Global thermal coal long-term outlook H2 2019: Coal's future diminishing under the allure of economic renewables
The thermal coal market continues to be volatile as various governments around the world implement policies both for and against coal. The Americas and Europe push towards a less carbon intensive future building out renewables and burning natural gas at record levels as they shift from coal. Many of these countries have set deadlines to be “free of coal” and, in some cases, are even moving these deadlines forward. However, in Asia, coal is being embraced as the fuel of economic growth, particularly in India, China and Southeast Asia. These countries are pursuing what was once called the “American Dream” – a middle class built on the wealth generated from manufacturing. They have neither the extensive electric transmission grids nor the gas infrastructure of more developed countries. This often leaves coal as the fuel of choice due to its reliability, low fuel cost, and ability to be placed near demand centres. At least…for now.