Commenting on UK Coal's results, Simon Ellis, Managing Director of Legal & General Investments, said:
"Energy security and price are of critical importance to all economies. As countries try and reduce their reliance on oil due to severe price fluctuations and security of supply, many are looking at not only new forms of energy such as renewable energy but also at existing supply such as coal in the UK, evidenced by UK Coal's results.
"However, when using fossil fuels such as coal, countries are faced with increasing legislation around carbon emissions, posing a paradox of having local energy supply which we're unable to fully exploit due to today's energy conversion processes which are emissions heavy. In our view, the answer is two fold - firstly, we need to increase low carbon local energy supply by building up renewable energy infrastructure. Secondly, we need to invest in ways of making our coal usable through clean coal technologies. The outcome is a more economically and politically stable energy mix in the long term as well of course as the associated environmental benefits."
Legal & General Investments has recently launched the Global Environmental Enterprises Fund, an innovative fund which aims to profit from the long-term global trends that are driving the need for greater resource and energy efficiency, vital for the transition to a lower carbon global economy.
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