- For a real sense of coal's diminishing prospects (NYSEARCA:KOL), check out what is happening in the bond market, where three of the biggest U.S. coal producers had the worst-performing bonds for Q2: Alpha Natural Resources (ANR) -70%, Peabody Energy (NYSE:BTU) -40%, Arch Coal (NYSE:ACI) -30%.
- Bonds are where coal companies traditionally turn to raise money for new mines and environmental cleanups, but investors are increasingly reluctant to lend to them, as coal bond prices tumbled 17% in Q2, Bloomberg reports.
- Even setting aside environmental and health issues, renewables are on a trajectory to outcompete fossil fuels, starting with coal; between now and 2040, two-thirds of the money spent on adding new electricity capacity worldwide will be spent on renewables, according to the analysis.