Coal is Dead...and Renewable energy is the future!
Not even Donald Trump can stop the decline of coal as an energy source, despite his political
rhetoric. Most people know that Donald Trump is all smoke and bluster, and he said a lot of things that just were not true just to win votes to gain his election as President of the United States.
The fact is Coal has been in decline since renewable energy alternatives became cheaper.
For over 100 years Coal has been the main driver of economic growth in the developed world and powering the industrial revolution. Due to climate change and more efficient renewable energy sources, old fossil fuel energy sources like coal are falling dramatically out of favour as an energy source.
Change in demand
The demand for coal as an energy source has been in decline for over a decade. Plant closures, cheap natural gas from Russia and fracking in the US and the onset of Renewable energy has meant coal as an energy source has reduced by 28% in a decade.
COAL CONSUMPTION CHART
Coal is known to be a very dirty fuel source for a good reason. When you compare the CO2 emissions produced by the top 5 dirty fuels coal is by far the dirtiest.
This is how much carbon dioxide is produced when different fuels are burned.
Fossil Fuel Divestment
The Catholic church and other faith based funds have already taken steps to divest from fossil fuel investments. Other major institutions like banks and insurance companies have pledged to divest their funds from fossil fuels almost immediately. The Dutch multinational bank ING recently announced its intention to reduce the banks exposure to coal power generation down to close to zero by 2025. Specifically, by the end of 2025 ING will no longer finance clients in the utilities sector that have over 5% on coal-fired power in their energy mix.
In December, AXA announced that it has decided to increase its divestment from fossil fuels by five-fold to €2.4 billion. AXA also announced that they would divest over €700 million from the main oil sands producers and associated pipelines, and discontinuation of further investments in these businesses.
Additionally, AXA announced back in 2015 a commitment to reach €3 billion in green investments by 2020.
Considering that AXA already reached this target, the group has decided to quadruple its original target and aim for €12 billion by 2020.
With this growing shift away from Fossil fuel as an energy source and the shift by major wealth funds and institutions towards renewable energy it presents an ideal opportunity for investors to benefit from this shift towards renewable energy. There is no doubt that this trend will continue and now is a great time to profit from an ethical investment like Biomass energy or Solar energy.