The UN climate agreement collapses the shares of coal companies Coal stocks plunged on November 15 after the end of the climate summit (Cop26) and the publication of the final agreement – the Glasgow Climate Pact.
Shares in major Chinese thermal coal companies China Shenhua Energy and Yanzhou Coal fell 1.7 percent and 4 percent, respectively, data from the Hong Kong Stock Exchange showed. In Indonesia, the world leader in the export of this fuel, shares of the largest coal company Bumi Resources fell 5.7 percent, according to the Indonesian Stock Exchange. Shares in the country's other major producers, Adaro Energy and Indika Energy, fell 5.3 percent and 6.9 percent, respectively. The collapse in the value of these shares was also due to the growth of coal production in China, which was previously heavily dependent on Indonesian fuel.
In Australia, steam coal company Whitehaven Coal fell 2.4 percent, while rival New Hope fell 1.5 percent. Australian miners South32 and Coronado Global Resources fell 2 and 4.3 percent, respectively. The value of shares in Russian coal companies has not changed significantly since the end of the Glasgow summit.
The UN climate talks in Glasgow ended on November 13. On this day, an agreement was signed on the further use of fossil fuels. Although initially the participating countries planned to spell out a complete rejection of coal in the treaty, after the objections of China and India, the final wording was softened – the states decided to “gradually reduce” its use, writes Reuters.
In addition, about 50 countries- The participants agreed to switch from using coal-fired power plants to clean energy, as well as to stop issuing permits for new coal projects. Russia, China and the United States refused to sign the agreement. More than 200 states took part in the conference. “The reality is that coal will only be used for the next decade or so,” Matan Somasundaram, chief executive officer of Sydney-based research firm Deep Data Analytics, told Reuters.