With Clean Technology and climate policy reducing the need for fossil fuels, energy companies who fail to transition risk of wasting up to $2.2tn in the next decade, according to a new report from the think-tank Carbon Tracker Initiative. “Misreading these trends will destroy shareholder value,” the authors state. The US is the most financially exposed with $412 billion worth of fossil fuel projects at risk of becoming stranded assets, followed by Canada, China, Russia and Australia. On another note, figures today reveal that things are looking particularly grim for iron ore, which may be on the edge of dropping into the $30 ranger per metric tonne. The London Metal Exchange Index of 2˚C base metals is heading for a 26% fall this year and prices are at multi-year lows. Furthermore, the COP21 talks have increased the number of investors rejecting coal, gas and oil, according to campaigners today. As we previously noted, for the world's metals-mining sector to survive, more companies may have to go bankrupt.
With Clean Technology and climate policy reducing the need for fossil fuels, energy companies who fail to transition risk of wasting up to $2.2tn in the next decade, according to a new report from the think-tank Carbon Tracker Initiative. “Misreading these trends will destroy shareholder value,” the authors state. The US is the most financially exposed with $412 billion worth of fossil fuel projects at risk of becoming stranded assets, followed by Canada, China, Russia and Australia. On another note, figures today reveal that things are looking particularly grim for iron ore, which may be on the edge of dropping into the $30 ranger per metric tonne. The London Metal Exchange Index of six base metals is heading for a 26% fall this year and prices are at multi-year lows. Furthermore, the COP21 talks have increased the number of investors rejecting coal, gas and oil, according to campaigners today. As we previously noted, for the world's metals-mining sector to survive, more companies may have to go bankrupt.