More than 20 Canadian and international organisations have sent a letter to Canadian Prime Minister Justin Trudeau saying they are concerned that winning a bid for Rio’s coal assets will undermine Canada’s leadership for a global phase-out of coal-fired electricity.
They called on Trudeau to intervene to stop the CPPIB bid for Rio Tinto coal assets in Australia.
The groups' letter to the PM was prompted by reports the CPP is bidding to buy the coal assets of Rio Tinto along with US private equity group Apollo Global Management .
Also in the hunt for the assets is US coal company Xcoal Energy & Resources and a former Glencore executive.
New South Wales-based producer Whitehaven Coal is also an interested party in the sale process, which is being conducted by Credit Suisse.
Friends of the Earth Canada spokesman John Bennett said the Canadian groups wanted the CPPIB to respect Canadian climate change policy in a manner consistent with their adoption of Canadian policy on landmines and human rights.
“Why is the CPPIB ignoring government policy and undermining Canada’s diplomatic efforts to lead a global phase-out of coal?” he said.
“Canada needs clean hands if it is going to convince other countries to phase-out coal but, Canada won't have clean hands if the Canada Pension Plan Investment Board continues buying coal mines.”
