Major Australian coal projects risk losing value due to falling demand from China, where leaders are increasingly concerned about growing public anger over severe air pollution, a new analysis from Oxford University has found. Future coal mining projects are vulnerable to being “stranded” by a range of policy changes from the Chinese government, including environmental regulation, carbon pricing, investment in renewable energy, and energy efficiency, the report said. One expert told The Guardian that global investors are already questioning the prudence of financing new fossil fuel projects. Backers of a handful of upcoming Australian coal projects “should seek clarity” on the associated costs, the Oxford analysis warns. It also cautions that Australian state governments could suffer if projects are mothballed or abandoned. Of particular concern are two mega-mines supported by Australia’s Prime Minister Tony Abbott slated for development in Queensland. Once running at full capacity, the two projects combined would produce enough coal to emit more than 70 millions tons of CO2 a year.
Australian Coal Projects Threatened by Drop in Demand From China
More From E360
-
Oceans
Dire Straits: Can a Fishing Ban Save the Elusive European Eel?
-
Climate
Scientists Are Trying to Coax the Ocean to Absorb More CO2
-
INTERVIEW
Marina Silva on Brazil’s Fight to Turn the Tide on Deforestation
-
Solutions
Solomon Islands Tribes Sell Carbon Credits, Not Their Trees
-
INTERVIEW
With Sea Turtles in Peril, a Call for New Strategies to Save Them
-
RIVERS
Jared Kushner Has Big Plans for Delta of Europe’s Last Wild River
-
Energy
A Nuclear Power Revival Is Sparking a Surge in Uranium Mining
-
OPINION
Despite Official Vote, the Evidence of the Anthropocene Is Clear
-
INTERVIEW
At 11,500 Feet, a ‘Climate Fast’ to Save the Melting Himalaya
-
Oceans
Octopuses Are Highly Intelligent. Should They Be Farmed for Food?
-
Climate
Nations Are Undercounting Emissions, Putting UN Goals at Risk
-
Solutions
As Carbon Air Capture Ramps Up, Major Hurdles Remain