In my view, coal is going to be the first carbon energy source to wither and die. It will always be mined because there are non-burning uses for coal in industrial chemistry. But it will be a vastly diminished industry, operating under much tighter controls because its lobbying power will also diminish. Although it has gotten little coverage in the States I see the decision by Norway to divest from coal, as this reports describes, as the latest and most powerful example of this transition out of carbon trend. A critical consensus is emerging in collective consciousness that coal is bad as an energy source, and one measurable way this is being expressed is by individual choices concerning investment in coal. This event may be the tipping point.
Other investors are likely to follow Norwegian fund’s move out of coal-based investments, due to its size as the world’s largest sovereign wealth fund