coal

Wed, 2014-11-12 16:40Graham Readfearn
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Coal Companies Avoid Coal When Funding Energy Poverty Projects In Poorest Countries, Report Finds

When the coal industry says its product is the only way the world’s poor can lift themselves from poverty, some people in Australia believe them.

Chief among the industry’s promoters has been the country’s Prime Minister, Tony Abbott, who has said that coal is “good for humanity” and that the energy source and main driver of climate change shouldn’t be “demonised”.

But a new report from progressive think tank The Australia Institute (TAI) has put a looking glass up to the industry’s claims to a glistening future and found what it claims is little more than self-serving industry spin.

The industry has been pushing its supposed concerns for “energy poverty” in media statements, columns, industry presentations, reports and advertising campaigns this year.

According to the International Energy Agency, there are about 1.3 billion in the world without access to electricity and about 2.7 billion without access to clean cooking and heating. Almost all these people live in rural areas in either sub-Saharan Africa or Asia.

The coal industry – led by a PR campaign from the world’s biggest private-sector coal company, Peabody Energy – has been using the energy poverty issue as way to lobby investors and world leaders.

But the TAI report – All Talk, No Action – finds that the industry’s claim are largely misrepresenting the current economic climate and forecasts for the future.

Tue, 2014-11-11 10:00Mike Gaworecki
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Peabody Energy Goes On Offense With New PR Campaign Designed To Sell Same Old Dirty Coal

Despite what you may have heard about the death of the coal industry, Peabody Energy is ramping up mining activities and going on the offensive, pushing “clean coal” on the world’s poor with a disingenuous but aggressive PR campaign. And for good reason: Peabody has got to sell the coal from the world's largest coal mine to someone.

Speculation is rife that the new GOP-led Senate will join with its similarly fossil fuel-beholden House colleagues to usher in a new era of coal. Peabody, the world’s largest privately held coal company, isn’t waiting around to find out.

The company has teamed with public relations firm Burson-Marsteller—the notorious PR giant that helped Big Tobacco attack and distort scientific evidence of the dangers of smoking tobacco—to launch Advanced Energy for Life, a desperate attempt to shift the discussion around coal away from its deleterious effects on health and massive contributions to climate change and instead posit the fossil fuel as a solution to global poverty.

The aim of this PR offensive, according to a piece by freelance journalist Dan Zegart and former DeSmog managing editor Kevin Grandia (one of Rolling Stone’s “Green Heroes,” and deservedly so), the reason for Peabody’s charm offensive is simple: there’s money to be made selling coal in Asian markets, and Peabody aims to make it—as long as initiatives to combat global warming emissions don’t intervene. Which makes Burson-Marsteller the perfect ally:

Burson-Marsteller, which has a long history of creating front groups to rehabilitate the images of corporate wrongdoers, helped Philip Morris, maker of Marlboro, tackle the Asian market, where Burson fought anti-smoking regulations and developed crisis drills for Philip Morris personnel in Hong Kong on how to handle adverse scientific reports.
 

As the US produces a glut of cheap natural gas, the EPA’s Clean Power Plan seeks to set emissions standards that would make building new coal-fired power plants all but impossible impossible, and the domestic demand for coal drops, Peabody’s value as a company has dropped as well, from $20 billion to just $3.7 billion in the space of three years. The company is in desperate need of new business if it’s to even stay afloat.

Tue, 2014-11-04 04:00Sharon Kelly
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Marcellus Shale Fracking Rush Brings Worries of Boom-Bust Cycle

Across the U.S., the shale gas industry's arrival has been marked by wariness, not only of the environmental impacts associated with fracking, but also due to the oil and gas industry's long history of flashy booms followed by devestating busts.

In towns across the state, the lingering effects of past economic downturns – the flight of manufacturing, the 2008 financial collapse, the slow erosion of the auto and steel industries – have left communities eager for jobs, but also experienced with job loss.

Nowhere better illustrates the potential for a shale rush to heal old economic wounds, or communities' vulnerability to new ones, than Cameron County, Pennsylvania. At the eastern edges of the rust belt, Cameron County has been hit hard by the decline of the American auto industry.

Hopes for a shale renassiance are running up against some difficult realities. A report released Monday by the Post-Carbon Institute, titled “Drilling Deeper: A Reality Check on US Government Forecasts for a Lasting Tight Oil & Shale Gas Boom,” concludes that the Marcellus shale is unlikely to fully live up to government forecasts, and that natural gas prices will have to rise to keep drilling going across the state. The vast majority of the Marcellus shale is not the same high quality as the areas where drillers are currently focusing most of their efforts, referred to in the industry as “sweet spots,” making the gas there more expensive to produce.

The report also finds that shale gas production in the Marcellus is expected to reach it's peak in 2018 or 2019 – meaning that within five years, production will begin dropping. “These projections are optimistic in that they assume the capital will be available for the drilling treadmill that must be maintained to keep production up,” the report says. “This is not a sure thing as drilling in the poorer quality parts of the play will require higher gas prices to make it economic.”

Thu, 2014-10-30 17:00Chris Rose
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World’s Major Banks Poured Over $80 Billion into Coal Last Year Alone

At least $83 billion USD in financing was provided to 65 coal mining and energy companies last year by 92 of the world’s leading commercial banks, according to a Dutch report published Wednesday.

Leading banks provided $500 billion in financing for the coal industry through 2,283 lending and underwriting transactions between 2005 and April 2014, said the report Banking on Coal 2014, which was released by BankTrack in Nijmegen.

The top 20 financiers provided 73 per cent of this amount alone, added the report, released just days ahead of the publication of the fifth United Nations Intergovernmental Panel on Climate Change (IPCC) assessment.

The report said JPMorgan Chase was the top financier between 2005 and this year, lending more than $27 billion, while Citi, in second place, lent $25.8 billion and third-place RBS provided $22.9 billion to coal-related borrowing.

Bank finance for coal is increasing rapidly, the report said, adding 2013 was a record year for coal finance, with commercial banks providing more than $88 billion to the main 65 coal companies – over four times the amount provided in 2005.

Mon, 2014-10-27 11:33Emma Gilchrist
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B.C. LNG Strategy Won’t Help Solve Global Climate Change: New Pembina Institute Report

Christy Clark at LNG Canada announcement

The B.C. government’s claim that LNG exports offer the “greatest single step British Columbia can take to fight climate change” is inaccurate in the absence of stronger global climate policies according to a new report released today by the Pembina Institute and the Pacific Institute for Climate Solutions.

Natural gas does have a role to play in a world that avoids two degrees Celsius in global warming, but only if strong emissions reduction policies are put in place in the jurisdictions that produce and consume the gas, says the report, LNG and Climate Change: The Global Context authored by Matt Horne and Josha MacNab.

Natural gas is often described as a bridge fuel. The question is, how long should that bridge be?” says MacNab, B.C. regional director for the Pembina Institute, a national non-profit focused on transitioning Canada to a clean energy future.

Our research suggests it must be very short if we’re going to be able to get off the bridge in time to avoid the worst impacts of climate change.”

Thu, 2014-10-16 20:24Graham Readfearn
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Coal One of 'Greatest Products In History' Says Australian Coal Industry Figure

THE Australian newspaper has run a free advertisement today for the coal industry in the form of an op-ed column by a leading industry figure that says that coal is one of the best things ever.

And no I'm not exaggerating.

New South Wales Minerals Council chief executive Stephen Galilee, a former advisor to several high-ranking Liberal Party politicians including the now Prime Minister Tony Abbott, writes in The Australian that coal is “one of the greatest overall products in ­history” and is just totally awesome (he didn't use the word awesome, that was me).

Galilee's column in the Murdoch-owned newspaper is the latest repetition of the industry's favourite PR line that coal can end global poverty.

Tony Abbott, the environment minister Greg Hunt and the Treasurer Joe Hockey have all used this coal industry line in recent weeks.

I've written about the industry's attempt to lobby the G20 for The Guardian and looked at Hockey's recent contribution for DeSmogBlog. You should go and read those pieces because they are among the greatest overall products blogs in history.

Wed, 2014-10-15 18:28Graham Readfearn
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Australian Treasurer Joe Hockey Latest Minister To Tout Coal Industry "Energy Poverty" Spin

Australia's Treasurer Joe Hockey barely missed a beat when challenged to justify the country's massive fossil fuel export industry and bottom-dwelling record for domestic greenhouse gas emissions.

“We are exporting coal so that nations can lift their people out of poverty,” the Liberal Treasurer told the journalist Stephen Sackur on the BBC's HARDTalk interview program.

Hockey's argument should be recognised for what it is - a line straight out of the coal industry's newest campaign playbook.

As I wrote earlier this week on The Guardian, the coal industry is attempting to hijack the issue of “energy poverty” by claiming the only way that the world's poorest can prosper is by purchasing and then burning more of their product.

The United Nations Environment Programme wouldn't agree. In a summary report of climate change impacts, UNEP says: “In Africa and other developing regions of the world, climate change is a threat to economic growth (due to changes in natural systems and resources), long-term prosperity, as well as the survival of already vulnerable populations.”
 
The latest Intergovernmental Panel on Climate Change report on the impacts of climate change found climate change would “exacerbate multidimensional poverty” in most developing countries and create “new poverty pockets” in both rich and poor countries.
Fri, 2014-10-10 09:53Sharon Kelly
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A Shift from Fossil Fuels Could Provide $1.8 Trillion in Savings, Two New Reports Conclude

A worldwide transition to low carbon fuels could save the global economy as much as $1.8 trillion over the next two decades, according to two reports published Thursday by the Climate Policy Initiative.

By switching to renewable energy sources, the high costs associated with extracting and transporting coal and gas could be avoided, the reports, titled Moving to a Low Carbon Economy: The Financial Impact of the Low-Carbon Transition, and Moving to a Low Carbon Economy: The Impact of Different Policy Pathways on Fossil Fuel Asset Values, conclude.

This would free up funds to bolster financial support for wind, solar and other renewables – with enormous sums left over, the reports conclude. Following an approach aimed at capping climate change at 2 degrees Celsius will require walking away from massive reserves of fossil fuels, stranding the assets of major corporations, many researchers have warned. The new reports give this issue a closer look, demonstrating that more than half of the assets at risk are actually owned by governments not corporations.

This finding could be double-edged, since that means taxpayer money in many countries is at stake and those governments have the power to establish policies that could promote or repudiate the fossil fuels they control. But the reports' conclusion that trillions could be freed up if governments and private companies abandon those assets could make it easier for governments to leave those fossil fuels in the ground.

Wed, 2014-10-01 13:00Chris Rose
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Tide Turning Against Global Coal Industry: New Report

Coal plant

Coal, the fossil fuel that largely sparked the industrial revolution, may be facing the beginning of the end — at least in terms of generating electricity.

There are increasing signs of the demise of the world’s dirtiest fossil fuel, from a global oversupply to plummeting prices to China starting to clean up its polluted air.

Last week, the Carbon Tracker Initiative published an analysis — Carbon Supply Cost Curves: Evaluating Financial Risk to Coal Capital Expenditures — identifying major financial risks for investors in coal producers around the world.

Saying the demand for thermal coal in China, the world’s largest emitter of toxic greenhouse gases, could peak as early as 2016, the analysis also highlights $112 billion of future coal mine expansion and development that is excess to requirements under lower demand forecasts.

Thu, 2014-09-25 07:00Farron Cousins
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West Virginia Officials Worried Freedom Industries Skimping On Chemical Spill Cleanup

In early January of this year, a chemical storage facility run by Freedom Industries ruptured and leaked thousands of gallons of chemicals into West Virginia’s Elk River. The leak occurred less than 2 miles from a water treatment plant that serves as many as 300,000 nearby residents. 

Almost 9 months after the spill occurred, West Virginia officials are concerned that Freedom Industries is dragging their feet on the cleanup.

The West Virginia Department of Environmental Protection (DEP) said that the company needs to be focused on actually cleaning up the spill instead of focusing on entering a “voluntary” remediation program.

The comments came a few days after Freedom Industries submitted an updated remediation proposal to the DEP outlining their plan to start digging and testing soil and water samples in the future. To date, the company has not even finished demolishing their outdated and dangerous storage tanks that caused the spill in the first place. 

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