Companies that misread global demand for fossil fuels could waste up to $220 billion (U.S.) by 2025 on new Canadian projects that aren’t needed, according to a report that sees coal and oil taking the biggest hit.
Globally, the London-based Carbon Tracker Initiative sees $2 trillion in newly developed fossil fuel assets at risk of being stranded because the additional energy they supply will no longer be needed or economical in an emissions-constrained economy.
“This is where shareholders should be concerned – if companies are committing to future production which may never generate the returns expected,” the report warns.
The analysis assumes the world will take the necessary actions to limit average global warming to no more than 2 degrees C above pre-industrial levels.
Within that context, rapid deployment of clean energy technologies and increasingly restrictive climate policies, starting with government actions that emerge from the upcoming Paris climate summit, will dramatically reduce demand for fossil fuels.
An example of such actions came Monday, when Ontario became the first jurisdiction in North America to pass legislation that bans the use of coal for electricity generation. On Tuesday, the province also promised a bigger push toward vehicles that use electricity instead of gasoline.
BlackRock, the world’s largest institutional investment manager, said in its own report last month that investors need to start paying attention. “Climate change risk has arrived as an investment issue.”
The Carbon Tracker report argues that no new coal mines will be needed, though existing coal mines will likely be expanded. Global demand for oil will peak around 2020, it says.
“This means that the oil sector does not need to continue to grow, which is inconsistent with the narrative of many companies,” it states. “The countries with the largest amount of capital expenditures not needed over the next decade are the U.S., Canada, Russia, Mexico and Kazakhstan.”
Canada is sec
As the sun beat down on a small array of solar panels in front of City Hall today, Mayor Carolyn Goodman announced Las Vegas would be the first city of its size to be powered by 100 percent renewable energy.
The city will expand its partnership with NV Energy to encompass a mix of energy-efficiency programs, a large-scale solar project and purchasing agreement to reach its goal.
The city will make the switch in January 2017, pending approval by the state’s Public Utilities Commission.
“Every city light, city park, community center, fire station and service yard will be 100 percent covered by renewable energy,” Goodman said.
NV Energy CEO Paul Caudill joined Goodman and other local officials in making the announcement. Caudill, who made a similar deal in August with data company Switch, said solar will be the predominant form of renewable energy in the company’s portfolio once the deal takes effect.
The city will be entitled to a portion of energy from a 100 megawatt solar project being built by SunPower near Boulder City in the Eldorado Valley. NV Energy will buy the power from the solar company and transmit it to the city.
The cost of solar for NV Energy will be about $48 a megawatt hour — a price drop of more than 50 percent over the past five years in Nevada for large-scale solar projects.
“It’s cheaper than what we could build a new natural gas plant for,” Caudill said.
The city will pay a premium to go 100 percent renewable.
The money it pays for the renewable energy will offset what it would be using for carbon-based electricity.
Energy-efficiency programs and other conservation measures have saved the city more than $20 million in the last five years. The city says new efforts will save the city an additional $250,000 a year and will offset the cost for the new solar energy and the other existing renewables.
ity officials and business leaders heralded the news as a way to cut emissions and attract businesses. It is a major branding opportunity, said
It's only a matter of time. Before the coal babies cry about Obama. Only a few days until the climate Summit.
And SLTD 3x bigger! LOL! No income to $50 million in 2 years, and $100M next year.
Add Australia to your terrorist country list. Greg Hunt Australia Environment minister takes climate change "very personal"
Dipper? My dipper works fine. LOL! It's made of aluminum which lasts for years so I can dip for things.
Like dip for water....
Just busting your pump and dump FRAUD! And NOT taking that work lightly...
COAL REALLY IS DEAD!