Topic updates
Will the bursting of the carbon bubble cause a financial crisis?
5th June 2018
This is classic Guardian: but it might be a significant issue, nonetheless. The so-called 'carbon bubble' reflects a view that lots of companies whose value rests on their current share price will see that value disappear as the global economy moves towards a low-carbon world.
If this happens quickly, it's argued that this could trigger a financial crisis. However, if it were slower, you'd expect that much of this will be obviated - the value of these companies is likely to be shifted to new, carbon-friendly companies.
More here from this BBC news article
As the price of clean energy drops, investments in fossil fuels are risky and could be left stranded. Investors should take note of this @NatureClimate study, so we can avoid another global financial crisis. https://t.co/A8KBUSMg2a
— Al Gore (@algore) June 4, 2018
Trillions of dollars of fossil fuel wealth will be wiped out at some point over the next 17 years even if governments fail to impose binding carbon emissions limits on industry.. https://t.co/BveyE5kTnJ
— Ann Pettifor (@AnnPettifor) June 4, 2018
I've been beaten to it by the @CambridgeEcon account and @Neil_R_Edwards but our paper on stranded assets in @NatureClimate is now out. Summary: Trillions of dollars of assets at risk, even without further policy. Financial crisis possible. https://t.co/QRYWxnjUuD
— Hector Pollitt (@HectorPollitt) June 4, 2018
“Individual nations cannot avoid the situation by ignoring the Paris Agreement or burying their heads in coal and tar sands” https://t.co/UZhdrTwlAI
— Cambridge University (@Cambridge_Uni) June 4, 2018
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