Fossil fuel companies risk wasting almost $1.6tn on oil, gas and coal projects that will become uneconomic if the world steps up efforts to tackle climate change, according to an analysis of projected capital expenditure in the energy sector. The figure represents the difference between the estimated $4.8tn of investment needed to meet global fossil fuel demand between 2018 and 2025 under current climate policies and the $3.3tn that would be required if the Paris agreement on reducing carbon emissions was fully implemented. The study, by Carbon Tracker, a climate think-tank, illuminates one of the most difficult questions facing the energy industry: how much more capital should be committed to hydrocarbons in an era of increasing competition from renewable power. Institutional investors are also beginning to focus on the issue at the urging of regulators, led by Mark Carney, Bank of England governor and chairman of the G20’s Financial Stability Board, who has warned of “potentially huge” losses from fossil fuels which could become “literally unburnable”. Andrew Grant, author of the Carbon Tracker report, said current government policies fell “a long way short” of the commitment made at the Paris climate summit in 2015 to limit the average rise in global temperatures to well below 2 degrees Celsius above pre-industrial levels.
FT 8th March 2018 read more »
Fossil fuel companies risk wasting more than £1 trillion of expenditure by 2025 if they do not take the world’s climate goals into account, experts say. Businesses which “overinvest” in marginal oil, gas and coal projects based on the current policies of governments could destroy shareholder value worth billions of pounds, a Carbon Tracker report said. This is because of the gap between present policies, which would lead to temperature rises of 2.7C above pre-industrial levels, and what is needed to meet the goals of the Paris climate deal to limit them to between 1.5C and 2C.
Energy Voice 8th March 2018 read more »
Another firm is seeking a sweeping injunction against environmental protesters, drawing accusations that the legal move is “draconian and chillingly anti-democratic”. UK Oil and Gas (UKOG) has applied for a broad injunction to prevent campaigners from mounting protests that it says would unlawfully interfere with its operations. The injunction, if granted by a judge, would cover all campaigners who organise protests at the firm’s three sites in the south-east of England where it wants to drill for oil. Anyone breaking the injunction faces being jailed, fined or having their assets seized. The application, which is due to be heard at London’s high court on 19 March, has been condemned by campaigners who fear that corporate firms are increasingly attempting to use a heavy-handed legal weapon to close down dissent. Keith Taylor, Green MEP for the region, said the move was “chillingly anti-democratic”. “This is an absolutely outrageous move by a firm that has no social licence for its environmentally destructive drilling operations, and instead is seeking a draconian injunction to bludgeon local people’s right to peaceful and lawful protest.”
Guardian 7th March 2018 read more »