Carbon Bubble Threatens Investments

The carbon bubble threatens the investments of small investors as well as large, according to a recent article by Carol Clouse in The Guardian. When Big Oil’s unburnable reserves become stranded, these companies’ shares will experience a sudden and steep devaluation. As evidence mounts that fossil fuel companies will be required to “keep it in the ground”, the article says “a growing number of investors…see global warming not only as a looming environmental problem but also an investment risk.

Some fund managers are ringing alarm bells as well. BlackRock, the world’s largest asset manager with almost $5tn in assets, issued a report last month recommending investors include climate risks in their decisions. … The bottom line: the financial risks posed by climate change could make an ugly dent in your retirement savings if you don’t pay attention.”  Read the full article here.

Fossil Free California’s Sandy Emerson, who was interviewed for the article, says, “Signing the pledge at divestInvest.org to divest from fossil fuels was the beginning of my divestment activism. Divestment sends a strong message to oneself, as well as to Big Oil, that “business as usual” must change. If you have investments, or want your 401k or 403b to offer a low-carbon option, check out the resources at divestinvest.org or fossilfreeca.org.

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