New Report Questions What’s Next for Australia’s Coal Sector

In a study set to be released today, the University of Oxford’s Stranded Assets Programme looks at what China’s changing demand for coal will mean for Australia’s coal assets, a question that has been on the minds of many market participants of late.

Ben Caldecott, co-author of the report and director of the Stranded Assets Programme, said:

China’s demand for coal is changing as a result of environment-related factors, including environmental regulation, developments in cleaner technologies, air pollution, improving energy efficiency, developments in gas markets and political activism.

This could lead to less demand from China and lower coal prices, which would increase the risk that Australian coalmines, reserves and coal-related infrastructure become stranded assets.

These developments are not factored into the positions that most coal owners and operators are currently taking. Policy makers need to wake up to these risks as well

Click here to read the full press release.