The support for coal throughout the world is in great flux. There are negative messages flying about driven by the desire to decrease the impact on climate change and the overall environment by decreasing the use of this high carbon fuel.
Today’s story in Eco Business.com — Coal at risk as global lenders drop financing on climate — focuses on the financing of future coal power plants and related coal projects: “First it was President Barack Obama pledging in June that the government would no longer finance overseas coal plants through the U.S. Export-Import Bank. Next it was the World Bank, then the European Investment Bank, dropping support for coal projects. Those banks have pumped more than US$10 billion into such initiatives in the past five years.”
The Guardian (UK) also has a pointed story that only adds to the confusion. This gamble on carbon and the climate could trigger a new financial crisis. “At a time when governments are supposedly preparing for a global climate change deal that will cut carbon emissions, energy multinationals are investing in carbon assets like there’s no tomorrow.”
While the future of coal has been shaky for years, there was no viable cost-effective substitute until fracking caused the boom in natural gas production. A classic battle is looming between efforts to protect the environment and the loss of an industry and jobs. While there are deniers, the conflict is growing.U.S. is not waging ‘war on coal’: Energy Secretary Moniz .
Balance these events with efforts by representatives of “coal producing states” fighting for an industry that supplies thousands of jobs in their home communities. W.Va. entourage meets with new EPA director . While coal-fired power plants in the US just may go the way of the dinosaurs in the near future. Usage around the world is not expected to decrease as rapidly and might even increase, especially in emerging economies.
The coal issue is a perfect example of what will become an increasing conflict between a greener more sustainable energy policy and job protection for the status quo. We will be watching these issues very closely. For coal interests it is not over until it is over!