Pop, pop, pop!

The Price of Doing Nothing“God punishes immediately,” they say in The Netherlands. The URI Foundation decides not to divest from fossil fuels and the popping carbon bubble rears its ugly head with a vengeance.

  • In Shift, Exxon Mobil to Report on Risks to Its Fossil Fuel Assets:

    The shift is a sign of a growing acceptance among investors and companies that the value of fossil fuel assets may be out of line with evolving policies on global warming.

  • Carbon Bubble: The Price of Doing Too Little Too Late

    Public and private financial institutions continue to pour millions into fossil fuel companies, inflating their share prices, as if their fossil reserves will always sell on the market. This is a wrong assumption. Instead, if we are serious about limiting global warming to 2 degrees Celsius, these reserves must be kept firmly in the ground, which would turn them into stranded financial assets. McKinsey and the Car- bon Trust have calculated that this could endanger more than 30-40% of company value. Popping this bubble could therefore create a carbon shock with severe consequences for our financial system.

  • The arguments go in the right direction in The Financial Case for Divestment of Fossil Fuel Companies by Endowment Fiduciaries. The arguments seriously underestimate the risk in not taking into account that our emission budget is only about 500GtC instead of the 900GtC mentioned in this article. The latter are based on the assumption that a 2°C increase in the global average temperature is safe, which it’s not, as explained in great detail by Hansen and friends.
  • A Fossil-Fueled Bombshell: Believe it or not, Shell — of all companies — gets it!Shell in its 2013 annual report:

    If we are unable to find economically viable, as well as publicly acceptable, solutions that reduce our CO2 emissions for new and existing projects or products, we may experience additional costs, delayed projects, reduced production and reduced demand for hydrocarbons.

    Corporations get it but corporatized higher education is still in denial. That really makes you wonder about their slogans and rhetoric. Of course, their CEOs are really just amateurs for the most part.

In the Rhode Island legislature, doing too little too late is a perfect occasion for marveling at how Rhode Island will become the shining example for the whole USA.

Would that self-congratulation could save the Earth!

More on popping the popping carbon bubble:here and here

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