Coal has surely had its day

In an age of mistrust there’s good reason the voice of the healthcare community continues to carry weight. Recent research published by The Lancet medical academic journal showing the health impacts of climate change deserve attention. We should listen when told that climate change is an issue of public health as much as it’s about the health of our planet. It shows how our continued reliance on coal is costing lives through air pollution while also driving climate change that will prove damaging to public health in so many ways. This is a poor return from a killer investment.

Analysis included in the research by The Lancet Countdown on Health and Climate, shows air pollution from coal plants is responsible for over 1.6m premature deaths across India, China, Indonesia, South Korea and Japan each year.

This figure is for just one type of air pollution attributed to coal and the overall total is likely to be even higher. That isn’t what I would call cheap energy.

No more warnings should be needed for the finance sector to exit the coal industry given its role in air pollution and a wide-scale public health disaster. When my doctor tells me something is bad for my health I tend to listen.

It’s time the finance sector listened to the warnings about a whole sector. The industry’s smog, acid rain, toxic mercury, and fine particles enter deep into our lungs, and no amount of greenwashing can ever change that. Meanwhile profitable solar and wind industries are harmless, generating the stable and consistent returns investors seek.

But the World Coal Association is aggressively advocating that finance should be directed towards cleaner coal plants. This is economic nonsense when renewables can now support energy needs. While polluting coal plants can be made relatively cleaner, they have been, and always will be, factories of death.

The industry has contributed to over 800,000 pollution premature deaths annually and planned coal plants would increase such deaths by 130,000 people per year.

Fortunately, investors and utilities are moving capital and shifting portfolios towards genuinely clean energy like solar and wind power. As The Lancet report highlights, the global solution is a worldwide coal phase-out as coal plants cause 44pc of global CO2 emissions. Our funds saw the writing on the wall and began exiting coal in 2013. Two years later the Norwegian Government instructed the trillion dollar Government Pension Fund to pull out of any company with 30pc of more of its business coming from coal, which made headlines around the world and was soon followed by Allianz, the world’s largest insurance company which adopted the same coal screen. The insurance giant Axa has also exited coal. When the world’s largest insurers start divesting from coal, you know the industry is in serious trouble. The $80bn (£61bn) we have under management is just a small slice of the $1.24 trillion investor equity to have turned its back on this filthy fuel.

As The Lancet highlights, whilst coal is phased out of the energy system, in particular in electricity production, the rapid scaling up of zero-carbon energy production and use will be crucial. Critical renewable technologies for achieving this will be solar, wind and other safe renewables sources like geothermal.

Solar is booming globally, as the International Energy Agency showed recently – a new era is upon us. The Lancet recognises that renewable energy continues to grow rapidly, mainly from increasing solar and wind investment, most notably in the US, China and Europe. A solar revolution is also under way in India.

Another remarkable new example of the shift from dirty coal energy to solar and wind is South Korea.

President Moon Jae-in is charting a path which other Asian economies are watching closely. There are hopeful signs from Asia to the Americas – transitioning to clean energy saves lives and avoids financial losses from dying industries.

‘It’s time the finance sector listened to the warnings about a whole sector’