To be clear, 8x is an enabler of further coal mine expansions in Queensland, which already is the top provincial coal exporter of the world. Coincidentally, the government of Queensland is the other major institutional owner of DBI and is actively seeking to expand the coal mining output of the state.
We believe that there are three potential outcomes to this.
First, Brookfield could use Global Transition Fund money to pay Brookfield Infrastructure investors to move to cancel the 8x expansion and shut the thermal coal capacity at DBI. Second, Brookfield unconditionally applies its communicated climate policy in a full balance sheet approach and moves to cancel the 8x expansion and thermal coal capacity at DBI. Or finally, Brookfield continues to work for the 8x expansion and thermal coal business to continue at DBI and thus get in competition for “Most Egregious Greenwash” award of the decade.