According to Bloomberg analysts, about two-thirds of money spent on adding new electricity capacity worldwide will go to renewable between now and 2040.
The more pessimistic coal outlook has also diminished the sector’s ability to access loans. Consequently, coal bond prices have tumbled 17% in the second quarter, their fourth consecutive quarter of price declines. Since bond prices and yields have an inverse relationship, the falling prices have resulted in much higher borrowing costs.
Market Vectors-Coal ETF
For more information on the coal market, visit our coal category.