“Not a single tar sands project is likely to pay back investors under a 2°C global warming scenario, Carbon Tracker found.
BY NICHOLAS KUSNETZ, SEP 6, 2019
“The world’s leading oil companies increasingly have argued that they must be part of the world’s transition to a low-carbon future. But a new report shows that despite their rhetoric, they continue to spend their money as if that transition may never come.
“In just the past year, the biggest global companies committed billions of dollars to projects that will likely lose money if the world slashes fossil fuel use fast enough to meet the Paris climate accord goals, the report, released Thursday night, shows. That poses serious risks to investors. “While they may say they support the Paris Agreement, whatever that means, it’s not reflected in their behavior,” said Andrew Grant, a senior analyst at Carbon Tracker Initiative, a financial think tank focused on energy transition.
“In effect, oil companies are giving the world—and their investors—an either-or proposition: Either their balance sheets go bust when oil demand plummets, or the world does as warming soars past 2 degrees Celsius (3.6°F). It’s one or the other, the report says.
“The oil and gas industry has come under increased pressure from investors who want to know that the companies they finance are navigating a future of dropping fossil fuel demand. Those investors include a broad swath of society, from large financial institutions to public pension funds…”
“In response, some companies have been trying to show they are taking the issue seriously. Many have committed to lowering the emissions associated with producing and refining oil and gas. Some have been spending significant sums on renewable energy and electric car charging infrastructure (though that spending still represented only about 1 percent of the industry’s budget last year, according to one report). And several are pushing for a carbon tax. “The new analysis by Carbon Tracker looks much deeper, examining specific projects that energy companies are planning, and trying to determine whether or not they actually fit with the Paris goals. Carbon Tracker did not examine the emissions associated with the projects, but instead focused entirely on their finances: “The logic we use is that of the market,” Grant said….”
We provide the Full Article Link, but do not try to make the whole article ours. It does not belong to us. We only give you a flavour of it, so you can make up your own mind if you like and want to support the award-winning journalism behind it, like we do. Of course, we do not or could support all the points made in any article we highlight, but that is part of living in a democracy. We believe the material is relevant to all and is necessary for their personal judgments.