In the 1960s, major oil-producing nations formed a cartel to drive up the price of oil. It worked. For decades, nations in the Organization of the Petroleum Exporting Countries (OPEC) have agreed to manage supply and raise prices.
Economists have long recognised cartel market power can bring accidental environmental benefits. By driving up prices, demand for polluting products drops. One recent analysis found OPEC’s actions had avoided 67 billion tonnes of carbon dioxide emissions between 1971 and 2021 – equivalent to around three years of global oil consumption.
There’s no OPEC for thermal coal. However, Australia and Indonesia together account for around two thirds…