For some, the massive write downs of oil & gas assets recently are just the start of what looks set to be a painful death for the fossil fuel industry. If we’re to take the predictions of the renowned think tank Carbon Tracker at face value, increasing climate action and the rise of cleantech is likely to slash the value of fossil fuel assets by nearly two thirds. In such a case, the investors who’ve been attempting to usher oil & gas giants down the path marked “transition” will be doomed to take a hit too.
But what is the flipside here? Just this week, we’ve seen Tesla’s market value surpassing Exxon’s - a sign investors are increasingly betting on the transition. Where will further disruption to the fossil fuel sector come from, and is it investible? Can investment in green be the other side of the coin to fossil fuel divestment?
Fossils out, green in?
Kingsmill Bond from Carbon Tracker says you can’t just replace A with B. “Oil & gas …