A shift in policy towards cleaner energy has seen a dramatic slowdown in china’s demand for coal

China’s love affair with coal has come to an abrupt end, with figures released last week showing that consumption fell in 2014 for the first time in 14 years.

A combination of slowing industrial growth and a drive by the government in Beijing finally to take emissions and pollution seriously are the main drivers for the slump in the coal market.

The shift in China’s demand could signal that the world’s second-largest economy has reached “peak coal”, whereby the country will make a long-term structural shift away from the dirty fuel towards a greater reliance on natural gas and renewables.

As China accounts for half the world’s demand for “seaborne” coal, and was assumed to be the main driver for new pits for decades to come, now could be the right time for investors to review their exposure to the commodity.

It will also reawaken debate among policymakers about the wider global financial risks that may emerge from a so-called “carbon bubble”, whereby fossil fuel deposits become “stranded”, leaving investors and pension fund holders sitting on massive losses.

To read the full article visit The Telegraph website.