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Expand chart
Adapted from Morris, et. al, 2019,  "The risk of fiscal collapse in coal-reliant communities"; Chart; Andrew Witherspoon/Axios

Local governments face severe economic risks from coal's ongoing decline and future climate policies, yet often fail to disclose these threats in their municipal bond filings, a report shows.

Why it matters: It's a sobering look at what could be in store for specific mining-dependent regions, where coal revenues account for a third or more of the budget, and the sector's collapse could have severe ripple effects.

  • The analysis — from a Columbia University energy think tank and the Brookings Institution — arrives as Democratic White House hopefuls push emissions policies that would hasten coal's power-sector decline.
  • However, the Democratic proposals also aim to help fossil fuel workers and communities transition to other economic sectors.

What they found: One conclusion is that "even a moderately stringent climate policy could create existential risks for the coal industry." Mining employs roughly 53,000 people and its economic importance to coal-dependent regions affects far more people still.

  • Another is that while new climate policies would further threaten coal-mining regions' ability to pay outstanding bond debt, their filings fail to capture this.
  • "[O]ur review of the outstanding bonds indicates that municipalities are at best uneven and at worst misleading (by omission) in their characterizations of climate-related risks," it states.

The bottom line: The report emphasizes the need for economic diversification of coal-reliant economies — and federal investment and support for these regions and their workers.

  • "A new source of government revenue may be required to push a serious economic development program across the finish line, and logical source of these funds would be a federal carbon price," it states.

Go deeper: Coal communities risk fiscal collapse (Washington Examiner)

Go deeper

Updated 56 mins ago - World

Mexican President López Obrador tests positive for coronavirus

Mexico's President Andrés Manuel López Obrador during a press conference at National Palace in Mexico City, Mexico, on Wednesday. Photo: Ismael Rosas/Eyepix Group/Barcroft Media via Getty Images

Mexican President Andrés Manuel López Obrador announced Sunday evening that he's tested positive for COVID-19.

Driving the news: López Obrador tweeted that he has mild symptoms and is receiving medical treatment. "As always, I am optimistic," he added. "We will all move forward."

Sarah Huckabee Sanders to run for governor of Arkansas

Sarah Huckabee Sanders at FOX News' studios in New York City in 2019. Photo: Steven Ferdman/Getty Images

Former White House press secretary Sarah Huckabee Sanders will announce Monday that she's running for governor of Arkansas.

The big picture: Sanders was touted as a contender after it was announced she was leaving the Trump administration in June 2019. Then-President Trump tweeted he hoped she would run for governor, adding "she would be fantastic." Sanders is "seen as leader in the polls" in the Republican state, notes the Washington Post's Josh Dawsey, who first reported the news.

Coronavirus has inflamed global inequality

Illustration: Aïda Amer/Axios

History will likely remember the pandemic as the "first time since records began that inequality rose in virtually every country on earth at the same time." That's the verdict from Oxfam's inequality report covering the year 2020 — a terrible year that hit the poorest, hardest across the planet.

Why it matters: The world's poorest were already in a race against time, facing down an existential risk in the form of global climate change. The coronavirus pandemic could set global poverty reduction back as much as a full decade, according to the World Bank.