Australian coal asset value could implode: Carbon Tracker.

Guardian: “Australia’s huge coal industry is a speculative bubble ripe for financial implosion if the world’s governments fulfil their agreement to act on climate change, according to a new report.” “….Australia is already the globe’s biggest coal exporter and “mega-mine” plans in Queensland for more extraction are identified as the world’s second biggest “carbon bomb” threatening runaway global warming. ….James Leaton, at thinktank Carbon Tracker and also another of the report’s authors, said: “Investors need to challenge the assumption that coal demand will continue to rise in China and elsewhere, otherwise billions of dollars of taxpayer, superannuation and shareholder funds will be wasted in assets linked to unburnable carbon.” ….far from cutting back on exploration for new coal reserves, Australian listed companies spent AU$6bn on developing new deposits. If only half of potential future reserves were exploited, Australian coal would use up 75% of the global carbon budget for the fuel. ….Leaton said China has indicated its coal use will peak in the next five years, but that this had not been priced by markets. “I don’t know why the market does not believe China. When it says it is going to do something, it usually does.” Yet Australia is banking on selling coal to China: “That doesn’t add up.”