Some talking points for climate discussions.
According to the International Energy Agency (IEA), global coal consumption is on track to reach all-time highs. Wikipedia reports that China accounts for more than 50% of the world’s consumption of coal and is the largest user of coal-generated electricity. So far, China has resisted calls to reduce its greenhouse gas emissions. China’s position is clear, as articulated in a January 2022 speech by President Xi, in which he stated that, “carbon goals shouldn’t come at the expense of the normal life of Chinese people or energy or food security.” What happens in China does not stay in China.
Mount Pinatubo is an active volcano located in the Philippines. Pinatubo is best known for a massive eruption on June 15,1991, bringing a lethal mix of ash and rain to the surrounding area. The effects of the eruption were felt worldwide. It erupted massive amounts of magma and SO2, bringing vast quantities of minerals and toxic metals to the surface. Over the following months, the aerosols formed a global layer of sulfuric acid haze. Global temperatures dropped by about 0.5 degrees C and 0.9 degrees F in the years 1991-1993.
What goes around comes around.
Politicians and investors seek solutions and opportunities. Mother Nature laughs.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA