According to reports circulating throughout the media, the G20 forum has launched a joint probe into the possible global financial risks presented by fossil fuel companies investing in future developments that run contrary to international climate goals.
A report in The Telegraph this week highlights the International Energy Agency’s view that “two thirds of all assets booked by coal, oil, and gas companies may be worthless under the ‘two degree’ climate deal” currently seen as optimal by experts and politicians. Specifically, leaders from within the G20 nations are concerned that the approximately $6 trillion worth of investment into oil, gas, and coal since 2007 “is based on false assumptions” and may end up creating a glut of “stranded assets.”
Subsequently, The Telegraph believes that the G20 has asked the Financial Stability Board in Basel — an international body designed to monitor and make recommendations about the global financial system — to begin a public inquiry into the possible fall-out faced by the global financial system if the proposed climate rules are put into place, and become ever more strict.
The investigation into the possible stranded assets is being pushed by France, according to “diplomatic sources” speaking to The Telegraph.
France’s concerns are not without merit, however, if a recent report from HSBC is any indicator. Britain’s multinational banking and financial services company, HSBC Research recently published a report highlighting the danger caused by possible stranded assets to investors.
But HSBC’s concerns will pale in significance if the Financial Stability Board concludes that the $6 trillion worth of new investments into the fossil fuel industry may end up as stranded assets.
I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.