Winners and Losers From Obama's Anti-Coal Efforts to Cut Carbon Emissions
NEW YORK (TheStreet) -- The Environmental Protection Agency is coming down hard on the coal-based power plants, and this creates some exciting new investment opportunities.
Earlier this month, the EPA released its highly anticipated proposal that aims to cut carbon emissions by 25% by 2020 and 30% by 2030 from 2005 levels. So far, since 2005, the U.S. emissions have already fallen by 15%. The additional decline will be achieved by placing carbon emission limits on coal-based power plants.
As a result, the coal related stocks, including miners and energy producers such as Peabody Energy
On the other hand, America's Natural Gas Alliance, or ANGA, has painted a rosy outlook for the natural gas industry as the government tries to reduce carbon emissions.
That being said, not all coal stocks might behave in the same way. Unlike most of its peers in the industry, Consol Energy
All of the coal companies mentioned above, including Consol Energy, as well as more than two dozen other big players in the coal industry, including the world's biggest coal miner China Shenhua Energy, Australia's coal transportation company Aurizon Holdings and coal mining equipment maker Joy Global
Market Vectors Coal ETF has significant exposure towards the energy sector. The fund has allocated nearly 62% of its net assets towards coal-based energy companies.