• Wednesday, 22 November 2017

Coal Industry Haunted By COP21 Aggreement

coal mining

COP21 aggreement in Paris on last December still renounces several questions. The biggest question among them all is what will happen with the future of coal industry? Nevertheless, fuel-fossil energy likes coal is the culprit in this global climate issue. According to the hearing on that conference, fuel-fossil energy especially coal was the main “donors” which created greenhouse effect.

Two largest countries who contributed in carbon emission were China and United States. Both of them are coal users especially China which is now pumping its industry in order to compete with other countries. Coal became China’s tools to push the economic growth and contributed the largest carbon emission, approximately 24 percent higher than the US.

It cannot be denied that the aggreement has a devastating impact to the coal market. Based on Goldman Sachs analysis, coal industry still holds 35 percent of world market share. However, they said that its market share has declined about 9 percent since 2009. Even Goldman Sachs has predicted, all coal market share will meet further declined in 2018. They analyzed that coal market value will only be 33 percent of world market share on that year.

The result of COP21 insisted all involving country had to make energy diversification especially in renewable energy. Think tank group such as 350.org and Divest-Invest shared interesting data which explained the emerging investment of renewable energy among 500 top companies. They began to invest in non fossil-fuel energy. Solar, hydro and wind energy also cheap gas were the most popular investment. According to them, the number of investors were increasing and far better than last year. One year ago, only 181 organizations in the world who liked to invest in renewable energy.

The future of coal industries seem uncertainty. The growing number of investment in energy diversification gave a straight punch to them. Allianz, the largest insurance company in Germany agreed to pull its investment about 4,3 billion US dollar from several coal companies. Furthermore, Norwegian government also pulled its 30 percent share from company and started to invest in renewable energy.

Nevertheless, Benjamin Sporton, chief of World Coal Association had another opinion. He wasn’t disturbed by the uncertainty that would come to the global coal industry. One reason why he was so confident that South East Asian countries are much dependent on it. “South East Asian countries are still using coal to generate power for the electricity,” he said. In addition, he also concluded that Indian government renewed many important contracts with coal company to support their electric infrastructure.

Iqbal Ramadhan

Graduated from UNPAD International Relations Post Graduate Program. Having a passion in social studies, journalism, security studies and cyber risk.