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New Coal Facilities-Overcoming the Obstacles

AUTHOR: Alessandra McConville
DATE: June 1996

The latest in the series Perspectives reports from the IEA Coal Research reviews how to overcome the barriers to new coal facilities.

An overview of trends and projections for the future coal production and use is presented. Economic obstacles to new coal facilities are discussed. Privatisation and deregulation of power generation industries and restructuring of coal mining industries are leading to an unfavorable investment climate for new coal facilities, in competition with other fuels.

Environmental legislation of relevance to new coal facilities is reviewed for selected countries. In itself, environmental legislation does not pose an insurmountable obstacle, although it adds to the costs and time required to complete a project. Objections to new coal facilities on environmental grounds by local residents and local government are common, and often present a major barrier. Consultation and information dissemination can help overcome this obstacle.