Global warming fears don’t seem to have affected the coal exchange traded fund (ETF) just yet, as investors seek to harness the benefits of soaring oil prices and a global coal shortage.

Market Vectors Coal (KOL) got another boost on Tuesday after the International Energy Agency reported coal will be the world’s biggest energy source for the next quarter of a century. Since the fund’s inception on Jan. 15 this year, it’s up 30.8%.

Joanne Von Alroth for Investor’s Business Daily reports that coal is used for providing energy and heat, is a key ingredient in steel production, polysilicon and cement. Moreover, it is far cheaper than oil or natural gas and the world has four times the reserves.

China is one of the largest consumers of coal and relies on it for 70% of its power. Right now, the supply there is down as recent quakes in the Sichuan province has shut down 200 mines for safety inspections. In the United States, coal provides 50% of our power. The World Coal Institute also estimates that 17% of the world’s coal goes to make steel.

The institute also estimates that 40% of the world’s electricity generation comes from coal.

Tags | Asia, China, Coal, Gas, KOL, Material ETFs, Metals, Natural Gas, Steel