Adani’s group much anticipated coal project has been found to make significant impact on the environment of Australia. It has also been addressed to be economically as well as financially unviable. In this study these aspects of Carmichael Coal project have been discussed in detail. The main aim of the study is to identify the sources of revenue for both state and federal government. On the other hand, it has shed light on the issue of extinguishing the native title rights to allow Adani Group to undertake the coal project. Moreover environmental concerns have also been highlighted and major reasons for which Indian companies look for opportunities in other countries have also been evaluated.
Advanced financial reporting is mainly an instructor that helps to provide a better financial report of organisation with showing different accounting concepts. In this report it mainly focuses on identifying different revenue streams that is majorly affecting organisation to have better marketing condition. It can be seen that in this report it shows different impact of carbon emissions in the environment and effects of that to aboriginal people. Moreover, this report also focuses to show different impact of water pollution due to this sediment dump in Great Barrier Reef and its effects. In addition, the study shows different causes of Indian companies to look abroad and meet their requirements accordingly. The problem statement of the study is to analyse the viability of Adani Group’s coal project in term of benefits and environmental needs.
Adani’s coal mine project would impact both the economic and environment of Australia. In spite of all these it has been considered to create an income stream for both State and Federal government.
Coal projects undertaken by Adani Group in Queensland area of Australia has been considered to be financially unviable and would negatively impact the Great Barrier Reef. Along with these groundwater would also be impacted negatively (Grech, Pressey and Day, 2016). Hence the Coal project was involved in a lot of controversy for the past 5 to 6 years.
However, after much debate and problems as well as analysis, this project has been accepted by both the Federal and State governments of Australia. This is because as stated by Steffen et al. (2017), the project has slated to produce 8 to 10 millions of thermal coal and has projected to offer large number of employment opportunities to the youths as well as Aboriginals residing in Queensland (theguardian.com, 2019).
However most importantly it would create revenue streams for the State and Federal governments. These streams of income have been identified to be payment made by Adani Group for water licence. Since Adani group would be self funding the project therefore it would not require any form of subsidies that are offered by both state and federal government. On the other hand, it has been observed that the firm would be paying $20 million as water licence to Queensland State government and federal government (lighthouse.mq.edu.au, 2019).
Therefore it has been found out that the decision of self funding projects would lead to non-availing of subsidies. Hence Government of Australia would be able to reinvestment these money for other developmental projects (Towler et al. 2016). In addition to this, an extra source of income from payments received as water licence would help in reinvesting the money for development of local communities (lighthouse.mq.edu.au, 2019).
The project was given a final nod by Australian Government when Adani Group proposed that it would be undertaking a Groundwater Management Plan. Under this plan it would be ensured by the company that groundwater is not depleted. On the contrary, it has been observed that some of the environmental experts have raised concerns about environmental ramifications. This is because the operations at the site would require a huge amount of water that has been estimated to be $12.5 billion litres of water (lighthouse.mq.edu.au, 2019). On the other hand, acceptance of this project would also lead to negative impact on the Great Barrier Reef and it would also be a significant reason for Ocean Acidification (Initiative, 2018). Thus there exists a conflict of interest between income streams and environmental concerns.
The native title right that has been given to Torres Strait Islander and Aboriginals, as per section 237 of Native Title Act, avails them to freely access land and water in Australia. If Adani Group starts it’s much awaited Coal project in Australia then the Government has planned to extinguish or revoke the rights of the aboriginal people. As per Gleeson (2018), extinguishing the native title means that the rights of freely accessing land and water that is a part of their traditional culture would be revoked. They would not be allowed to use the resources as well as would not be able to conduct any form of activities in legal terms. The decision of Australian Government to approve the use of Carmichael Coal Mine by Adani Group would put restriction on aboriginal people’s movement in the area. As per new framework, Aboriginal would be treated as Trespassers and hence their activities in the coal mining site would be found to be illegal.
However in this case, both Government and Adani Group are not keeping into account the interests of the most significant stakeholders. Their concerns are also valid if Aboriginals’ rich heritage culture and ancestry is to be considered. For example, it has been found out that Aboriginals have raised issues related to devastation of ancestral lands and waters (smh.com.au, 2019). Another issue that they have raised is that of harm done to the Totemic animals and plants as well as their cultural heritage (smh.com.au, 2019).
In the opinion of one the Aboriginals, Mr Burragubba, as per Indigenous Land Use Agreement in 2014, allowing a firm to undertake operations would disrespect laws of aboriginal people (smh.com.au, 2019). It would harm the cultural heritage as well as their way of life and would also restrict their movement. Thus it does not help in improving the lifestyle of Indigenous people as well as their freedom would be snatched. In addition to this environment would be harmed beyond repair.
It has been identified that the land that is currently used for ceremonial purposes have also been seized from Wangan and Jagalingou group who are based in Queensland’s Galilee basin (theguardian.com, 2019). This has impacted their sentiments in a negative way as well as they have lost their confidence in the Government’s approach towards them (Howlett and Lawrence, 2019).
Therefore it can be inferred that the Australian Government should not extinguish the native title rights of Aboriginals for Adani Group. Instead it should find a way to mitigate the issues of Aboriginals and meet their interests by offering Adani Group some other parts of land.
Carbon pollution has always been a threat to oceans and reef coastlines. It has been observed that Great barrier reefs and oceans in Australia are at greater risk of getting polluted from the much anticipated Coal project of Adani Group. This is because mining and burning of coal creates carbon pollution. On the other hand, it heats oceans and is a main harmful factor of Coral bleaching (marineconservation.org.au, 2019). In addition to this if the rate of carbon pollution keeps on increasing then it would lead to more catastrophic events and would lead to drastic climate changes (Marshall, 2016).
In the case of Adani Group, it has been projected that it would be one of the world's largest coal mines that would be responsible for generating 4.7 billion tonnes of carbon over its lifetime of 30 years. Adani Group would be expanding a massive port that would be located along the reef’s coastline. The harmful impact of this expansion would be that a million cubic meters of the seafloor would be dredged. On the other hand, this would be threatening for the already vulnerable sea creatures that are Dugongs and turtles as well as dolphins (marineconservation.org.au, 2019). Furthermore, it has been understood that the post initiation, hundreds of coal ships would be travelling, leading to a rise in risk of accidents. Heating up of oceans considerably leads to destruction of large number of aquatic animals habitat.
Therefore it can be stated that Adani Group should not be allowed to conduct operations in Queensland Carmichael Coal Mine as per the environment impact statement.
It is seen that carbon emission is majorly impacting the environment and destroying its entire habitat one by one. Moreover, due to high carbon emission it can be seen that there is a large climate change as a result carbon emission is increasingly polluting the environment and due to this various natural calamities are taking place as such drought. As opined by Kroon et al. (2016), due to this aboriginal people living in this place is getting many issues regarding this high pollution growth. Henceforth, people are mainly focusing to shift from one place to another in search of food and water. In addition, due to high increase in pollution level it is seen that people are suffering from asthma. As such this disease is majorly being found among aboriginal people and due to this death rate is increasing at high level. On another side, aboriginal people get impacted through high greenhouse gas emissions (Liu, 2018). As such skin diseases are a common factor being found among the people.
Major impact of water pollution due to this carbon emission in great barrier reef is due to high pollution the water quantity level is being intoxicated. As stated by Race et al. (2016), this is majorly hampering water quality and due to this various people is getting sick. Moreover, coral reefs present in the Great Barrier Reef is also getting highly intoxicated and as such this is destroying the coral reefs. Minerals present in the water are also being destroyed due to this high in toxicity. In addition, it can also be seen that due to high pollution level there is an increase in sedimentation and this causes higher algae in water that majorly destroys the water to be further being used in any sources (van Kooten, 2018). Moreover, high pollution is increasing global warming as a result water present in Great Barrier Reef is being overheated and due to this there is a high evaporation and this tends to lower the water level.
India’s growing population and the sprouting up of large number of companies has increased the demand for energy. Past activities that were related to usage of natural resources as well as non-renewable resources have led to exhaustion of resources. This has in turn led to an increase of pressure on the Indian companies to look for ways to find a solution to the growing need of energy. As per the opinion of van Kooten (2018), it can be said that exhaustion of energy is a problem of every country across the world. Moreover it has been observed that in spite of the rising trend of utilizing solar energy in India, it has not been found to be satisfactory for the firm. This is because large amount of costs and maintenance expenses is associated with installation of solar panels. Other alternative sources of energy have not been recognised to be viable for the companies in India itself. Therefore it can be said that the firms have found an opportunity in other countries like that of Australia.
However alternative sources of energy should be utilised by the firms instead of threatening the local aboriginal life as well as the environment.
Financial reporting means showing of different concepts of financial accounting within an organisation. In the above study it is concluded that different conflict of interest between incomes is being shown. In addition, it can also be concluded that impact of continuation of project regarding sediment of black coal is being shown in this study. It can be concluded that the impact of carbon emission has majorly polluted the water and increased issues to aboriginal people. In addition, it can also be concluded that due to high carbon emission, Great Barrier Reef is being polluted and the coral reef present are being destroyed one after the other. It has been found out in the study that only water licence and non-availing of subsidies would be the only source of income for both state and federal government.