Coal has traditionally been one of the key pillars for many dry bulk shipping companies, but the commodity looks set to become the first and largest loser in the green transition, concludes consulting firm Wood Mackenzie in a new report.
And unlike gas in particular, which looks to be more resilient to renewable energy, the developments facing coal are fairly certain, and not even an international COP cap and trade scheme will change this, say the analysts.
"Coal however will bear the brunt of an accelerated energy transition, with demand declining by half by 2040," reads the report.
Renewables are seen as the clear winner and are expected to grow by 11 percent annually in the period 2015 to 2035. As such, wind and solar will account for 40 percent of the combined energy supply in 2040, compared to 7 percent today.
Unlike coal, gas in particular will represent a significant and growing part of the market.
"Natural gas will see continued demand growth through 2040, driven by emerging markets such as China, India and Southeast Asia, with Asia Pacific accounting for more than 60% of incremental demand 2018-2040," writes Wood Mackenzie:
"Fossil fuel use will not disappear any time soon."
English Edit: Daniel Logan Berg-Munch