US climate change envoy acknowledges stranded assets
Todd Stern said on Monday that the world’s fossil fuels will "obviously" have to stay in the ground in order to solve global warming. This is the clearest sign that the administration sees no long-range future for fossil fuel.
This means that governments including the US will have to pass legislation to forgo developing reserves of oil, coal and gas. This will impact on certain southern and mid-western states considerably.
"It is going to have to be a solution that leaves a lot of fossil fuel assets in the ground,…..We are not going to get rid of fossil fuel overnight but we are not going to solve climate change on the basis of all the fossil fuels that are in the ground are going to have to come out. That’s pretty obvious."
He went on to say:
"Companies and investors all over are going to be starting at some point to be factoring in what the future is longer range for fossil fuel,"
Again I repeat my concern that the cost of this should eb felt by the companies and not the tax payer.
The group of Harvard students, who have to date been frustrated by the university's refusal to shed fossil fuel stocks from its investment portfolios, are now moving the pressure to the courts.
A lawsuit on was filed in Suffolk County Superior Court in Massachusetts against the president and fellows of Harvard College, among others, for what they call "mismanagement of charitable funds." The recent comments by Todd Stern may have an impact on their argument which is detailed in an 11-page complaint, with 167 pages of supporting exhibits, they ask the court to compel divestment on behalf of the students and "future generations."
China to set up Carbon Market
Again showing leadership China has announced that as the world’s largest greenhouse gas emitter, it plans to start a nationwide carbon market in the next two years following a pledge to cap emissions by 2030.
German Energy Company to spin off fossil fuel division
Finally another indicator of where the wind is blowing. Germany's biggest utility firm, E.ON, has announced plans to split in two and spin off most of its power generation, energy trading and upstream businesses.
E.ON has decided to focus on its renewable activities,
The pace of change continues to grow on the issue of fossil fuel disinvestment.