Investments in fossil fuels by council pension funds could become less valuable as the energy market transforms, warns a new report. The 50 strong group of Nuclear Free Local Authorities (NFLA) says that investments in fossil fuels – including coal mines, oil wells, power stations and conventional vehicles – could lose their value when the world moves decisively to a low-carbon economy. NFLA’s report examines divestment from oil and nuclear weapons and argues that fossil fuel reserves and production facilities could become what is known as “stranded assets”. This refers to companies’ coal, oil and gas deposits that may never be monetised as the world transitions away from its reliance on oil. NFLA adds that “many funds” are actively investing in renewable energy alternatives with increasing success.
The Ferret 14th Sept 2021 read more »