Please check out the new WECF website on wecf.org!

Stay here to browse our website archive (2004-2018).

WECF Deutschland

WECF France

WECF Nederland

Facebook

Twitter

YouTube

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.


Related News

Meet the Winners of the Gender Just Climate Solutions Award at COP24
On the 70th anniversary of the Universal Declaration of Human Rights, we awarded Gender Just Climate Solutions Winners at the climate negotiations in Katowice, Poland
11.12.2018

Women and Gender Constituency Joint Statement On SB48
Real commitment to rights-based, gender-just solutions to climate change is imperative for the effective implementation of the Paris Agreement.
18.06.2018

Bonn Climate Talks: Slow Progress but the Gender Action Plan is rolling!
WECF was in Bonn from April 30th to May 10th. Read below our comments.
28.05.2018

SB48 Side Event “Access to climate finance for non-state actors”
WECF to launch energy community study and to introduce gender-just energy cooperative model in Georgia
11.05.2018

Climate Action: Where Do We Want To Go?
Read our Anne Barre's story as shared during the Talanoa Dialogue, 6 May 2018
07.05.2018