A recent legal case could reshape how government-backed financiers report environmental impacts.

Jubilee Australia Research Centre has announced the resolution of its Federal Court action against the Northern Australia Infrastructure Facility (NAIF) and its chairperson. 

The legal dispute, filed in July 2023, challenged NAIF's compliance with statutory obligations to disclose the environmental consequences of its financing activities.

Jubilee discontinued the case after determining that NAIF's 2024 annual report demonstrated “substantial compliance” with legal requirements. 

The report expanded beyond operational impacts, now encompassing environmental effects tied to the projects NAIF funds - a significant shift from prior minimal disclosures, which reportedly focused on internal practices like waste management and printing reduction.

“It now reports on climate change and other environmental impacts, which is an important step towards transparency and climate accountability,” said Dr Suhailah Ali, Jubilee's director of climate justice. 

She noted that, historically, NAIF has supported projects such as the Olive Downs Coking Coal Project, raising concerns about public funds backing fossil fuel developments.

Export Finance Australia (EFA), also under scrutiny in the original filing, adjusted its reporting in 2023 to cover climate and human rights impacts. 

This includes projects like the $4.5 billion Perdaman urea venture, which sources gas from Woodside Energy's contentious Scarborough project.

Critics argue that such progress, while positive, exposes how inadequate environmental reporting was prior to legal intervention. 

“This reporting sets a benchmark for other agencies and financiers to follow,” said Isobel Blomfield, associate at Equity Generation Lawyers, representing Jubilee.

Resources Minister Madeleine King has reportedly amended NAIF’s investment mandate to explicitly require consideration of climate change impacts.

Experts say the findings leave agencies better placed to scale up investments in renewable energy projects.

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