Coal stocks fall after Glasgow climate summit

• China Shenhua Energy and Yanzhou Coal fell 1% and 2.4% respectively in Hong Kong

• Indonesia experienced a bigger plunge due to rising production in China

Coal miners’ shares fell on Monday after pledges taken by several nations in the U.N. climate summit COP26 to reduce the fossil fuel’s use.

Miners such as China Shenhua Energy and Yanzhou Coal fell 1% and 2.4% respectively in Hong Kong.  

On Saturday, the last day of COP26 summit in Glasgow, a deal was finalized targeting fossil fuel use.

Also Read: COP26: New cover decision draft published, calls for less action on emissions

"Climate activists will undoubtedly frame COP26 as failing on coal (and fossil fuels). We look past this frustration (and current energy market conditions) and see ongoing incremental consensus in the need to reduce demand for fossil fuel," said Cowen analyst John Miller, reported Reuters.

Decline in other regions

Coal stocks were down in other regions as well. The world’s biggest coal exporter, Indonesia experienced a bigger plunge due to rising production in China.

No. 1 miner Bumi Resources fell 5.7% while Adaro Energy and Indika Energy declined 4.5% and 7% respectively.

Also Read: Final day of COP26 witnesses protest over lack of concrete action

In Australia, coal miner Whitehaven Coal fell about 1.6% while New Hope declined about 1% on Monday.

The deal in the Glasgow summit pledges to reduce fossil fuel use and carbon emissions which would accelerate transition to other energy sources.

Picture Credits: Reuters