China's rising coal generation is both a right and wrong step: Russell

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In the United States, the prospect of a sharp turn in US environmental policy helped boost Caterpillar shares by more than 7 percent on Wednesday on hopes that a Trump administration would reinvigorate coal mining and investment in infrastructure. A mining slump has depressed Caterpillar's profits and forced rounds of layoffs.

Marathon Petroleum Corp. said it looks forward to working with the Trump administration, as did ConocoPhillips; cumulatively, shares of companies focused primarily on USA, shale patches such as Oasis Petroleum and Whiting Petroleum spiked about 5 percent.

"There is bountiful evidence that free trade, tax reform, infrastructure investment and smart regulation are critically important to manufacturers' success", Caterpillar said in a statement. US railroads have suffered as coal shipments have declined.

University College London (UCL) professor of worldwide energy and climate change policy Michael Grubb said: "Outlining how and when coal plants will cease to operate will pave the way for new investment, including gas. And hopefully spur development in low emission and higher efficiency technologies which make coal cleaner to use".

"The coal sector has been devastated by lower demand and job loss in recent years due to the mounting impact of regulations pointed squarely at our industry".

"A new administration may result in less regulatory pressure for utilities, the competition offered by natural gas doesn't change", said Michael Trevino, spokesman for No. 2 USA railroad BNSF, which is owned by Berkshire Hathaway Inc.

But a Trump victory means little if the pledges made to ratify the Paris deal end up not being feasible.

Some delegates expressed concern that Trump, who in the past has dismissed climate change as a hoax, could cause other nations to reconsider their position on global warming.

A Milan-based trader said Trump, a climate change sceptic, may intend to push production of fossil fuels and revive the struggling US coal industry, at the expense of renewables.

Additionally, shares of coal producer Peabody Energy skyrocketed more than 49 percent on Wednesday, on the strength of Trump's criticism during the presidential campaign that Hillary Clinton's renewable energy schemes would put miners out of business.

Trump defied almost every expectation to emerge with the victory in a divisive and long USA presidential race, defeating former Secretary of State Hillary Clinton.

Still, one positive sign is that the Japanese government ratified the Paris agreement and the country now has the responsibility to adhere to its commitments,'s Furuno said.

Shares in European renewable energy equipment makers and utilities with significant investments in the United States fell 3 percent to as much as 10 percent on Wednesday. Tesla benefits from federal tax breaks for electric vehicles and selling credits generated under a California electric vehicle policy.

The government also reaffirmed plans to offer subsidies worth 730 million pounds ($910.75 million) to renewable projects. Spain's Gamesa, which is being merged with Siemens, and Portugal's EDP Renovaveis traded 2.4 and 5.2 percent lower, respectively.

All of this could set the world back another decade or more on tackling climate change.

China's government announced plans to increase the country's coal-fired power capacity by as much as 20 percent over the next four years as United Nations delegates meet in Morocco to implement a major global warming agreement.