Jubilee Australia Research Centre, an environmental and human rights organisation, recently announced the conclusion of its legal action against the Northern Australia Infrastructure Facility (NAIF) and its board of directors. 

The Federal Court of Australia action, filed in July 2023, alleged both NAIF and Export Finance Australia (EFA) failed to comply with their legal obligations to report on the environmental impacts of projects funded with taxpayer money.

NAIF, which controls A$7 billion in taxpayer funds, in the past has financed fossil fuel projects, including coal and fracking ventures, such as the Olive Downs Coking Coal Project, that may not have proceeded without government-backed loans. 

Reflecting on the outcome, Dr Suhailah Ali, Director of Climate Justice at Jubilee Australia, said:

“Jubilee Australia welcomes the conclusion of this Federal Court case and is pleased to note that since it was filed neither EFA or NAIF have funded any major fossil fuel project.”

Further, Dr Ali said:

“NAIF now recognises the environmental impacts of the projects it supports with taxpayer money. It now reports on climate change and other environmental impacts, which is an important step towards transparency and climate accountability.” 

An assessment of environmental impacts means that agency Boards must fully consider the impacts in decision-making.

The case was also brought against EFA, Australia’s export credit agency, which was resolved in early 2024. You can read Jubilee Australia’s statement here.  

After the case was filed, Resources Minister Madeleine King amended NAIF’s investment mandate requiring NAIF to consider climate change impacts. NAIF has substantially changed its approach to the governance of climate risk.  

Dr Ali said: 

“This positive change to reporting and governance is not only a win for environmental accountability but also a critical step in ensuring that government financial support is directed toward projects that prioritise sustainability, climate-risk and respect for Indigenous rights. We hope this case will inspire other government agencies and financiers to adopt similar standards and practices in their operations."

Jubilee Australia was represented by Equity Generation Lawyers.

You can read more about the case in this Canberra Times article by AAP journalist Marion Rae.