10 Worst-Performing Industries in 2024

3. Coal

Range Global Coal Index ETF (NYSE:COAL): -11.06%

The coal industry hasn’t yet seen the worst for itself. Demand for the most polluting fossil fuel is expected to keep declining in advanced economies for the long term as the world moves towards climate-friendly sources of energy.

Coal consumption in the US and EU declined by 17% and 23%, respectively in 2023, representing the most significant annual decline of the century, as put by the IEA. Particularly in the EU, coal is expected to decline by roughly the same magnitude in 2024. The Range Global Coal Index ETF (NYSE:COAL) is down 11.06% year-to-date.

Overall, coal consumption is up, as developing countries still rely majorly on the cheapest fossil fuel to power their economies. Global coal consumption increased by 2.6% YoY in 2023, driven primarily by growth in China and India.

The aggressive adoption of solar and wind around the world at competitive pricing, coupled with growing hydropower recovery in China, the largest coal consumer, is expected to put pressure on the coal industry, however, surging demand for electricity is expected to offset these pressures. This suggests that global coal equity’s underperformance in 2024 is largely a result of long-term prospects for the industry.

Companies in the coal industry are adapting to a changing world by diversifying their energy assets and investing in renewable energy, to investing in carbon capture technologies.