Energy and coal – The Property Chronicle
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Energy and coal

The Analyst

Achieving net zero emissions has a long way to go.

Some of the historical events accentuating the recent decade is the threat of pandemics and the urgency towards embracing common environment policies. Both points have either shaped or affected in various ways our current and future economic outlook. The expectation that the coronavirus rampage is going to end soon has not particularly materialised as of yet, but there are many good signs emerging globally. Now, however, we can observe the aftermath of the sudden economic downturn. 

An increase in demand for energy commodities is usually a good sign of economic growth and recovery. The usual scenario is that recessions are expected to lead to a reduction in production capacity because of an assumed slump in demand. But the stimulus programmes implemented by many countries have helped accelerate recovery and maintain demand to a certain degree. Also, the asymmetrical policies by some countries opening up while others resume lockdown measures contributed to the global logistical havoc of an over-efficient supply chain. It is also worth mentioning that these issues in some instances are not solely logistical in nature but political as well.  

The first chart gives a glimpse of the surge in energy prices of oil, natural gas and coal. Coal, the energy commodity of the past, has been in decline for many years now. Developed countries have been reducing their dependence on coal as they move towards more environmentally sustainable energy products as well as other fuels that produce less emissions. It is, however, not the case for developing countries, like China, that continue to depend heavily on coal. 

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