When Colleges Ditch Coal Investments, It's Barely A Drop In The Bucket Stanford will stop investing in coal companies, but coal is still in demand worldwide and probably will be for many years. As long as that's true, coal companies are likely to find willing buyers.

When Colleges Ditch Coal Investments, It's Barely A Drop In The Bucket

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Stanford's decision to eliminate coal from its portfolio did not send shockwaves through the industry. Representatives say it will have no financial impact on the coal business, nor will it curb the growing demand around the world for coal-generated electricity. NPR's Yuki Noguchi reports on the industry's response to developments at Stanford.

YUKI NOGUCHI, BYLINE: If Stanford University students believe they sent the coal industry a strong message, Luke Popovich, a spokesman for the National Mining Association, has news for them.

LUKE POPOVICH: It strikes us as a politically expedient course of action, rather than a rational response.

NOGUCHI: Let's say more universities decide to take this move, is that going to have a material effect on coal companies?


NOGUCHI: University endowments commanded nearly $450 billion last year, according to the National Association of College and University Business Officers. Of that, only about 5 percent of the money is invested in energy, including everything from coal to solar. Popovich argues coal is simply too cheap, too abundant and in demand to be affected by university divestitures. And, he notes, three billion people on the planet living with little or no reliable electricity.

POPOVICH: And they won't have electricity anytime soon, certainly not in their lifetimes, unless coal generates it.

NOGUCHI: Beyond that, he argues, Stanford's decision isn't contributing to a real solution to the underlying environmental problem.

POPOVICH: If the challenge in the near future is to, if not eliminate entirely, the CO2 from coal combustion, then where can we look for that sort of leadership unless we're looking at institutions like Stanford?

NOGUCHI: And that is a sentiment echoed by Brown University president Christina Paxson, who last fall explained the university's decision not to divest. Paxson wrote: Divestiture would convey only a nebulous statement - that coal is harmful - without speaking to the technological and policy actions needed to reduce the harm from coal, actions where Brown can make real and important contributions through teaching and research. Indeed, other universities, including Harvard and Washington University in St. Louis, have considered and rejected similar student proposals. Last fall, Harvard University president Drew Faust wrote: The endowment is a resource, not an instrument to impel social or political change. Coal is also a big money maker and it's allowing more people in the developing world to access power, as Vic Svec points out. Svec is a spokesman for Peabody Energy, the world's largest coal business.

VIC SVEC: The world continues to turn toward coal.

NOGUCHI: Svec says the use of coal globally is gaining steam, not losing it.

SVEC: Coal has been the fastest-growing major fuel in the world for the last decade, and it's expected to surpass oil as the world's largest energy source.

NOGUCHI: There is plenty of demand for coal stocks, another industry spokesman told me. When universities divest their shares, someone else simply turns around and buys them. Yuki Noguchi, NPR News, Washington.

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