Environmental policy and regulation is creating long term risks to thermal coal demand, particularly in Europe and other advanced economies. Critically, as explored in this Insight, this is also directly re-shaping the regulatory environment for future coal mining projects.
Recent developments in the Australian courts affecting approval of new thermal coal projects could spell serious consequences, particularly for owners of moderate and low energy density coal resources. How will makers respond in the face of collapsing investment?
In February 2019, the New South Wales (NSW) Land and Environment Court refused consent to a proposed Rocky Hill coal mine. The judgment rested heavily on scientific testament regarding the impact of the project on environmental and climate outcomes, and the purported potential for a rapid shift to cleaner forms of steel production.