Coal futures dropped below $140 a tonne in August, following news that a group of commercial and development banks is devising plans to speed the closure of Asia’s coal-fired power plants in order to meet climate targets. The novel proposal, to be ready for the COP26 climate conference in November, aims to create public-private partnerships to buy out the plants and wind them down within 15 years, far sooner than their usual life. In July, coal futures hit $150 a tonne, their highest level in a decade, on the back of low supplies and strong demand from China, India and much of Asia as coal-fired power plants have seen record usage levels due to a major heatwave this summer.
