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(Bloomberg) — The UK’s move to open its first deep coal mine in more than three decades could make investors nervous about the country’s ambitions to meet clean energy targets.
That concern was echoed by Lombard Odier’s senior managing partner, Hubert Keller, who called the decision “unfortunate”.
The green light for the Woodhouse colliery project in Whitehaven, northwest England, has been widely condemned by lawmakers and campaigners, who see the move as a backward step for a country that was one of the first in the world to enshrine net zero targets in law. .
“I understand both sides of the debate,” Keller said during an interview with Bloomberg. “The UK steel industry needs coal and there is an argument for producing it domestically rather than importing it. The problem is that the UK government was effectively positioning itself as a green leader so instead, that money could have been deployed to help the steel industry decarbonise itself.
Read more: UK coal mine dilemma pits energy crisis against green goals
The Guardian newspaper reported on Saturday that US Special Presidential Envoy for Climate John Kerry said he was closely scrutinizing the mine approval over concerns it would lead to increased emissions and send the wrong signal to developing countries.
In an interview with Bloomberg News, Keller said the decision would also make investors wary of long-term investments in the UK.
“Investors, especially in the energy transition, need visibility into policy. And philosophy and vision come before policy. If the UK government can make a U-turn like this, how credible is that,” he said.
–With assistance from Ruth David.
©2022 Bloomberg LP
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