Economic Affairs: The bumpy road to a green economy

Demand for fossil fuels is notoriously sticky as seen in the recent surge in demand for coal by China and India, pushing up prices

Coal is trading at sky-high levels and savvy investors such as those of Peabody Energy are enjoying “a few last puffs of the cigar”. PHOTO: BLOOMBERG
New: Gift this subscriber-only story to your friends and family

During the year to date, the share price of Peabody Energy, the world's largest private coal producer, has risen more than sixfold, making it one of the best investments among energy companies or indeed, any industry category. This was largely because the price of coal, the most unloved of energy sources, has been on a tear, more than tripling since the start of this year.

There is a connection between these developments and what has been happening lately in China and India, which together account for about two-thirds of the global demand for coal. Over recent days, there have been rolling blackouts in Beijing, Shanghai and many cities in the rust belt of China's north-eastern provinces because of crippling power shortages.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.