Montana, where there is a lot of coal, is feeling the economic impact of the 
loss of coal jobs, but I still see the coal trains going through town, on the 
way to the coast and Asia.

Chris  

 

 

From: BILROJ via Centroids: The Center of the Radical Centrist Community 
[mailto:[email protected]] 
Sent: Sunday, April 17, 2016 8:55 AM
To: [email protected]
Subject: [RC] Coal use in rapid decline

 

 

 

 

 

 


Coal’s decline has been a slow burn that suddenly seems to be picking up


Written by


Cassie Werber <http://qz.com/author/cwerberqz/>  

April 15, 2016 

 

 

So long?

Reuters

 

If you wanted to tell the story of coal in one line, it would look like this:

  <https://www.theatlas.com/i/atlas_Hyb8rPC.png> 

Commodity prices fall for two big, connected reasons. Either there’s too much 
of the thing available, or the markets that wanted it before now want less. Of 
course, one often drives the other, and for coal, both are the case. Cleaner 
technologies, supported by international climate legislation, are taking over 
from dirtier ones—and coal is the dirtiest.

The shift happened first in more developed economies, but developing ones were 
still burning the black stuff. Now, they’re stopping, too.

All of this looks to be accelerating the decline of the coal industry, which 
just had a truly awful week.


Exhibit A


On April 13, Peabody Energy Corp., the world’s largest privately owned coal 
company, filed for bankruptcy 
<https://www.newscientist.com/article/2084292-whats-behind-bankruptcy-of-worlds-largest-private-coal-firm/>
  in the US. It was the last chapter in a story of structural decline that 
began as early as 2011.

  <https://www.theatlas.com/i/atlas_B1WIKD0.png> 

The first market the company lost was at home. Over the last five years, shale 
gas has flooded into the US market, providing an alternative that was both 
cleaner, and helped energy companies get in line with incoming or anticipated 
legislation on emissions. The company sought other markets. But last year 
China, the biggest user of coal in the world, began to cut its consumption—in 
part because of its economic slowdown, and in part because of its own climate 
goals.

US firms are by no means alone in seeing their coal companies struggle. The UK 
closed its last working coal mine 
<http://www.politico.eu/article/last-day-of-coal-mining-in-britain/>  in 
December 2015. Subject to heavy environmental constraints, most of its 
remaining coal plants must close by 2020 or convert—as the massive Drax plant 
is doing 
<http://qz.com/471288/the-uks-top-polluter-wants-to-be-its-biggest-renewable-energy-producer/>
 —to burn something other than coal. Eastern Europe has held out as a bastion 
of coal-burning on the continent, but this week the dire state of its industry 
was also revealed. Talks have taken place in the Czech Republic and Romania on 
how to prop up the loss-making mines, or help them through the process of 
shutting down, Politico reports 
<http://www.politico.eu/pro/europe-chokes-on-coal/http:/www.politico.eu/pro/europe-chokes-on-coal/>
 .


Exhibit B


Sentiment continues to turn against coal. Norway’s massive sovereign wealth 
fund (containing $860 billion, much of which has been generated through the 
countries oil revenue) began divesting from some fossil fuel companies in 2015.

On April 14, it said it would stop investing 
<http://www.bloomberg.com/news/articles/2016-04-14/norway-s-860-billion-fund-drops-52-companies-linked-to-coal>
  in 52 companies linked to coal (including Peabody, a little late).

The decision isn’t purely ethical. Investors in fossil-fuel reserves don’t want 
to be left with “stranded assets,” or reserves that will be impossible to burn 
because of future legislation or emissions restrictions. In a speech this week 
in Oxford, UK, Al Gore, the former US vice president and a high-profile climate 
campaigner, said these unburnable assets were worth $22 trillion 
<http://www.bloomberg.com/news/articles/2016-04-14/norway-s-860-billion-fund-drops-52-companies-linked-to-coal>
 .


Exhibit C


The investment that used to go into coal is going increasingly to renewables. 
In 2015, investment in renewables was double that for coal and gas combined, 
according to a study 
<http://www.bloomberg.com/news/articles/2016-04-14/norway-s-860-billion-fund-drops-52-companies-linked-to-coal>
  (pdf, p.11) from the Frankfurt School of Finance and Management.

Also this week, the sun provided 
<http://www.theguardian.com/environment/2016/apr/13/solar-power-sets-new-british-record-by-beating-coal-for-a-day>
  more power to British homes than coal for the first time in history (though 
admittedly only on one single day). For one month last year 
<http://qz.com/454751/coal-wasnt-the-main-source-of-american-electricity-for-one-month-this-year-for-the-first-time-ever/>
 , coal wasn’t the biggest producer of US energy, for the first time ever.

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