CIAB Market & Policy developments 2005/06 - IEA

4 ISSUES RELATED TO COAL
4.1 Sustaining the Role of Coal
183. The IEA has forecast that total energy demand over the next twenty five years will
increase by 55%. In order to maintain a stable and affordable energy supply whilst
keeping economic, social and environmental objectives in balance, it is essential that
energy be obtained from a wide variety of sources.
184. A compelling economic and social case can be made for sustaining the role of coal in the
future energy mix, given that it is an affordable, reliable and secure source of energy. All
fossil fuels must address the challenge of climate change – most important for coal
because it is the most carbon intensive fossil fuel. The following paragraphs highlight
recent developments that reflect the challenge which has been accepted by the industry
and governments to reduce the emissions from the use of coal in fulfilling its role in the
future energy mix.
4.1.1 Policy and the Role of Coal
United States of America
Coal to Liquids and the Energy Bill of 2007
185. Interest in developing a coal to liquids industry in the United States of America remains
strong despite the lack of positive Congressional action needed to accelerate the
advancement of this new industry. Although there is bipartisan interest in using domestic
coal to give the nation a greater degree of energy independence and thus more security
from an energy and economic view point, partisan politics have dominated the debate
throughout 2007. During Senate floor consideration of the CLEAN Energy Act of 2007,
two amendments that would have encouraged the financing and construction of
domestic coal to liquid facilities were lost. Although collectively one or both amendments
were supported by 60 Senators, neither had enough votes to attain final passage and
they were not included in the Senate passed energy bill. Leadership in the House
refused to consider any substantive coal-related provisions in its version of the energy
bill with concerns raised about the relationship of coal to liquids facilities and climate
change policy.
186. The industry Coal to Liquids Coalition will continue to work with this Administration and
with the Congress to secure passage of meaningful CTL incentives that do not include
carbon capture and storage requirements that are technically and/or economically
infeasible.
187. The Senate and House passed energy bills went to conference and passed in the last
days of 2007. The final bill is oriented toward conservation, efficiency and renewables.
Although the final bill does not include a renewable energy portfolio standard, it does
little to support traditional fossil fuels. The legislation does not include any pro-coal
provisions.
Energy Policy Act 2005
188. Full implementation of the 2005 Energy Policy Act, the most comprehensive energy bill in
a decade, remains important for coal. Its provisions are designed to expand quantity and
diversity of US energy supplies as well as enhance the efficiency with which energy is
used. Coal specific provisions included authorisation for basic coal and coal combustion
- 31 -