• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 19 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 3 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 11 hours Uniper is over - Germany (Government) buys the Company
  • 22 hours "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 8 hours "How BlackRock Conquered the World" by James Corbett (all 3 parts)
  • 1 day "Oil prices likely not responsible for inflation and other energy insights by hedge fund manager Josh Young" - Kitco News interview by David Lin
  • 1 day The Federal Reserve and Money...Aspects which are not widely known
  • 14 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 7 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 11 days Is Europe heading for winter of discontent with extensive gas shortages?
Why The World Can’t Kick King Coal

Why The World Can’t Kick King Coal

Europe has been one of…

Coal Is Staging A Major Comeback

Coal Is Staging A Major Comeback

The “dirtiest fossil fuel” is…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

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





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News