Subscribe to Receive the Daily Report

Saturday, May 30th, 2015

Norway fund could trigger wave of large fossil fuel divestments, say expertsDamian Carrington

Author:     Damian Carrington
Source:     The Guardian (U.K.)
Publication Date:     Thursday 28 May 2015 11.53 EDT
 Link: Norway fund could trigger wave of large fossil fuel divestments, say expertsDamian Carrington
Stephan:   In my view, coal is going to be the first carbon energy source to wither and die. It will always be mined because there are non-burning uses for coal in industrial chemistry.  But it will be a vastly diminished industry, operating under much tighter controls because its lobbying power will also diminish. Although it has gotten little coverage in the States I see the decision by Norway to divest from coal, as this  reports describes, as the latest and most powerful example of this transition out of carbon trend. A critical consensus is emerging in collective consciousness that coal is bad as an energy source, and one measurable way this is being expressed is by individual choices concerning investment in coal. This event may be the tipping point.
Other investors will follow Norway’s lead out of fossil fuels, say experts Credit: Michaela Rehle /Reuters

Other investors will follow Norway’s lead out of fossil fuels, say experts
Credit: Michaela Rehle /Reuters

Norway’s decision to dump all coal-focused investments from its $900bn sovereign wealth fund could unleash a wave of divestment from other large funds, according to investment experts. The fund, the largest in the world, is one of the top 10 investors in the global coal industry.

The move, agreed late on Wednesday, is one of the most significant victories to date for a fast-growing and UN-backed fossil-fuel divestment campaign. It will affect $9bn-$10bn (£5.8-£6.5bn) of coal-related investments, according to the Norwegian government.

“Investments in coal companies can have both a climate risk and a future financial risk,” said Svein Flaatten of the governing Conservative party, which made a cross-party agreement to implement the selling of coal investments.

A series of analyses have shown that the world’s existing reserves of fossil fuels are several times greater than can be burned while keeping the temperature below the 2C […]

Read the Full Article