China, India dominate coal ownership as some shun climate risks

2017-05-17 08:45:00 Environmental Protection sxcoal.com

Investors in China and India increasingly dominate ownership of coal reserves amid campaigns for divestment in many rich nations to limit the risks from climate change, Reuters reported, citing a study.


The report, by British-based research group InfluenceMap, identified thousands of shareholders in 117 listed companies producing 3 billion tonnes a year of thermal coal with 150 billion tonnes of reserves.


It said that ownership of thermal coal, used in power plants, was dominated by "strategic investors in China and India (governments, individuals, power companies, special purpose companies)."


Ownership had shifted towards Asia from Europe and North America in recent years, Dylan Tanner, executive director of InfluenceMap, said.


"Coal has been pushed into a corner, stigmatized by the divestment community," said Tanner.


Almost 200 governments pledged at a summit in Paris in 2015 to shift this century from fossil fuels towards renewable energies to curb climate change, and more than 500 major investors have pledged to limit coal investments.


China and India say they will need coal for decades to bolster economic growth even as they try to curb emissions blamed for warming the planet.


As part of the divestment in coal, Norway's sovereign wealth fund and California's CalPERS and CalSTRS pension funds, representing about $1.4 trillion in assets, had sharply cut their ownership of coal since 2010, the study said.


Some investors, however, now see opportunities in coal because U.S. President Donald Trump doubts climate change is man-made and wants to promote fossil fuels from the United States as a cheap source of energy.


Even before Trump's election, some mid-size U.S. and other asset managers "have been bulking up on coal in the last five years in anticipation of a resurgence of some of the remnants of the U.S. coal bankruptcies and growth in Asia," the study said.


The report said that if all the coal reserves identified in the report are consumed, it would release greenhouse gases equivalent to 45% of the gases needed to raise average surface temperatures above an agreed ceiling of 2 degrees Celsius (3.6 Fahrenheit) above pre-industrial times.


(Writing by Jessie Jia   Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Editors Recommendations

1 Coking coal market losing strength in Shanxi 2017-05-26

Coking coal market was on a downward trajectory in China's northern province of Shanxi, as buying interest from downstream sectors shrank amid production cuts ordered by environmental authorities.

2 Sichuan pledges to kick out 100 coal mines in 2017 2017-05-26

China's southwestern province Sichuan plans to shut down 100 mines with production capacity of 13 million tonnes per annum (Mtpa) this year, the local media reported on May 22 in reference with a prov

3 China biggest virtual power plant operated 2017-05-26

The first set of "Source-Grid-Load Smart Grid", built to distribute clean energy on a large scale, has been put into operation in China's eastern province of Jiangsu. This virtual power p

4 Thermal coal prices drop further at south China ports 2017-05-26

Tepid trades on thermal coal continued to bear down on prices of the power generation material at southern China ports, with southern traders mainly in a wait-and-see attitude. A trader f

5 Chinese coal mines' cost curve and profitability analysis in Apr 2017-05-26

The overall profitability at coal mines in China surveyed by sxcoal.com slightly reduced in April, mainly because sliding prices dented profits of thermal coal miners. Profit-making therm

6 An overview of Chinese coking coal import in Apr 2017-05-25

China imported a record high of 8.46 million tonnes of coking coal in April, surging 57.9% year on year, according to data from the General Administration of Customs (GAC) on May 23. The

7 China Coal Daily Track (May 25) 2017-05-25

Thermal coal Domestic market Large coal miners in Yuyang district in Yulin city, Shaanxi province, adjusted up slack coal prices by 10 yuan/t or so amid slightly increased trucks waiting

8 Henan to get major gas facility 2017-05-25

Sinopec, China's largest natural gas storage and logistics center, is expected to start operation in Henan province by the end of 2018, as the country pushes on with a drive to ease the gas shortage d

9 Baogang pushes on with steel expansion 2017-05-25

Steel giant Baogang Group is planning to integrate its overseas operations and expand its market share through the Belt and Road Initiative. The State-owned iron and steel company will se

10 China wind power maintenance industry embraces chances 2017-05-25

With the rapid rise of China's wind power generation, wind power maintenance industry is about to drive into the fast lane. It is estimated the wind power installed capacity will total 15

Most Read Articles

1 Global coal market seen in 16 Mt oversupply in 2017 2017-05-15

The global coal market is forecast to hit an oversupply of 16 million tonnes this year as production increase, Reuters reported on May 14, citing Noble Resources chief coal analyst. "Thos

2 Indonesia coal production seen to increase 5% this year and next 2017-05-15

Indonesia, the world's top thermal coal exporter, could increase production of the fuel used in power stations by 5% in 2017 and 2018, Reuters reported on May 14, citing the country's leading coal

3 Hebei admits more lapses in pollution, overcapacity fight 2017-05-16

China's Hebei province is not properly enforcing policies to cut pollution or reduce chronic overcapacity in major industrial sectors like steel and coal, Reuters reported, citing the environmental bu

4 China determined to push capacity-cut drive 2017-05-15

China is determined to gain some ground on its key battlefield - addressing industrial overcapacity, Xinhua reported. The phasing out of sub-standard production capacity will continue, es

5 Adani to begin producing coal from Australian project in FY21 2017-05-16

Indian conglomerate Adani Group plans to begin extracting coal from the $16.5 billion Carmichael project in Australia in 2020-21, PTI reported on May 14, citing ChairmanGautam Adani.

6 China, India surpass U.S. as most attractive renewables markets 2017-05-16

China and India have surpassed the United States to become the two most attractive countries for renewable energy investment, Reuters reported on May 16, citing a report by UK accountancy firm Ernst &

7 Beijing-Tianjin-Hebei area to totally ban coal burning 2017-05-17

Beijing-Tianjin-Hebei area, China's major high-tech and heavy industrial base, will speed up achieving "zero" coal-burning in this place, announced the Ministry of Environmental Protection (MEP) in a

8 India's coal output expects to boom temporarily 2017-05-17

A report by the Indian government indicates the country will double its coal output to 1.5 billion tonnes by 2020, Power Engineering reported on May 16. As the world's third largest coal

9 Colombia coal output up 3 pct in Q1 2017-05-17

Colombia's coal output increased 3% to 22.2 million tonnes in the first quarter of this year, compared with the same period in 2016, the National Mining Agency said in a statement on May 16.

10 China, India dominate coal ownership as some shun climate risks 2017-05-17

Investors in China and India increasingly dominate ownership of coal reserves amid campaigns for divestment in many rich nations to limit the risks from climate change, Reuters reported, citing a stud