More than 40 percent of world-wide coalworks operate at a loss, says the study
As Donald Trump's administration continues to try to make coal happen, it is becoming increasingly expensive and a serious environmental tax, a new report claims that more than 40 percent of the world's coal power plant is actually operating at a loss. It is a figure that will only climb with increased regulation and carbon pricing, as well as still cheaper renewable energy such as wind and solar energy.
Carbon Tracker, the London-based thinking behind the study, found it to move away from coal as a force. The source is not only a smart move to dampen climate change, but also one that makes sense economically. According to its findings, 42 percent of world-wide plants are not profitable due to steep fuel costs, and the figure can reach more than 70 percent by 2040. New renewable energies, they predict, will be "cheaper than continuing to operate 96 percent of today's existing and planned coalworks. "
" Our analysis shows a least expensive power plant without coal should be regarded as an economic inevitability rather than a clean and green niche, "said Sebastian Ljungwaldh, energy-saving Carbon Tracker and co-author, said in a statement.
In order to reach these figures, Carbon Tracker utilized advanced machine learning and satellite imaging to assess the activity and profitability of 6,685 coal plants across the world, a figure representing 95 percent of total operating capacity and 90 percent capacity during construction. Carbon Tracker said that, in particular, areas like China, which rely on fossil fuel, have little or even contradictory data about these plants, and noted that "for activity level data to be carried out, it must be translated into economic and financial results. "
Moreover, Carbon Tracker said consumers put the bill to keep coal plants that are not economically viable alive. According to the study, moving away from coal can potentially save taxpayers billions.
"The story quickly changes from how much we invest in new coal capacity to how to cut down existing capacity in a way like [minimizes] loss," Matt Gray, Carbon Tracker chief of power and tools, and co-author of the report said in a statement.
We have long known that coal is a dying and increasingly expensive industry. But by breaking the numbers, Carbon Tracker has published a convincing economic argument for coal-phase phase-out.
The report came in front of COP24, a major UN conference on climate change taking place this week in Katowice (which is worth noting also being in the center of Poland's coal region). Washington Post noted that coal is expected to be a primary point of talk that more than 200 countries gather to cope with climate change.
As if the threatening climate crisis is not enough to throw coal to the edge, the potential to save billions certainly makes a convincing case.
[Carbon Tracker]
