SYDNEY, Nov 3 (Reuters) – U.N. calls to curb greenhouse gas emissions by ending most electricity generation using coal will face some tough challenges, with coal mining going through a growth spurt in countries such as Australia.
The U.N on Sunday released a report saying governments could keep climate change in check at manageable costs but would have to cut greenhouse gas emissions to zero by 2100 to limit risks of irreversible damage.
Although coal is blamed for contributing to climate change and causing large amounts of harmful pollution, it remains by far the most important fuel for power generation at a global share of around 40 percent.
Australian production of thermal coal is forecast to rise by 8 percent over the next two years to 270 million tonnes, according to government figures, confirming the nation as the world’s second’s biggest-exporter after Indonesia.
By fiscal 2018/19, production will reach 290 million tonnes, says the Australian Bureau of Resource and Energy Economics, the government’s forecaster.
Australian growth is expected to continue as companies including Rio Tinto , BHP Billiton and Glencore earmark capital to dig and acquire new mines.
Those companies are banking on projections that use of coal will rise, not fall, in coming decades, creating new markets for Australian collieries.
Glencore in particular is said to be eyeing an even greater presence in Australian thermal coal mining under its chief executive, Ivan Glasenberg, whose recent attempt at a merger with Rio Tinto was largely structured around combining the two companies coal assets, according to people familiar with Glencore’s strategy.
The idea was rebuffed by Rio Tinto.
As coal is a plentiful resource, spread globally, and relatively easy to use in power stations, it is cheaper than other fuels and therefore particularly attractive for emerging economies with fast rising electricity demand.
And Australian Prime Minister Tony Abbott has been a strong advocate of coal, describing it last month as “good for humanity”.
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