister also misrepresents IEA analysis of Australia’s energy policies. The IEA conducts a periodic review of individual member countries policies. The latest IEA Australian review in February 2018 was presented by Minister Frydenberg as “backing the government’s energy policies — commending Australia’s commitment to affordable, secure and clean energy”. The report itself did no such thing, being highly critical in many areas, including Australia’s continuing failure to comply with IEA membership oil stockholding obligations of 90 days net imports. We hold less than half that, thus rendering Australia incapable of contributing to IEA collective action in the event of an international oil crisis; a further major security threat to the Australia community which has not been addressed despite repeated representations over many years.

In the light of these ingrained fiduciary failings, what of the bureaucracy, historically reverred for providing “frank and fearless advice” to the political class? It seems that analogy no longer applies. In recent policy reviews, the refusal to accept and articulate the implications of climate change on Australia shines through.

The December 2017 Review of Climate Change Policy was one of the most dishonest reports ever published by government in the climate arena. What purported to be a comprehensive review of the climate change challenge, and responses to it, is nothing more than a re-iteration of Australia’s wholly inadequate and inconsistent policies. No discussion of the latest climate science and its implications, no preparedness to face up to the real action required. In short little more than political whitewash for public consumption, pretending to do something whilst doing little.

The 2017 Foreign Policy White Paper acknowledged that climate change will be an important influence on international affairs, particularly in our region. It then anticipated: “buoyant demand for our exports of high-quality coal and LNG — ” based on the IEA NP scenario referred to above, around which policy is presumably centred, despite the fact that demand under this scenario would be decimated by climate impact. This should be unacceptable to DFAT as our lead Paris negotiator, as it is totally inconsistent with meeting Paris objectives.

The 2016 Defence White Paper for the first time did mention climate change in passing in one of its six key strategic drivers of Australia’s security environment to 2035 and it is understood the Department of Defence have since extended their planning to prepare for its impacts as a “threat multiplier”. This is encouraging, but far behind action being taken by the military overseas.

The overriding impression is that the Federal bureaucracy, with some notable exceptions, are not treating climate change with anywhere near the urgency it demands; whether because of political pressure to downplay the issue, or because of personal convictions, is not clear.

Either way, fiduciary responsibility arises again. The Australian Public Service Impartiality Value requires advice given to government to be: “apolitical, frank, honest, timely and based on the best available evidence”. Further, it must be: “objective and non-partisan; relevant comprehensive and unaffected by fear of consquences, not withholding important facts or bad news; mindful of the context in which policy is to be implemented, the broader policy direction set by government and its implications for the longer term”.

Henceforth, climate change will determine policy across the spectrum, encompassing national security, defence, energy, health, migration, water, agriculture, transport, urban design and much more. Given continued urgent warnings from scientists, including the government’s own experts, on the need for far more rapid action, the parlous state of our climate and energy debate and the shortcomings in policy formulation, the Federal bureaucracy is hardly meeting its own standards of fiduciary responsibility to the community.

So what can be done? Many argue that current failures are the nature of politics and we should expect little else. But when the key issues are existential, that is to consign democracy to the dustbin of history and to accept increasing social chaos. In contrast to earlier eras, the concepts of fiduciary responsibility, public interest and public trust, are clearly not understood by the incumbency, from the Prime Minister down. This has to be corrected.

A Federal Parliament with any degree of such responsibility, would recognise that climate change poses an unprecedented threat to Australia’s future prosperity, requiring emergency action. To those prepared to honour this obligation, there is ample information before parliament to warrant that conclusion. In the public interest, parliamentarians would set aside party political differences, adopting a bipartisan approach to structuring such action, with the bureaucracy in full support.

That is highly unlikely, so there remains legal action. Around the world the seriousness of the climate threat, and the inaction of governments, is prompting communities to take this step, with increasing success. The same will happen in Australia, absent an outburst of commonsense within the political class.

This article was published on Pearls & Irritations, RenewEconomy and Climate Code Red

If Business Leaders Want To Regain Our Trust, They Must Act On Climate Risk

Business leaders seem astonished that community trust in their activities is at an all-time low, trending toward the bottom of the barrel inhabited by politicians. To the corporate leader dedicated to the capitalist, market economy success story of the last 50 years, that attitude is no doubt incomprehensible and downright ungrateful.

But it is hardly surprising given continuing scandals and declining ethics across the corporate and banking worlds, driven by the pernicious impact of short-termism, rising inequality and undue political influence; in large part the outcome of the oxymoron of “pay-for-performance” remuneration. So how is trust regained? The need for stronger leadership, ethics, greater transparency, open communications and improved culture feature prominently in current responses.

But a far more fundamental requirement is ignored, namely that business must lead on really critical issues, particularly the point raised long ago by economist Kenneth Boulding: “Anyone who considers economic growth can continue indefinitely in a finite system is either a madman or an economist”. The constraints Boulding anticipated have now arrived, as burgeoning population and economic growth crash into global biophysical limits which cannot be circumvented.

Those constraints, encompassing resource shortages, biodiversity loss and pollution in various guises, do not feature in the capitalist economic lexicon, as technology and the market are supposed to overcome all as we march toward the sunlit uplands of the neoliberal nirvana. In the real world, the entire growth model under which Australia and global economies operate, is not longer sustainable; it sowed the seeds of its own destruction some time ago and is rapidly driving itself into the ground as growth rates decline. This is the great “black elephant” of business and politics; a known, knowable fact that no-one wants to acknowledge – the unmentionable in the Business and Governance Summits currently in full swing around the country, as our leaders strive mightly to compound the problem with self-defeating subterfuges to maximise growth, not least corporate tax cuts and trade agreements.

To the community, these constraints are increasingly obvious as the quality of life for the average person deteriorates in myriad ways. The greenwash and rhetoric of much-vaunted corporate social responsibility no longer holds water when our supposed leaders are not prepared to address the issues that really count for our survival, let alone prosperity.

These range from basic considerations such as ensuring food and water availability, to the creation of genuinely sustainable global societies. However the first priority must be human-induced climate change, manifest as the lack of an atmosphere into which we can continue dumping carbon pollution from the burning of fossil fuels, agriculture and deforestation, without causing catastrophic consequences.

Climate change is accelerating far faster than expected, to the point where it now represents an existential threat to humanity, that is a threat posing permanent large negative consequences which will be irreversible, an outcome being locked in today by our insistence on expanding the use of fossil fuels. This should be a major concern in Australia given that we are more exposed than most, but instead our leaders would have us embark on massive fossil fuel expansion. Already one of the world’s largest carbon polluters when exports are included, Australia is complicit in destroying the conditions which make human life possible. There is no greater crime against humanity.

The economic and social impacts will be devastating unless that policy is rapidly reversed. The unprecedented hurricane season in the Atlantic, bushfires in the Californian winter, extreme heat in many parts of South Asia and rapid heating of the Arctic with associated instability in the Northern Hemisphere weather system, are only the most recent portents of what is to come. The worst outcomes can only be avoided now by emergency action, akin to restructuring economies on a war-footing.

It finally seems to be dawning on corporate and investor leadership that climate change is a real and present danger which is not going away. Company directors are personally liable for failing to assess and act upon climate risk, but the greenwash continues. Major corporates parade their credentials in support of serious climate action, but none of their scenarios and policies are in line with the Paris objective of constraining global temperature increase “well below 2degC above pre-industrial levels and to pursue efforts to limit the increase to 1.5degC”.

Fortunately, as understanding of the risks improves, regulatory pressure mounts. The recommendations triggered by Mark Carney, Governor of the Bank of England, via the Task Force on Climate-Related Financial Disclosure (TCFD) are gradually being taken up, with companies voluntarily disclosing the impact which a 2degC policy framework would have on their organisation, assuming such a framework was ever put in place (by governments?). Progress, but reactive and certainly not leadership. The question that must be answered is: “what are you doing proactively as a company to create a 2degC world” – more realistically closer to 1.5degC, as it is now patently clear that 2degC is far too high?

If business genuinely wishes to regain trust, it must proactively face up to the challenge posed by climate change and initiate emergency action. Beyond that, it must open up honest debate on a new economic model to replace conventional growth. It is the only way business will be sustainable in the 21st Century with a real social licence to operate.

In Churchill’s words: “Sometimes we have to do what is required”.

An edited version was published in The Guardian.