Stocks of coal miners fell on Monday as a result of an international agreement to decrease global coal usage.
The United Nations climate negotiations, or COP26, in Glasgow finished on Saturday with a pact aimed at reducing the use of fossil fuels. After lobbying from countries like India and others, the language was changed to call for a ‘phase down’ rather than a ‘phase out’ of coal.
‘The reality is that coal will be widely used for the next decade or so. It will continue to be a money-maker, ‘ Mathan Somasundaram, CEO of Deep Data Analytics, a Sydney-based research organisation, said.
In Hong Kong, while the larger stock market was fairly stable, big miners China Shenhua Energy and Yanzhou Coal lost 1 percent and 3 percent, respectively. The index of mainland-listed miners lost around 1 percent.
Indonesia, the world’s largest coal exporter, faced a reduction in exports as the output in China, which was the top consumer, surged. Bumi Resources, the world’s largest miner, fell 3 percent, while Adaro Energy and Indika Energy fell 5 percent and 6 percent, respectively.