King Coal

Coal prices sky-rocketed 465% from the 2020-year low to the end of September 2021. Consumers have been caged in lockdown for almost two years and as we see the world start to open back up, their spending has been unleashed and the demand for the latest ‘widget’ has exploded. Factories that run on coal-powered electricity have seen their production go through the roof to satisfy the rebound in consumer spending.

As the world turns more climate-change-focused, coal prices are spiking, and climate change activism is the exact reason we have seen prices moving higher and higher. The reduction of investments in coal mine exploration has also contributed to the overall supply shortage which has seen demand increase.

As the world starts to reopen and consumer spending continues to boom, the demand for the dirtier but much cheaper coal will continue to grow exponentially. This raises the prices of carbon emissions which is good news for climate change policy makers. The rising cost of coal might ultimately be beneficial as it will allow for greener alternatives to become more economically viable.