Bet on countries missing the 2 degrees goal fuels Carbon bubble
Disproportionate investment into still buried fossil fuels creates risky, enormous market bubble
23.04.2013 |The Guardian
The Guardian reports on a study which found that the cost of switching from fossil to renewable fuels was estimated at 1% of the global GDP. Also, another recent study finds that the same amount is currently invested into finding and claiming still buried fossil fuels.
With the enormous investment an economic market bubble is fuelled which bets on countries missing the goal of keeping climate change at 2 degrees and thus not switching to renewable in time. With a switch to renewable, the investments into fossil fuels would become worthless and trillions of dollars would be lost. The imploding carbon bubble would be even worse than the recent financial crisis.
However, the growing carbon bubble and its steadily rising investment threaten to entirely stifle growth of renewable energy. Therefore, WECF further calls for a policy driven up-scaling of renewable energy sources together with a rigorous but proportionate down-scaling of fossil fuels, to keep the bubble from growing even more. Otherwise, panicked and sudden policy-driven reactions on climate change might cause an extreme burst of the bubble.
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