The Reality of Unburnable Carbon and Financial Risks
Our analysis reveals the challenges in burning fossil fuel resources and the financial risks associated with high-cost, high-carbon projects. As capital costs of fossil fuel projects rise and clean energy becomes more affordable, over $1 trillion is at risk in the next decade. Financial risks are projected to exceed $20 trillion by 2050, emphasizing the need for a transparent understanding of climate and financial risks. Governments, regulators, and the private sector must grasp the implications of costly fossil fuels. Visit www.carbontracker.com for more information.
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Presentation Transcript
Anthony Hobley Chief Executive Officer Carbon Tracker Initiative
Exposing the reality of Unburnable carbon Only 20% of proven reserves can be burnt to keep global warming below 2 degrees celsius 2795 GtCO2 Total proven coal, oil and gas reserves 745 GtCO2 Proven coal, oil & gas reserves owned by listed companies 565 GtCO2 budget for 2 degrees (2010 -50) Remaining
What our analysis shows: We cannot burn all the fossil fuel resources creating so called "Unburnable Carbon", neither can we switch off fossil fuel energy overnight, but: Capital costs of fossil fuel projects is rising while the cost of clean energy is falling; Many high-cost/high-carbon projects are destroying value today, putting over $1 trillion at risk over the next decade (the Dirty Trillion? ) Financial risks rise dramatically, to over $20 trillion by 2050, in a world responding to climate change. This is potentially wasted capital deployed because the fossil fuel risk premium is not transparent; This tilts the investment playing field against clean energy; Therefore, Governments, regulators and the private sector need a much clearer understanding of the financial and climate risks at stake here; Including the costs to their economies and businesses of increasingly expensive fossil fuels under a business as usual approach. Talking points & research are to be found at www.carbontraker.com
Anthony Hobley Chief Executive Officer ahobley@carbontracker.org
