Mining giant Whitehaven has argued transitioning to a lower-carbon world will not drastically weaken demand for Australian coal because of its higher quality and energy content compared to coal mined elsewhere.
Whitehaven on Wednesday became the first pure-play coal miner to voluntarily report its business prospects against risks posed by climate change under a set of globally accepted climate-reporting guidelines, and determined that it would remain "resilient" in the event of a range of climate policy challenges.
Whitehaven Coal says its business will remain resilient in a lower-carbon world.Credit:Reuters
The guidelines call for consideration of the potential impacts of a transition to a low-carbon future, including the impact of government policy changes such as carbon prices that would affect heavy emitters and fossil fuel producers. Formulated in 2017 by the Financial Stability Board, an international group of financial regulators, the guidelines have won the backing of a growing number of investors and companies worldwide.
Under a scenario whereby the world acts to limit global warming to 2 degrees above pre-industrial levels, in line with the goals of the Paris climate accord, the miner said, the "future of the Australian coal sector and high-quality coal producers such as Whitehaven is expected to remain robust over the longer term".