Adani’s coal project exposes yet another risk to insurers: flooding

February 5, 2021

Adani and its rail line contractors, BMD and Martinus, have failed to prepare for the wet season. Pictures have emerged of substantial flooding on a section of the under-construction rail line to service the proposed Adani Carmichael coal mine in Australia.

Lawyers from Environmental Justice Australia (EJA), acting for Mackay Conservation Group (MCG), have written to Queensland Government ministers urging them to immediately investigate flood mitigation failures and sediment control breaches on the Adani Carmichael rail line. Photos of the breaches were taken by MCG, indicating large sections of Adani’s rail corridor submerged beneath flood waters.

Companies in financial distress are prone to cutting corners on maintenance, regulations and compliance. No insurance company in their right mind would insure a rail line on a flood plain that is not designed to withstand normal flooding events. Experts, former workers and environmental lawyers have slammed the design and construction of the rail line as it is not up to the standards required to prevent flood damage. Such widespread criticism of the coal project, in addition to the extreme climate impacts, violation of indigenous rights, and environmental degradation, send a clear message to insurance companies that Adani is not worth the risk.

This flooding is yet another reason insurance companies should drop this high-risk, climate wrecking project. Insurers at Lloyd’s of London, including Hiscox, Arch and Brit who have not yet publicly ruled out insuring Adani are running out of reasons not to do so.

For more information on the breaches, and the complaint filed by EJA on behalf of MCG, read the piece in ABC News Australia: Bravus (formerly Adani) accused of environmental breaches, amid concerns about ‘significant erosion’

Get the latest campaign updates on coal, climate and insurance.

  • UnfriendCoal will use the information you provide on this form to provide campaign updates. By submitting this form, you are accepting to receive emails from us. You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us at peter@sunriseproject.org.au. We will treat your information with respect. For more information about our privacy practices please visit our Privacy page. By clicking below, you agree that we may process your information in accordance with these terms.

    We use MailChimp as our marketing automation platform. By clicking below to submit this form, you acknowledge that the information you provide will be transferred to MailChimp for processing in accordance with their Privacy Policy and Terms.