Monday, March 31, 2014

No Advantage in Fossil Fuels

Sometimes we get told that investing in fossil fuels has some economic benefit. But does it?

The Climate Proofing your Investments report finds that it's no more profitable than investing in non fossil fuel companies.

No benefit to fossil fuel investment

The difference with fossil fuel investments is risk of what finance people call "stranded assets". Basically it means that as the world moves away from fossil fuels the value of those companies drops. After all, a coal mine isn't worth as much if people aren't buying coal.

Anyway, it's a risk you don't have to worry about - unless you, you bank or your superannuation fund is investing in fossil fuels - which they probably are.

PS. Ben Caldecott, from Oxford University is speaking at Southbank, Brisbane this Thursday night, for those interested in the finance aspect. (Or hear his interview on ABC's Radio National.)

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