Carbon Tracker Report: Coal Power Regulatory Risk [2017]

Carbon Tracker launches a new report, No Country for Coal Gen: Below 2C and regulatory risk for US coal power owners.

The report challenges the economic case for President Trump’s support for the coal industry and finds that phasing out US coal in line with the Paris Agreement would be good for consumers, investors and the wider economy. This is the first study to provide investors with a tool to identify uneconomic coal plants and align their portfolios with the Paris Agreement to keep global warming below 2C. It enables them to challenge coal owners about their plans to manage energy transition risk and avoid losses.

Key findings from the report are that

  • It will soon be cheaper to build new gas than continue running 78% of coal power stations
  • By 2021 consumers will be paying $10bn a year to prop up expensive coal power
  • Investors are exposed to $185bn of regulatory risk ? the difference between the book value of regulated coal plants and their market value
  • A phase-out of coal power in line with the Paris Agreement would reduce the value of listed coal plants by $104bn
  • Five of the 20 largest listed US coal owners would see the value of their coal plants fall by at least half in this scenario

Read the report.