Thermal coal, nitrogen, among commodities most vulnerable to long-term climate change, say analysts

UNDER a scenario that limits global warming to below 2°C, the thermal coal and nitrogen sectors are the most vulnerable to long-term climate-related changes and could potentially be danger points for investors, Fitch Ratings analysts have said. 

In the metals and mining space, Oliver Schuh, senior director for Europe, the Middle East and Africa (EMEA) natural resources at Fitch Ratings, said that the climate vulnerability scores of thermal coal and blast furnace-basic oxygen furnace (BF-BOF) have, unsurprisingly, tracked higher over time, given the carbon footprint of each of the 2 commodities. 

Thermal coal is the largest single source of greenhouse gas emissions, so it remains the focus of policies mandating the gradual transition to “clean power”.