Is Ex-Im Bank President Fred Hochberg Underwriting Destruction Of The Great Barrier Reef, Again?

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"Is Ex-Im Bank President Fred Hochberg Underwriting Destruction Of The Great Barrier Reef, Again?"

by Justin Guay, via the Sierra Club

The U.S. Ex-Im Bank and its president Fred Hochberg have never met a coal project they didn’t like.

At times it’s so bad we don’t know what century the institution thinks it is operating in. Now, despite a worldwide uproar over the Bank’s interest in one of the world’s largest coal ‘mega-mines’ in Australia, it has been linked to another Australian mega mine that would bring coal across the Great Barrier Reef. Underwriting this potential destruction of the Great Barrier Reef is an unacceptable use of U.S. tax payer dollars — and it’s time Ex-Im Bank came clean on its involvement.

It’s not surprising to hear over-eager developers link the Ex-Im Bank to these projects because the institution has a long history of supporting fossil fuel projects. And that track record is getting worse. It got so bad that the Sierra Club wrote an open letter to President Fred Hochberg after we witnessed first hand the destruction these projects are wreaking on communities and livelihoods (check out our blog on the Sasan coal project in India).

But our pleas were callously ignored as President Hochberg okay-ed a massive expansion of coal finance in every corner of the globe. From Kusile in South Africa, to Sasan in India, to Xcoal in the U.S., to the recently proposed mines in Australia, it appears that Ex-Im Bank cares little for the environmental damage the institution is causing around the world — not to mention the reputation of this administration.

The problem, however, is that the public does. And that public stretches from Australia where the mining would take place, to India where the coal would be burned, to the U.S. where the financing would come from. This global outcry was captured in part by Avaaz’s petition to #savethereef (consider taking a minute to contact Fred Hochberg personally via twitter: @fredhochberg), but also by media scrutiny in India, the U.S., the UK and Australia. It appears that while President Hochberg may consider designations like “World Heritage Site” pesky obstacles, the global public considers them treasures.

Which is why Greenpeace Australia’s recent report on massive coal export expansion plans that would trample the Great Barrier Reef — and the global climate — was so damning. They found that if underwritten by institutions like Ex-Im Bank, the world would add emissions equivalent to a country the size of Canada while increasing traffic through one of the world’s greatest natural wonders. For an excellent visual representation of this lunacy check out Greenpeace’s short video:

So how did President Hochberg react? By quietly talking with another Indian company to finance another mega mine – this time with Adani group whose record of violations would give most institutions pause. Not Ex-Im though. After all, it makes sense that being linked to a scandal plagued Indian coal sector beset by “coal-gate” investigations would be of little consequence if you are willing to finance the destruction of a global treasure like the reef.

But at the end of the day, these may be over-eager developers looking to increase perception in the financial community that their projects have legs. The truth is, with prices at near two-year lows, the Australian mining community is understandably worried that these projects are no longer viable. That is why the vociferous claims from Adani and GVK may be making their way into the press at this opportune moment.

But if that’s true, it’s easy enough for President Hochberg to condemn these public statements, and publicly dissociate the bank from this scandal. Instead he has been silent — leaving a huge question mark over U.S. involvement. But let’s not put words in anyone’s mouth. Let’s let President Hochberg speak for himself.

So Mr. Hochberg, where do you stand on these projects? The world is waiting for your answer.

Justin Guay is head of the Sierra Club’s international program. This post was originally published at Sierra Club’s India Environment Post and was reprinted with permission.

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2 Responses to Is Ex-Im Bank President Fred Hochberg Underwriting Destruction Of The Great Barrier Reef, Again?

  1. Merrelyn Emery says:

    Today’s news – 27 year longitudinal study finds 50% of reef gone with worst damage immediately alongside industrialized coastline. Further north, it is holding its own, just. Without urgent action, it predicts another 50% loss by 2022, ME

  2. This makes me wonder why the Sierra Club is endorsing Obama.