Shares of coal companies skyrocketed following news the U.S. Supreme Court moved to place a halt to the Obama administration’s Clean Power Plan (CPP).
Peabody Energy, the world’s largest private coal company, saw its shares jumped 10.7 percent, as did Wyoming-based Cloud Peak Energy, whose shares surged 18.7 percent.
The Supreme Court, in a 5-4 decision, halted the implementation of the Environmental Protection Agency’s CPP — which forces states to reduce carbon dioxide emissions from fossil fuel burning companies 32 percent by 2030.
The Supreme Court’s decision ultimately approves the requests of 27 states and several companies to put a halt to the CPP. One of the state’s leading the charge against the CPP is coal power dependent West Virginia.
“Make no mistake – this is a great victory for West Virginia,” West Virginia Attorney General Patrick Morrisey, said in a statement on the announcement.
He added: “We are thrilled that the Supreme Court realized the rule’s immediate impact and froze its implementation, protecting workers and saving countless dollars as our fight against its legality continues.”
The news of the Court’s decision acts as a palliative for the coal industry, which has seen its energy market share sag massively since the early 2000s.
The market upheaval, which was caused in large part by heavy regulations emanating from the White House, has prompted several of the country’s largest coal companies to stagger, with some having to file for Chapter 11 bankruptcy.
The coal market turmoil prompted Illinois-based Alliance Coal to announce last week that it would be laying off nearly 300 employees in 2016. The company cited low natural gas prices, “overreaching regulations” and a glutted market as the reason for the layoffs.