Sky-High Coal Prices Won’t Spur New Mines in a Greener World
- Prices are surging on global recovery and supply constraints
- Environmental pressures are changing normal market dynamics
A pile of coal at the Port of Newcastle in Newcastle, Australia.
Photographer: David Gray/BloombergThis article is for subscribers only.
The highest coal prices in years aren’t enough to spur investment in new mines in the face of heightened efforts by governments and financial institutions to get the world to abandon the dirtiest fossil fuel.
Prices are surging from China to Europe as demand for coal rebounds from a virus-induced hit, and temporary mine outages curtail supply. Yet companies remain hesitant to invest in new projects with financing difficult to come by and question marks over long-term demand.