Coal companies are advocating for the U.S. to remain in the global climate accord to combat climate change because it will give U.S. negotiators a seat at the international table in the future, not only to protect our energy interests but to advocate for coal as part of the global energy mix.
At first glance, it makes good sense to stay in the global group. For fossil fuel companies, it’s always smart to know what the other side is doing. Reuters is reporting that executives with Peabody Energy Corp and Cloud Peak Energy Inc have been in discussions with the White House over the past few weeks, according to a U.S. official familiar with the discussions.
“The future is foreign markets, so the last thing you want to do if you are a coal company is to give up a U.S. seat in the international climate discussions and let the Europeans control the agenda,” said the official, who asked not to be named because he was not authorized to speak publicly on the issue.
Cloud Peak Energy and Peabody Energy confirmed the discussions had taken place.
Fox News is reporting that Richard Reavey, Cloud Peak’s vice president of government affairs, said staying in the accord and trying to create “a more balanced, reasonable and appropriate path forward” on fossil fuel technologies is the best way to go.
So what does the U.S. coal industry want? Basically, it is the same thing the Obama administration was seeking in its Clean Power Plan – Assurances that the Paris accord provides a place and a role for the coal industry in low-emission coal-fired power plants and financial support for carbon capture and storage technology.
They also want assurances that the climate pact will protect multilateral funding for international coal projects through groups like the World Bank. Cloud Peak, as well as Peabody and other coal companies, supply the U.S. as well as shipping their coal to markets around the globe.
So their interests in developing a strong position in the U.S. are coupled with developing export sales and business opportunities around the world. In doing so, American coal companies have realized they can’t compete with climate and clean energy technologies unless they join in the mix. It just makes good sense.
