mEFhuc6W1n5SlKLH
Climate Action

Greenpeace calls for control of corruption in global coal industries

Greenpeace has proposed ways to manage corruption in global coal industries after the Organization of the Petroleum Exporting Countries (OPEC) outlined the severity of the problem

  • 20 October 2014
  • William Brittlebank

The Legal Adviser for Greenpeace, Marina Lou, has proposed ways to manage corruption in global coal industries after the Organization of the Petroleum Exporting Countries (OPEC) outlined the severity of the problem.

Juan Pablo Perez Alfonso, one of the founders of the Organization of the Petroleum Exporting Countries (OPEC) highlighted how instances of corruption in the industry around the world are causing damage that will “bring us ruin”.

India’s Supreme Court found that all 218 coal-mining licenses allocated by the government in 1993-2009 were perceived as “illegal”.

The committee were accused of lacking intelligibility and urgency to mitigate coal corruption.

India possesses 203 billion tonnes of coal in reserves.

The findings show that India had sold the exploration rights at an incredibly inexpensive cost, losing the country US$33 billion.

Subsequently, the government has now fined several companies that have begun the production and have cancelled 214 of the coal block allocations.

In Australia, the Independent Commission Against Corruption (ICAC) investigated former Labour ministers Eddie Obeid and Ian Macdonald for issuing licenses regarding coal and mining exploration.  

This has influenced the ICAC into producing and conducting further complex investigation in to the figures from the Australian Labour Party and the Liberal/Nationals Coalition.

In Indonesia, the country’s corruption commission has been concentrating on extractive industries such as, state officials who facilitate mining companies’ illegal activities. They have withdrawn the contracts of 17 coal producers that did not succeed in paying government royalties.

China’s largest anti-corruption drive has embarked on the coal industry.  Two officials from the Communist party in Shanxi have been incriminated for the corruption and abuse of power, bringing Shanxi’s future to the forefront of President Xi Jinping’s aim to eradicate entrenched corruption in the Party’s ranks.

As described by a former Journalist from Shanxi, “It has coal; coal brought money; that brought corruption.”

Marina Lou, a legal adviser at Greenpeace International, has called for greater transparency and has highlighted how conducting unfair open-tender processes is encouraging the growth of corruption and its consequences.