Still, with an increasing number of economists warning of fossil
fuel investments becoming «stranded assets», there's a sound economic case to be made for divestment.
Not exact matches
Fuel theft is fast
becoming one of Mexico's most pressing economic and security dilemmas, sapping more than $ 1 billion in annual revenue from state coffers, terrorizing workers and deterring private
investment in aging refineries that the government, following a 2014 energy reform, hoped instead would be thriving with foreign capital.
Growth has been
fueled by the growth of household and foreign debt rather than by business
investment, and we have
become dangerously reliant on the resource sector.
If radical action against fossil
fuels becomes necessary, these
investments will suddenly turn bad.
According to the the Marshall Foundation, «Sixteen nations, including Germany,
became part of the [Marshall] program... European nations received... shipments of food, staples,
fuel and machinery from the United States and later resulted in
investment in industrial capacity in Europe.»
Unfortunately, a below average operating performance
fueled by a distracting and misguided international growth plan, combined with a disastrous
investment record, has
become the defining characteristic of Commercial Metals.
However, if some (or many) of these efforts have some smoke - and - mirror aspect to them, or if they
become the seemingly easy «solution du jour» and allow us to think that we can avoid larger solutions (
fuel efficiency standards; carbon tax, or firm carbon cap combined with a robust and regulated carbon credit trading mechanism; substantial
investments in new energy technologies; energy conservation; etc.), their net impact can be more damaging than beneficial.
In fact, many people (including the Governor of the Bank of England) are increasingly concerned that most fossil
fuels are unburnable, meaning many existing reserves and
investments in future exploration are in very real danger of
becoming worthless.
Fossil
fuel investments could
become the «sub-prime assets of the future,» warned British energy secretary Ed Davey.
As a recent report by the Carbon Tracker Initiative highlights, grid costs
become prohibitive for coal in rural areas when the
investment needed to build a thermal power plant is combined with the cost of building electricity grid extensions and importing
fuel.
Yet if you know the price of energy will keep going up over time,
fuel efficiency
becomes a prime consideration the next time such an
investment needs to be made.
However, if H2 will
become profitable sooner, new
investments in fossil
fuels will stop and will go to
investments in H2 and RE.
But consider this: if the cost of PV / electrolytic or cyanobacterial
fuel (using environmental CO2)
becomes competitive with current natural gas, an
investment in such a plant is completely hedged, in terms of being «green».
Super funds and banks are
becoming under increased pressure to divest thermal coal and other fossil
fuel investments and account for their lending and direct equity portfolios.
Earlier this month, Unity College in Maine
became the first in the nation to meet our demands and fully divest from fossil
fuels (Hampshire College in Massachusetts has also passed a sustainable
investment policy that effectively divests them from fossil
fuels).
The southern New Zealand city of Dunedin has
become the latest to vote to drop millions of dollars of
investments in fossil
fuels, in a bid to slash carbon emissions and limit the impacts of climate change...
Given that Cape Town is seeking to
become more resource - efficient and resilient, it is hypocritical for the municipality to retain its
investments in fossil
fuels, which worsen the impact of climate change.
This strategy rests on the assumption that
investments and follow - up can reduce the costs of renewable energy technologies and enable them to
become competitive with conventional fossil
fuel - based technologies.
In 2012, Bills article «Do the Math» for Rolling Stone magazine
became one of the most read articles in the magazine's history and changed the way the world thought about
investment in fossil
fuels.
Suddenly
investments in U.S. corn - based ethanol distilleries
became hugely profitable, unleashing an
investment frenzy that will convert one fourth of the 2009 U.S. grain harvest into
fuel for cars.