AS CLIMATE CHANGE REQUIRES CUTS TO COAL, PRIVATE EQUITY BUYS MORE

The report details how private equity firms like Blackstone, KKR, and Macquarie Infrastructure have acquired coal assets in the US, India, the Philippines, and Europe, often facing financial losses or environmental criticism. It contrasts these investments with a broader trend of coal decline, noting that US coal consumption dropped 44% since 2010 and renewable energy is expected to eclipse coal in the US by 2021.

• Private equity firms have continued to acquire coal assets despite a steep decline in US coal consumption, which has dropped by 44% since 2010. Renewable energy is projected to surpass coal in the US during 2020 and 2021.
• Many private equity investments in coal have resulted in poor financial performance 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 Yorktown Partners' investment in Ramaco Resources saw shares drop 80% from its IPO to May 2020.
• Private equity firms are acquiring coal assets globally, sometimes purchasing them from utilities transitioning to renewables. Riverstone Holdings paid $66 million in 2019 to acquire four European coal plants from Engie, forming Onyx Power to operate them in Germany and the Netherlands.
• In India and the Philippines, private equity firms have funded coal expansion despite community and environmental opposition. Macquarie Infrastructure and Warburg Pincus have invested in Indian coal assets, while Blackstone and Macquarie Infrastructure backed coal plants in the Philippines, including the Mariveles Coal Plant.
• The report notes a divergence in energy policy: while Europe has proposed a Just Transition plan to move away from coal, the US is reducing emissions regulations and China is approving new coal plants.

APA

Giachino, A. (2020). AS CLIMATE CHANGE REQUIRES CUTS TO COAL, PRIVATE EQUITY BUYS MORE. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2020/07/PESP-As-Coal-Declines-PE-Buys-More.pdf

Chicago

Giachino, Alyssa. AS CLIMATE CHANGE REQUIRES CUTS TO COAL, PRIVATE EQUITY BUYS MORE. Private Equity Stakeholder Project, 2020. https://pestakeholder.org/wp-content/uploads/2020/07/PESP-As-Coal-Declines-PE-Buys-More.pdf.

Wikipedia

{{cite report |last1=Giachino |first1=Alyssa |title=AS CLIMATE CHANGE REQUIRES CUTS TO COAL, PRIVATE EQUITY BUYS MORE |publisher=Private Equity Stakeholder Project |date=June 2020 |url=https://pestakeholder.org/wp-content/uploads/2020/07/PESP-As-Coal-Declines-PE-Buys-More.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{giachino2020climate, author = {Giachino, Alyssa}, 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/wp-content/uploads/2020/07/PESP-As-Coal-Declines-PE-Buys-More.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }