Coal

Don’t dump on U.S. coal plan. Make it better!

11 Nov 2022

Sceptics fear an American plan to use voluntary carbon markets to accelerate the energy transition in poor countries, unveiled at COP27, could amount to greenwashing. But done properly, it could help developing markets close down coal plants, a major source of pollution.

Capital Calls: Coal’s fear-then-greed trade

19 Oct 2022

Concise views on global finance: Shares of Aussie coal miners fell on production disruptions from floods, only to quickly rise as investors bet on tighter supplies and higher prices.

Ukraine has more pluses than minuses for climate

26 Sep 2022

The Russian invasion has prompted other countries to boost gas production and burn more coal. Climate diplomacy is on ice. But this crisis will also prompt a dash for cheaper and more secure renewable energy. That helps the fight to slow global warming, says Hugo Dixon.

Capital Calls: T-Mobile US transmits clear signal

9 Sep 2022

Concise views on global finance: The telecom carrier is planning a $14 bln buyback program as it beats rivals in shareholder return.

Singapore deal offers template for offloading coal

6 Sep 2022

Banks’ aversion to fossil fuels makes it hard for companies to sell dirty assets. So Temasek-backed Sembcorp is financing its own $1.5 bln Indian disposal with an interest rate that falls if emissions do and guaranteeing loans. It’s a more responsible way to get the job done.

ESG is more of a muddle than a fiddle

19 Jul 2022

Environmental, social and governance investing is under the spotlight. In this episode of The Exchange podcast, Bridgewater’s sustainable finance gurus Karen Karniol-Tambour and Carsten Stendevad explain how ESG’s main problem is a lack of clarity over its goals.

Capital Calls: China and Australian coal

7 Jun 2022

Concise views on global finance: Chinese coal miner Yankuang Energy may have to increase its offer to Yancoal Australia’s minority shareholders.

Glencore rebuff sets up less noxious coal deal

2 Jun 2022

The trader calls a Chinese offer for the 38% of Aussie miner Yancoal it doesn’t own “unacceptable”. That’s an understatement. It’s a deeply discounted deal offering payment via a convertible bond. Political risk looms large too, but Yankuang has to make the financials less toxic.

Ukraine war helps China’s coal addiction stack up

2 Jun 2022

President Xi Jinping’s administration is boosting coal production to stave off power cuts. The top emitter is embracing the fossil fuel tightly as wealthy nations bid aggressively to replace Moscow’s natural gas supplies. The rational financial choice is a firm blow to net zero.

Stability and security trump threat of sanctions

30 May 2022

India is buying more Russian oil and coal, and a state-led group of companies is now eyeing Shell’s stake in an LNG project. Price volatility and climate woes are dictating national priorities. It’ll be thorny for the West to punish poorer countries for putting themselves first.

Capital Calls: Airbnb, Prudential, Glencore

25 May 2022

Concise views on global finance: The $68 bln vacation-booking platform will shut its Chinese business; the insurer appoints a new CEO – finally; the commodities giant has a $10 bln reason to keep its nose clean, after a $1.5 bln settlement for corruption allegations.

India’s energy-storage fix has virtue of speed

18 May 2022

As the West obsesses over building the perfect battery, Singapore- and Abu Dhabi-backed Greenko is launching the largest long-lasting renewable power-storage project. It’s a low-tech leap towards a greener energy system. Big customers like ArcelorMittal are lined up too.

Capital Calls: Amazon and consumers

29 Apr 2022

Concise views on global finance: People are spending more amid price hikes, while the e-commerce giant struggles with them.

Capital Calls: Snowflake’s no snowflake

3 Mar 2022

Concise views on global finance: The data warehouse firm doubled revenue, but the stock was whacked. Snowflake’s solid finances mean missteps are valuation conundrums, not existential threats.

Activist sets up Australia’s AGL for a sick burn

28 Feb 2022

Snowcap wants the power company to shelve its demerger, fend off any more lowball offers from Brookfield and adopt the latter’s plan to ditch coal. That will ultimately add pressure on AGL’s underperforming board to sell and might even result in a higher price from its suitor.

Aussie coal exits put dithering government on spot

17 Feb 2022

Origin wants to shut the country’s largest plant powered by the fossil fuel seven years early, following rivals’ lead. It drew ire from the ruling coalition, whose green-transition plan is lacklustre. Renewables have won the economic fight; the political battle is a slower burn.

Glencore is gaining ground on its trust issues

15 Feb 2022

The $77 bln commodity giant has set aside $1.5 bln to settle graft probes. That’s better than feared. And an improving valuation suggests investors are less bothered about its desire to stick with coal. But the mineral remains sufficiently controversial to check further upside.

Germany enlarges green transition’s grey area

2 Dec 2021

Berlin’s new coalition wants to build new plants powered by natural gas, even as it exits coal quicker. That strays from the ideal path to net-zero CO2 emissions. But the real problem is the precedent set by rich countries caving to those promoting gas as a green “bridge fuel”.

Glencore’s activist is misguided but not unhelpful

30 Nov 2021

Bluebell is pushing the $63 bln miner-trader to spin off coal. Thungela’s plans to dig up more of the mineral after its Anglo spinoff weaken the argument, and prices are at record highs. Still, if it makes Glencore quit coal quicker than its 2050 target, it’s a job well done.

BHP coal deal shines light on climate tech divide

8 Nov 2021

The miner agreed to sell its lower-grade steelmaking ingredient for $1.4 bln. It’s a bold bet for buyer Stanmore that hydrogen won’t be a replacement anytime soon. Acquisition funding largely dependent on hedge funds and its Asian parent speak to the energy finance transition.