Trump announces $700 mn plan to boost coal industry, says 'failed countries' spend on renewable energy

On the eve of World Environment Day, US President Donald Trump announced his plans to invest millions of dollars to revive the American coal industry. He maintained that much of the funding for the endeavour would be coming through the president's wartime powers.

"So today we're taking historic action to bring down the price of energy and the cost of living for all Americans with the power of clean, beautiful coal," Trump said at the White House on Thursday. The investment is coming at a time when Trump is seeking to insulate Americans from rising energy costs amid ongoing war with Iran.

To finance the initiative, Trump said he would invoke the Defence Production Act, a Cold War-era law that grants the president broad authority to support industries considered vital to national security. "As a result of the $700 million investment that I'm announcing today, we will protect 14 coal plants and 42 coal mines, a tremendous number, and build two new coal plants and one massive new export terminal," the American president said.

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What the project entails

While speaking to the media on Thursday, Trump said that $500 million (£372m) of federal funds will go towards saving 14 existing coal plants and opening a new export terminal in California. Meanwhile, the Department of Energy will grant a further $200 million to build new coal plants in Alaska and West Virginia, the first new plants in the US since 2013.

Trump maintained that the plan would include construction of a coal export terminal in Oakland, California and would create more than 1,400 jobs, with the total package supporting around 14,000. Some of the coal plants getting investment under Trump's initiative are located in Kentucky, North Carolina, Indiana, Tennessee, Arkansas, Arizona, Oklahoma, North Dakota, Wisconsin and West Virginia.

While putting his case forward, Trump argued that successful nations rely on coal. He went on to slam "failed countries" for investing in renewable energy sources such as wind power. The American leader emphasised that his coal investment plans would save American consumers $50 billion in new energy generation costs, which otherwise would have been passed on in higher bills.

It is pertinent to note that the war with Iran and the closure of the Strait of Hormuz, a critical shipping route that carries around a fifth of global oil and gas supplies, have pushed energy prices higher, driving up costs for consumers. According to the Bureau of Labour Statistics (BLS), overall energy prices for consumers rose by 17.9 per cent in the year to April.