Financial Times – Andrew Ward
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?
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