Carbon Supply Cost Curves: Evaluating Financial Risk to Coal Capital Expenditures

LAUNCHED on Monday 22nd September 2014.

Our research on coal consists of a package of detailed analyses of coal supply, demand and financial trends.

The accompanying technical papers produced in collaboration with Energy Transition Advisors and the Institute of Energy Economics and Financial Analysis (IEEFA) can be downloaded at the bottom of this page.

Core themes:

Following the oil report, this risk analysis focuses for the first time on the global coal industry, highlighting that $112bn of future capital expenditure (capex) in potential thermal coal production (excluding China) is at risk of becoming stranded.

  • Profits in thermal coal are already hard to find in today’s market. Coal companies are facing greater headwinds all the time with greater energy efficiency, cheaper alternatives and new pollution regulations eroding demand.
  • Future demand and price levels may not meet current industry expectations. High cost coal producers are gambling on survival in the hope that prices will somehow recover.
  • Peak thermal coal demand in China could be imminent. OECD demand is already falling. The resulting oversupply could flood the market, further weakening prices and asset values.
  • Deploying additional capital expenditure into high cost production is risky, especially for new mines, which typically require expensive new rail infrastructure and port facilities to get coal to market.

Find here the report Coal Report – Media Coverage




  • Press Release

    Press Release

  • Coal Financial Trends – ETA Research Paper

    Coal Financial Trends – ETA Research Paper

  • Carbon Supply Coal – ETA Research Paper

    Carbon Supply Coal – ETA Research Paper

  • Coal Demand – IEEFA Research Paper

    Coal Demand – IEEFA Research Paper