• 4 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 7 minutes Middle East on brink: Oil tankers attacked off Oman
  • 11 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 14 minutes The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 2 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 hour Coal Boom in Asia is Real and a Long Trend
  • 1 hour The Plastics Problem
  • 3 hours Hydrogen FTW... Some Day
  • 17 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 6 hours GM Considering Electric Hummer
  • 2 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 14 hours China's President Xi To Visit North Korea This Week
  • 16 hours Forbes: Giant Floating Solar Farms Could Extract CO2 From Seawater, Producing Methanol Fuel.
  • 10 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 20 hours Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 20 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 18 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 13 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
Alt Text

Thermal Coal Prices Are Soaring

With tight supply in key…

Alt Text

Investors Are Turning Their Back On Coal

Investors are increasingly looking away…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

U.S. And Japan Agree To Cut Financial Support For Coal Exports

It is a dark times for coal producers around the world. And the bad news keeps on coming.

The latest is an agreement between the U.S. and Japan to slash financial support for coal exports, a deal reportedly made with an eye towards the Paris climate talks set to take place in December. The U.S. and Japan have long supported overseas buyers of coal through low-cost finance, as a means to boost their own exports of both coal and coal-based technology. In an effort to cut down on greenhouse gas emissions from coal – one of the largest sources of carbon pollution – the U.S. and Japan could end such support.

The proposal would call on all OECD countries to do the same. Japan is the largest supporter of coal-fired power plants around the world, so its support is critical for the deal. Germany, another purveyor of public finance for coal, has also agreed to sign up. Related: Can Fuel Cells Help Clean Up China’s Air?

According to an FT source, if the deal is implemented it could make the “vast majority” of planned coal-fired power plants – as many as 1,000 are on the drawing board – disqualified for accessing government backed low-cost loans. Billions of dollars in finance would be cut off under the deal, allowing only the cleanest coal plants to receive assistance, and only if renewables are not viable. Related: Dividends For Oil Majors No Longer Sacred

The deal has already started to rub some other rich countries the wrong way. Australia, as one of the world’s largest exporters of coal, is seeking to water down the deal. Australia doesn’t issue export credit for coal plants, but benefits from other countries doing so, as financial assistance stokes demand for Australian coal. South Korea is supporting Australia’s counterproposal, which is intended to head off the more stringent deal between the U.S. and Japan.

The OECD funneled an estimated $34 billion into coal projects between 2007 and 2014. If that were to dry up, it would be a huge blow to coal miners from around the world, already reeling from a supply glut and tepid demand. Coal prices are at their lowest levels in years, and the bankruptcy rate in the coal industry is starting to rise.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News