Investors in carbon-intensive business could see $6 trillion wasted as policies limiting global warming stop them from exploiting their coal, oil and gas reserves, says a report by the Carbon Tracker Initiative and the London School of Economics, reports Sally Bakewell at Bloomberg News. Fossil fuel industries invested well over half a trillion dollars last year in finding and developing reserves; at that rate, over a decade, the total investment would amount to more than $6 trillion. But up to 80% of the reserves of fossil fuel companies would be “unburnable” if the world is to achieve the UN climate target of limiting warming to a 4 degree Fahrenheit rise in temperature, said the study. Furthermore, noted a study researcher, national air quality concerns and the falling price of solar and wind technologies should drive investors to seek low carbon opportunities. The report calls on finance ministers to incorporate climate change when assessing risk in the capital markets, and urges financial regulators to require companies to report CO2 emissions embedded in their fossil fuel reserves. It added that ratings agencies should also address climate change as part of efforts to tackle risk.
Join the swelling numbers of voters TELLING Congress they’ll vote for Clean Energy candidates here: http://signon.org/sign/we-are-the-clean-99?source=c.em.cp&r_by=487176 . This is an ongoing campaign (the next Congressional election is in 2 years!) so please, spread the word. It’s our way of telling Congress that a strong clean energy voting bloc is out there. This is how YOU can make a difference.
For more on Climate Change, check out my weekly column at the HuffingtonPost, Climate Change This Week : http://www.huffingtonpost.com/author/index.php?author=mary-ellen-harte
A new study said fossil fuel investors could face a $6 trillion “bubble” as nations begin to regulate carbon pollution. [Bloomberg] http://www.bloomberg.com/news/2013-04-18/carbon-intensive-investors-risk-6-trillion-bubble-study-says.html
See the report: http://www.carbontracker.org/wastedcapital
Mar 21, 2013 – In the current political and economic environment, fossil fuel investments are looking much more risky than at any other time in history.