The energy company is seemingly on the same page as the Energy Minister.
The post Why is the AGL (ASX: AGL) share price sliding lower on Monday? appeared first on The Motley Fool Australia. –
The AGL Energy Limited (ASX: AGL) share price is slipping today despite reports Federal Energy Minister Angus Taylor believes a net-zero carbon target won’t mean net zero emissions.
According to reporting by the Australian Financial Review (AFR), Taylor told the publication’s Energy and Climate Summit that offset schemes will be crucial in Australia’s decarbonisation strategy.
It’s seemingly good news for AGL, Australia’s largest carbon emitter. The company has been battling calls to move away from coal-fired power and towards more climate-friendly energy production. Meanwhile, it’s watching its bottom line dip lower.
At the time of writing, the AGL share price is $6.145, 1.68% lower than its previous close.
Let’s take a closer look at how today’s AFR Energy and Climate Summit is going for AGL.
Energy and Climate Submit spells good news for AGL
The AGL Energy share price is slipping despite a few bright spots for the company at today’s AFR Energy and Climate Summit.
The most obvious win came from Energy Minister Angus Taylor.
Taylor reportedly told the conference Australia won’t be enforcing zero emissions or carbon taxes. Rather, it will encourage emission reduction measures, carbon capture and storage programs, and blue hydrogen. Blue hydrogen is hydrogen derived from methane in natural gas. He was quoted by the AFR as saying:
Our government will always stand up for our traditional industries, and their crucial ongoing role in underpinning our economy and reducing emissions,
we are on the side of not adding costs for customers.
In a similar vein, the publication reports AGL’s customer service chief Christine Corbett told the summit the energy provider is struggling to go green without increasing customers’ bills.
Corbett said only around a third of energy customers care about renewable power while 80% are concerned about prices.
Earlier, AGL’s CEO Graham Hunt spoke on AGL’s move away from coal-fired power at the conference, saying:
[W]e do need to leverage off the sunk infrastructure, the skilled workforces, and we’ve got to do that in advance of planned closures.
Such commitment to coal comes despite 55% of its shareholders recently voting for AGL to implement Paris Agreement-aligned emissions targets.
AGL share price snapshot
Today’s dip is just the latest for the AGL share price.
The company’s stock is now trading for 49.5% less than it was at the start of 2021. It has also lost 54.7% of its value since this time last year.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.