As Climate Change Requires Cuts to Coal, Private Equity Buys More

The report details how private equity firms continue to acquire coal assets in the US, India, the Philippines, and Europe, often facing financial failure or environmental criticism. While US coal consumption dropped 44% since 2010 and utilities plan to retire dozens of plants by 2025, firms like KKR, Blackstone, and Macquarie have pursued coal investments that have resulted in bankruptcies or increased emissions. The document highlights a disconnect between the global need to reduce coal for the Paris Agreement and the investment strategies of private equity, especially as the COVID-19 pandemic further reduces energy demand.

• Coal consumption in the United States has seen a steep decline, falling by 44% since 2010, and renewable energy is expected to surpass coal in the US during 2020 and 2021.
• Private equity investments in coal have frequently resulted in financial losses or bankruptcy. For example, KKR's 40% stake in Longview Power was essentially wiped out following a chapter 11 bankruptcy filing in April 2020, and Macquarie Infrastructure's acquisition of Ind-Barath Energy (Utkal) in India led to bankruptcy proceedings by 2018.
• Private equity acquisitions of coal assets have been linked to increased pollution. After Blackstone Group and ArcLight Capital acquired Lightstone Generation in 2017, the Gavin coal power plant in Ohio saw sulfur dioxide emissions rise by 9% and nitrogen oxide emissions rise by 3% in 2018, becoming the sixth-largest CO2 emitting coal plant in the US.
• Private equity firms have pursued coal assets globally, including the acquisition of four European plants by Riverstone Holdings from Engie in 2019, and investments by Blackstone and Macquarie Infrastructure in the Philippines, where the government continues to expand coal electricity generation.
• While private equity continues some coal acquisitions, major US power companies like Xcel Energy and Duke Energy plan to retire at least 48 large coal plants by 2025, and no US utility is currently planning a new coal facility.

APA

Private Equity Stakeholder Project (2020). As Climate Change Requires Cuts to Coal, Private Equity Buys More. https://pestakeholder.org/reports/as-climate-change-requires-cuts-to-coal-private-equity-buys-more/

Chicago

Private Equity Stakeholder Project. As Climate Change Requires Cuts to Coal, Private Equity Buys More. 2020. https://pestakeholder.org/reports/as-climate-change-requires-cuts-to-coal-private-equity-buys-more/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=As Climate Change Requires Cuts to Coal, Private Equity Buys More |date=12 June 2020 |url=https://pestakeholder.org/reports/as-climate-change-requires-cuts-to-coal-private-equity-buys-more/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2020climate, author = {{Private Equity Stakeholder Project}}, title = {{As Climate Change Requires Cuts to Coal, Private Equity Buys More}}, institution = {Private Equity Stakeholder Project}, year = {2020}, month = jun, url = {https://pestakeholder.org/reports/as-climate-change-requires-cuts-to-coal-private-equity-buys-more/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }