Globally, coal mining companies are on the edge of the financial abyss and more planned coal plants are being cancelled than built, according to a new report released today by WWF. Ever cheaper renewable energy is attracting more investment than coal. In 2014 59 per cent of net additions to global power capacity were from renewable energy – nearly 80 per cent in Europe.
The financial sector in many parts of the world is also moving rapidly away from coal. Major institutional investors such as AXA, Aviva, California’s state pension funds, the city of Oslo’s pension funds and the Norwegian Sovereign Wealth Fund are divesting from coal. Banks such as Credit Agricole and Bank of America are reducing their lending to coal.
The report shows that coal is caught in a perfect storm. Concerns about climate change, the environment and health impacts have increasingly incited governments to impose regulations on its use.
The coal industry is, in short, in terminal structural decline. In order to limit global warming to well below 2 degrees, as the science recommends, that decline will need to accelerate.
Samantha Smith, leader of WWF’s Global Climate and Energy Initiative said, “Burning coal is the largest single contributor to climate changeand we must phase it out if we want to achieve any of the goals currently under discussion here in Bonn at the UN climate negotiations.
“Public money from developed countries should not go to coal, either as export credits or so-called climate finance. Increasingly governments and financial institutions are turning their backs on it and the industry is in decline. Wealthier governments should fund the solutions and put their efforts into financing a rapid and just transition into renewable energy and energy efficiency,” said Smith.
Jan Vandermosten, Policy Officer at WWF’s European Policy Office said, “We are witnessing an energy transition. The increasing competitiveness of renewable energy has further undermined the attractiveness of coal investments, to a point of no return.
“In 2014 China’s coal consumption dropped for the first time, the United States is closing its coal plants and energy giants like E.ON and RWE are now changing their businesses towards renewables. These events are creating momentum for the Paris climate agreement and the adoption of a new climate regime,” he said.
Highlights from the report include:
Chinese coal consumption dropped by 2.9 per cent in 2014 – This reduction, which represents more than the annual UK coal consumption, came on the back of structural economic reform and a deliberate choice by the Chinese government to move towards a more sustainable energy mix.
The EU and USA move towards the end of coal – The share of coal in their energy mix is falling quickly, and this trend will continue in light of tighter legislations.
Coal mining companies are on the verge of the abyss – Decreasing demand and low coal prices are squeezing coal mining companies’ profits across the globe. There are no signs of relief ahead, as major emerging economies – most prominently China – start to take steps to limit coal consumption within their boundaries.
Coal utilities are caught in a death spiral – The global coal plant construction boom is turning to bust. European utilities notably (E.ON, Enel, RWE) are forced to change their business model in light of the fast development of renewable energy.
Renewables are on the rise – Investments in solar and wind energy surged in 2014, and renewables represented more than half (59 per cent) of 2014 net additions to global power capacity for the first time ever.
Coal divestment is spreading to mainstream financial institutions – The Norwegian Sovereign Wealth Fund and Axa (amongst others) decided to move their investment out of coal while Credit Agricole and Bank of America ended or reduced their coal lending – giving a clear signal that the trust of the financial institutions in the sector is waning quickly.
7 New Technologies That Could Radically Change Our Energy Consumption
Most of our focus on technological development to lessen our environmental impact has been focused on cleaner, more efficient methods of generating electricity. The cost of solar energy production, for example, is slated to fall more than 75 percent between 2010 and 2020.
This is a massive step forward, and it’s good that engineers and researchers are working for even more advancements in this area. But what about technologies that reduce the amount of energy we demand in the first place?
Though it doesn’t get as much attention in the press, we’re making tremendous progress in this area, too.
New Technologies to Watch
These are some of the top emerging technologies that have the power to reduce our energy demands:
- Self-driving cars. Self-driving cars are still in development, but they’re already being hailed as potential ways to eliminate a number of problems on the road, including the epidemic of distracted driving ironically driven by other new technologies. However, even autonomous vehicle proponents often miss the tremendous energy savings that self-driving cars could have on the world. With a fleet of autonomous vehicles at our beck and call, consumers will spend less time driving themselves and more time carpooling, dramatically reducing overall fuel consumption once it’s fully adopted.
- Magnetocaloric tech. The magnetocaloric effect isn’t exactly new—it was actually discovered in 1881—but it’s only recently being studied and applied to commercial appliances. Essentially, this technology relies on changing magnetic fields to produce a cooling effect, which could be used in refrigerators and air conditioners to significantly reduce the amount of electricity required.
- New types of insulation. Insulation is the best asset we have to keep our homes thermoregulated; they keep cold or warm air in (depending on the season) and keep warm or cold air out (again, depending on the season). New insulation technology has the power to improve this efficiency many times over, decreasing our need for heating and cooling entirely. For example, some new automated sealing technologies can seal gaps between 0.5 inches wide and the width of a human hair.
- Better lights. Fluorescent bulbs were a dramatic improvement over incandescent bulbs, and LEDs were a dramatic improvement over fluorescent bulbs—but the improvements may not end there. Scientists are currently researching even better types of light bulbs, and more efficient applications of LEDs while they’re at it.
- Better heat pumps. Heat pumps are built to transfer heat from one location to another, and can be used to efficiently manage temperatures—keeping homes warm while requiring less energy expenditure. For example, some heat pumps are built for residential heating and cooling, while others are being used to make more efficient appliances, like dryers.
- The internet of things. The internet of things and “smart” devices is another development that can significantly reduce our energy demands. For example, “smart” windows may be able to respond dynamically to changing light conditions to heat or cool the house more efficiently, and “smart” refrigerators may be able to respond dynamically to new conditions. There are several reasons for this improvement. First, smart devices automate things, so it’s easier to control your energy consumption. Second, they track your consumption patterns, so it’s easier to conceptualize your impact. Third, they’re often designed with efficiency in mind from the beginning, reducing energy demands, even without the high-tech interfaces.
- Machine learning. Machine learning and artificial intelligence (AI) technologies have the power to improve almost every other item on this list. By studying consumer patterns and recommending new strategies, or automatically controlling certain features, machine learning algorithms have the power to fundamentally change how we use energy in our homes and businesses.
Making the Investment
All technologies need time, money, and consumer acceptance to be developed. Fortunately, a growing number of consumers are becoming enthusiastic about finding new ways to reduce their energy consumption and overall environmental impact. As long as we keep making the investment, our tools to create cleaner energy and demand less energy in the first place should have a massive positive effect on our environment—and even our daily lives.
Responsible Energy Investments Could Solve Retirement Funding Crisis
Retiring baby-boomers are facing a retirement cliff, at the same time as mother nature unleashes her fury with devastating storms tied to the impact of global warming. There could be a unique solution to the challenges associated with climate change – investments in clean energy from retirement funds.
Financial savings play a very important role in everyone’s life and one must start planning for it as soon as possible. It’s shocking how quickly seniors can burn through their nest egg – leaving many wondering, “How long your retirement savings will last?”
Let’s take a closer look at how seniors can take baby steps on the path to retiring with dignity, while helping to clean up our environment.
Tip #1: Focus & Determination
Like in other work, it is very important to focus and be determined. If retirement is around the corner, then make sure to start putting some money away for retirement. No one can ever achieve anything without dedication and focus – whether it’s saving the planet, or saving for retirement.
Tip #2: Minimize Spending
One of the most important things that you need to do is to minimize your expenditures. Reducing consumption is good for the planet too!
Tip #3: Visualize Your Goal
You can achieve more if you have a clearly defined goal in life. This about how your money can be used to better the planet – imagine cleaner air, water and a healthier environment to leave to your grandchildren.
Investing in Clean Energy
One of the hottest and most popular industries for investment today is the energy market – the trading of energy commodities. Clean energy commodities are traded alongside dirty energy supplies. You might be surprised to learn that clean energy is becoming much more competitive.
With green biz becoming more popular, it is quickly becoming a powerful tool for diversified retirement investing.
The Future of Green Biz
As far as the future is concerned, energy businesses are going to continue getting bigger and better. There are many leading energy companies in the market that already have very high stock prices, yet people are continuing to investing in them.
Green initiatives are impacting every industry. Go Green campaigns are a PR staple of every modern brand. For the energy-sector in the US, solar energy investments are considered to be the most accessible form of clean energy investment. Though investing in any energy business comes with some risks, the demand for energy isn’t going anywhere.
In conclusion, if you want to start saving for your retirement, then clean energy stocks and commodity trading are some of the best options for wallets and the planet. Investing in clean energy products, like solar power, is a more long-term investment. It’s quite stable and comes with a significant profit margin. And it’s amazing for the planet!
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