Get the latest as our experts share their insights on global energy policy.
The economic and humanitarian consequences of the June 24 twin earthquakes in Venezuela continue to emerge.
Hear in-depth conversations with the world’s top energy and climate leaders from government, business, academia, and civil society.
Over the past five months, the Strait of Hormuz has been closed for extended stretches of time, disrupting roughly 10 to 15 million barrels of oil supply each...
Find out more about our upcoming and past events.
Join industry leaders, innovators, employers, and emerging talent for an evening exploring the technologies, trends, and career opportunities shaping the future of climate tech.
Report by Adele Morris, Noah Kaufman & Siddhi Doshi • July 15, 2019
The views expressed in this report should not be construed as reflecting the views of the Columbia SIPA Center on Global Energy Policy, the Brookings Institution or any other entity. The words “we” and “our” refer to the authors’ own opinions.
This work was made possible by support from the Center on Global Energy Policy (CGEP) and the Laura and John Arnold Foundation. More information about CGEP is available at Our Partners.
(This list is updated periodically)
Occidental Petroleum Corporation
If the United States undertakes actions to address the risks of climate change, the use of coal in the power sector will decline rapidly. This presents major risks to the 53,000 US workers employed by the industry and their communities. 26 US counties are classified as “coal-mining dependent,” meaning the coal industry is a major employer. In these areas, the industry is also an important contributor to local government finances through a complex system of property, severance, sales, and income taxes; royalties and lease bonuses for production on state and federal lands; and intergovernmental transfers.
While climate-related risks to corporations have received scrutiny in recent years, local governments—including coal-reliant counties—have yet to grapple with the implications of climate policies for their financial conditions. Importantly, the risks from the financial decline of coal-reliant counties extend beyond their borders, as these counties also have significant outstanding debts to the US municipal bond market that they may struggle to repay.
To be sure, national climate policy in the United States is uncertain. Experts have long recommended strong policy action to reduce emissions, and for years, policy makers have largely ignored their advice. Nevertheless, with growing support by the public and policy makers, meaningful climate policy in the United States may be on the horizon, and those dependent on coal should be looking ahead to manage their risks.
This paper examines the implications of a carbon-constrained future on coal-dependent local governments in the United States. It considers the outlook for US coal production over the next decade under such conditions and explores the risk this will pose for county finances. The paper also considers the responsibilities of jurisdictions to disclose these risks, particularly when they issue bonds, and the actions leaders can take to mitigate the risks. In short, the paper finds the following:
When the One Big Beautiful Bill Act was enacted, a widespread reading was that US power-sector decarbonization had been derailed.
Full report
Report by Adele Morris, Noah Kaufman & Siddhi Doshi • July 15, 2019