US NGOs call for regulation of coal train dust emissions: The Sierra Club and a coalition of environmental and public health organisations have requested the US Environmental Protection Agency (EPA) regulate coal dust emissions from railway wagons. The groups argue that the EPA has the power under the Clean Water Act to regulate coal and other coal-related pollution of navigable waters from point sources, including open-top railway wagons. The groups argue that unburned coal and coal particles from the harmful effects of uncovered wagons contaminate aquatic environments with toxic metals, chemicals, and other pollutants. The groups say that while coal production is declining, coal exports are increasing, with coal dust pollution extending along the national railway network. The groups point to testimony in a Surface Transportation Board case that each uncovered rail wagon loses at least 500 pounds (227 kg) on each trip, with a 120-wagon train emitting 60,000 pounds (27.2 tonnes). (Sierra Club)

China cools on new energy projects in Pakistan: China has rebuffed requests by Pakistan for financial support for new energy, climate change and electricity transmission projects under the China-Pakistan Economic Corridor, a part of the Belt and Road initiative. At a meeting between officials in October last year, the minutes of which weren’t finalised until July 2023, China rejected a request for support for a 500-kilovolt transmission line between the port of Gwadar and the national electricity grid in Karachi. The Chinese delegation also insisted Pakistan drop its objection to a proposed 300 MW imported coal plant in Gwadar that had the backing of a Chinese consortium. Pakistan had proposed establishing renewables capacity for an industrial zone around the port or moving the plant inland as a mine-mouth project. Anonymous officials attribute the resistance to new projects to political instability in Pakistan and concerns about security for Chinese contractors. (Nikkei Asia)

South African union calls for suspension of just transition deal: The National Union of Mineworkers (NUM) has called on the government to suspend the US$8.5 billion Just Energy Transition Partnership and more consultation on restructuring the state-owned utility Eskom into generation, transmission and distribution arms. The NUM is the largest union representing staff employed by Eskom. Opposition to the retirement of old coal plants and a transition to renewables has been embraced by the Minister for Energy, Gwede Mantashe, and, to a lesser extent, the Minister for Electricity, Kgosientsho Ramokgopa. A recent focal point for opposition to a just transition was the closure in October 2022 of the Komati coal plant and its repurposing for renewables projects. Melissa Fourie, a member of South Africa’s Presidential Climate Commission, told a meeting of the commission last week that Eskom’s plan for decommissioning Komati was developed too late, with a lack of proper consultation with the local community and early development of new employment opportunities. In the wake of the NUM’s call, Ramokgopa said there are no further plans to close Eskom coal plants to be replaced by renewables. (News24, News24, Business Day, National Union of Mineworkers)

Unions protest Bulgarian government transition plans: The Bulgarian government has submitted plans for the country’s three coal regions – Stara Zagora, Pernik and Kyustendil – to the European Commission to ensure eligibility for €1.15 billion (US$1.2 billion) in funding from the Just Transition Mechanism. Bulgaria is the last European country to submit its plans and missed out on funding of €100 million (US$106 million) in 2022 and was at risk of losing a further €800 million (US$850 million) if plans weren’t submitted by the end of September. In negotiations with unions, the government agreed to shift all workers employed in coal mines and power plants into a state-owned enterprise and has not nominated a closure schedule for specific plants, suggesting plants could remain open until 2038. Despite the concessions, workers in coal regions blocked major roads and demanded the resignation of Energy Minister Roumen Radev and the withdrawal of the plans. According to the latest Global Coal Plant Tracker data, Bulgaria has 11 coal power plants with a combined capacity of 4569 MW. (Radio Free Europe, SeeNews, Sofia Globe)

ADB says Indonesian coal closure project will be revealed “soon”: The Asian Development Bank (ADB) will “soon” announce its first Energy Transition Mechanism (ETM) project for the early retirement of the 660 MW Cirebon 1 plant in Indonesia. The plant was commissioned in 2012 and is owned by a consortium of Japanese and South Korean companies. Friends of the Earth Indonesia (WALHI) has criticised the Cirebon plant for the pollution impacts on 3000 farmers and fishermen in nearby communities. The ADB wants the Cirebon agreement to become a model for providing concessional and commercial lending to finance the early retirement of other private coal plants. Oxfam Asia has criticised the ADB’s reliance on commercial and concessional finance as increasing the debt burden of countries that can least afford it. The ADB is negotiating similar deals in the Philippines and Vietnam and has provided funding for early-stage studies on transition strategies for Kazakhstan and Pakistan. (Reuters)

Australian court overturns Queensland gov't rejection of coal licence: The Queensland Supreme Court has ruled in favour of Fox Coal’s challenge against the April 2022 decision of the Minister for Resources, Scott Stewart, refusing a coal exploration licence for a potential metallurgical coal mine near Bundaberg. Stewart noted “significant adverse community sentiment” at the time of his decision. Farmers objected to the likely impacts on farmland and water supplies. However, Justice Melanie Hindman found that in considering community sentiment, Stewart did not “make any assessment as to whether there is a reasonable basis for the identified community sentiment” and set the original decision aside. Three other grounds of appeal submitted by Fox Coal were rejected. (Supreme Court of Queensland [Pdf], Fox Resources [Pdf])

Australia: Lock the Gate urges the federal government not to approve BHP Mitsubishi Alliance’s Caval Ridge Horse Pit as it would add 473 million tonnes of greenhouse gases to the atmosphere.

Botswana: The government’s Minerals Development Company Botswana (MDCB) has seconded a senior official to act as CEO of Minergy Coal as a condition of providing 90 million pula (US$6.5 million) to the struggling mining company.

Germany: The electricity network regulator has directed Uniper to keep the 345 MW Scholven C coal unit on standby until October 1, 2024. The scheduled closure date for the unit was previously April 1, 2024.

India: Six more coal blocks, with a combined capacity of about seven million tonnes annually, have been auctioned off to companies including NTPC, Hindalco Industries and NLC India.

Indonesia: A senior Ministry of Energy and Ministerial Resources said Indonesia’s coal production will decline after 2030. Indonesia expects to produce 695 million tonnes of coal in 2023, with 518 million tonnes sold into the export market.

Pakistan: Sindh Engro Coal Mining Company, Pakistan’s largest coal mining company, expects to increase coal production in 2024 by more than 51 per cent to 11.5 million tonnes.

UK: The 570 MW of coal units at the Kilroot Power Plant in Northern Ireland have shut down, leaving just one coal plant operating in the UK.

Zimbabwe: Harpal Randhawa, the owner of RioZim, and five others died in a plane crash. RioZim holds the licence for the proposed Sengwa coal mine and has touted a 2800 MW mine-mouth power plant at the site.

Largest investors in Adani Power a company with one shareholder: Opal Investment Private Ltd, the largest investor in Adani Power, is a “single person company” established in the United Arab Emirates in May 2019, according to records seen by the Financial Express. Opal Investment Private is one of the 13 companies under investigation by India’s Securities and Exchange Board of India (SEBI) as part of its inquiry into potential breaches of corporate law by investors in Adani Group companies. The SEBI inquiry comes as part of the response to the Hindenburg Research report in January, which alleged Adani Group companies breached the requirement that listed firms have at least 25 per cent of their shares held by non-promoters to limit stock price manipulation.  International Holding Company (IHC), a diversified Abu Dhabi company chaired by Sheikh Tahnoon bin Zayed al-Nahyan, has decided to sell its stakes in two Adani companies, Adani Green Energy and Adani Transmission. IHC did not disclose the sale prices or buyers, but as the share price of both companies has declined since the purchase, IHC likely incurred a significant loss on the transactions. IHC did not mention its stake in Adani Enterprises in its corporate filing. In April 2022, IHC invested US$500 million in each company and US$1 billion in Adani Enterprises, describing the transactions as a “long-term investment in India”. (Financial Express, Financial Times)

The European Union’s Carbon Border Adjustment Mechanism kicks off: The trial period of the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) has commenced for importers of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen who are obliged to report the volume of imports and their embedded greenhouse gas emissions. The CBAM trial period commenced on October 1, with importers required to submit data for the trial period to the end of 2025. The CBAM aims to prevent energy-intensive European producers from being undercut by imports not exposed to the EU measures designed to cut greenhouse gas emissions. In 2026, importers of the scheduled products will be required to buy certificates reflecting embedded greenhouse gas emissions. The costs of CBAM certificates will be most significant for exports from Russia, China, the UK, Turkey, Ukraine, India, South Korea, and the US. (Politico, European Commission)

European insurers underwrite almost one-third of US coal production: A report by Public Citizen and Insure our Future estimates five insurance companies – AIG, Liberty Mutual, Lloyd’s of London, Swiss Re, and Zurich – underwrite 245 million short tons (222 million tonnes) or 40 per cent of US coal production. The report notes that four of the top five insurers have adopted policy restrictions on underwriting coal but continue providing coverage for US thermal coal mining companies. Many of the insurers of coal production also provide coverage for homeowners and businesses but are now declining coverage in some areas or entire states in response to intensifying climate crises. (Insure Our Future, Public Citizen [Pdf])

Colombian mining regulator backs met coal push: Álvaro Pardo, the head of ANM, Colombia’s mining regulator, told a mining industry conference that while the government had decided the production of thermal coal “does not have much future” due to declining prices and a switch to clean energy, the prospects for metallurgical coal are brighter. Pardo said ANM is in discussions with companies that produce metallurgical coal and coke and views it as “an industry that serves us” and that “we have a great commitment to metallurgical coal”. Colombia is currently the world’s fifth largest exporter of thermal coal, shipping 54 million tonnes in 2022, with small amounts of metallurgical coal produced for domestic demand and export. (BNAmericas)

Australian report sees limited growth in the seaborne thermal coal market: The latest edition of Resources and Energy Quarterly by the Australian Government’s Department of Industry estimates global thermal coal exports are likely to decline by 2.5 per cent in 2023 to 1017 million tonnes as Chinese demand eases. The report estimates that Indian thermal coal imports may increase from 153 million tonnes in 2022 to 209 million tonnes by 2025, while demand in Taiwan will decline. Increasing Vietnamese coal capacity has been chiefly designed to use Indonesian coal. As a result of sanctions, falling prices and rising costs, the report estimates Russian exports may decline from 151 million tonnes in 2022 to 128 million tonnes by 2025. (Australian Department of Industry [pdf])

Uncertain steel demand cast a shadow over metallurgical coal: The Australian Government’s Department of Industry estimates world steel production is expected to record year-on-year growth of 1.2 per cent in 2023 and increase more strongly in the following two years to reach just under two billion tonnes in 2025. With the construction sector accounting for about half of world steel consumption, there is uncertainty about this demand driver due to increased interest rates and doubts about China’s housing market. Increased steel production growth will primarily occur in India, Southeast Asia and the Middle East. The department estimates metallurgical export coal trade may increase marginally from 312 million tonnes in 2022 to 316 million tonnes, with increasing Indian demand offsetting declining European and Chinese imports. The agency expects Australian exports to grow strongly from 157 million tonnes in 2022–23 to 172 million tonnes in 2024–25 with the opening of several new mines. Mongolian coal exports to China are expected to increase following the completion of new rail links, and Mozambican exports will increase after the commissioning of a processing plant at the Moatize mine. Reduced Russian exports are expected to support stable exports from US producers. (Australian Department of Industry [Pdf])

India looks to hydrogen to limit reliance on coal as steel industry booms: A report by the Institute of Energy Economic and Financial Analysis (IEFFA) and JMK Research and Analytics estimates that Indian steel production is expected to double by 2030 to 227 million tonnes and double again to 515 million tonnes a year by 2050. India currently produces little metallurgical coal, with most of the 60 million tonnes imported in 2022 from Australia, Russia and the US. In 2021, India launched its National Green Hydrogen Mission to cut reliance on imported fossil fuels. While most of India’s steel production growth will be from blast furnaces, the report estimates that the coal-based share will drop from 92 per cent in 2021 to 70 per cent in 2030 and be eliminated by 2070. The report estimates that green hydrogen could account for 12 per cent of steel production by 2030 and increase to 42 per cent in 2050. The consultancy firm Wood Mackenzie estimates the European Union’s Carbon Border Adjustment Mechanism could increase the cost of Indian steel by 56 per cent, adding additional pressure to decarbonise production. (Institute for Energy Economics & Financial Analysis)

“CLEW Guide: Upcoming election will shape direction and pace of Poland’s energy transition”, Clean Energy Wire, September 29, 2023.

This article provides a detailed overview of Poland’s key energy transition challenges. Climate and energy policies have featured prominently in the campaigns of leading political parties ahead of the 15 October general election.