U.S. oil companies ramp up production, accelerating climate emergency in blatant disregard of IPCC science
“Shell and ExxonMobil will be among the leaders with a projected production increase of more than 35% between 2018 and 2030 – a sharper rise than over the previous 12 years. The acceleration [opposes] the 45% reduction in carbon emissions by 2030 that scientists say is necessary [to meet] 1.5C.”
“…the US is the centre of the latest global oil boom, with more than four times more new production than the next country, Canada, over the next 10 years. The expansion will primarily be in the Permian basin in Texas. BP, Chevron and ConocoPhillips will be involved, as well as smaller, faster-growing private firms that are together driving this single US state to produce more oil and gas than all of Saudi Arabia by 2030.”
World’s largest banks (top 3 from U.S.) continue to expand fossil fuel infrastructure investments in 1H2019
“The world’s largest investment banks have provided more than $700B of financing for the fossil fuel companies most aggressively expanding in new coal, oil and gas projects since the Paris climate change agreement … [updating Rainforest Action Network’s] Banking on Climate Change 2019 report from April, which showed the practices of key investment banks were aligned with a climate disaster.”
World’s three largest money managers (all from U.S.) are funding $300B of fossil fuel expansion
“Using money from people’s private savings and pension contributions BlackRock, Vanguard and State Street, which together oversee assets worth more than China’s entire GDP, have continued to grow billion-dollar stakes in some of the most carbon-intensive companies since the Paris agreement...
…their effective thermal coal, oil and gas reserve holdings through the companies they manage have surged 34.8% since 2016. This means they are now the largest investors in public oil, gas and coal companies, managing funds for large pension funds, university endowments and insurance companies.”
The case for de-financing fossil fuel infrastructure
So what would happen if, tomorrow, Chase announced that it was going to phase out lending to the fossil-fuel industry—probably first by restricting loans for particular projects, and then by ending general corporate lending and banning the underwriting of new debt and equity for fossil-fuel companies? “Wells Fargo and Citi would follow within days,”…And this would have global ramifications—the music would stop, very suddenly.” Everyone knows that the fossil-fuel era will come to an end sooner or later; a giant bank pulling back would send an unmistakable signal that it will be sooner.
How divestment from fossil fuels can benefit your investment portfolio
“Divestment is a wise financial decision judging by the performance of fossil-fuel free portfolios. Reallocating that capital to innovative new technologies that support clean, renewable energy can also improve portfolio performance. Investors face significant risk in holding securities tied to the incumbent fossil-fuel economy.”
Pathway to a sustainable future
"The One Earth Climate Model says we can curb temperature rises without resorting to nuclear power or using unproved technologies. It will be expensive–but far less than the subsidies we currently give fossil fuel companies."
U.S. leading oil & gas expansion
“The U.S. is doubling down on fossil fuels with a boom in oil and gas production that puts a safe climate at risk,” …“The scale of new production forecast from the U.S. is staggering, no other country comes even close.”
The National Academies' Deep Decarbonization Study
“We know that if we’re going to continue to delay we’re going to have continued investment in high-carbon technology and infrastructure, and that in turn leads to carbon lock-in and/or stranded assets.”
Fossil fuel industry expanding
"A fossil-fuel titan’s strategy is at odds with efforts to hold back climate change."
Transitioning to a low carbon economy
“Never before have the economics of a transition to net-zero emissions been so favorable, particularly as levelized costs of many renewable energy sources (without subsidies) and storage have dropped to be at or below the cost of coal and natural gas. In an industry in which capital investments can have useful lives of 40 or more years, it is imperative that utilities ensure that near-term capital investments are consistent with the goals of achieving deep decarbonization.”
Big bank hypocrisy
“The top four financial institutions supporting the fossil fuel industry are all American: JP Morgan Chase, Wells Fargo, Citi, and Bank of America. Two more, Morgan Stanley and Goldman Sachs, aren’t far behind. This is despite all six of these major U.S. banks publishing a joint statement, in the months leading up to the adoption of the Paris deal, acknowledging the threat of climate change, pledging financial support for solutions, and calling for a “more sustainable, low-carbon economy.”
Central banks push for green finance
“A ‘massive’ reallocation of capital is necessary to prevent global warming, with the banking system playing a pivotal role.
The report marks the first time that such a large group of central banks has set out the links between rising temperatures and risk to the economy. It pointed to research done both by academics and financial institutions quantifying the threat and said climate change is “a source of financial risk” that falls well within the mandate of central banks and regulators.”
Financial sector is key to addressing climate change
“If investors do not reevaluate the current capital flows to companies unwilling or unable to diversify their business models in line with a two degree scenario, investors are in effect expecting returns on assets in companies that eventually must be written off for the planet to be safe. Increasing flows to sustainable business models and restricting flows to unsustainable business models are imperative for the future of this planet — and from an economic perspective as well.”