Skip to main content

Carbon companies becoming estranged from financial world

December 08, 2020

Financier Worldwide:

The argument over anthropological causes for our changing climate are all but over. Whether it is the highest temperature ever recorded in Death Valley in California at over 54°C, or the town of Verkhoyansk in the Artic sweltering in 38°C, the signs of our impact on the planet are clear. Our subsuming reliance on fossil fuels has driven atmospheric carbon dioxide levels to over 409 parts per million in 2019, an increase of some 46 percent compared to pre-industrial levels.

Investors are starting their journey on climate change risk management. They have already begun to implement measures to reduce their exposure, such as excluding thermal coal and investments in certain types of oil and gas projects. The Institute for Energy Economics and Financial Analysis (IEEFA) recently reported that some 50 global financial institutions have introduced policies restricting oil sands and oil and gas drilling in the Arctic in response to concerns around climate risk. 

[Mohammed Chunara and Alba Fuentes Delpon]

More: Upstream oil & gas, the Paris Agreement and climate risk

Join our newsletter

Keep up to date with all the latest from IEEFA