Name: Fossil fuel shares drop in value compared with clean energy, think tank says
Brand: reuters.com
SKU: reuters-com-2762
Availability: OnlineOnly

critic

Fossil fuel shares drop in value compared with clean energy, think tank says

preview

By LONDON (Reuters) - The value of share offerings in fossil fuel companies dropped by almost 20% since 2012, while low-carbon companies gained ground in the shift towards clean energy, a report by think-tank Carbon Tracker showed on Wednesday.From 2012 to 2020, investors have bought almost $640 billion of equities issued by oil, gas and coal producers, fossil fuel- dependent utilities, pipelines and service companies.However, their investments have lost roughly $123 billion or nearly 20% in value, despite bullish equity markets during much of that period.That contrasts with activity in clean energy. Investors bought $56 billion in equity from clean-energy companies, which has gained $77 billion in value, the report said.“Investors have woken up to the fact that fossil fuel companies are no longer the growth stories they once were,” said Henrik Jeppesen, the report’s author and U.S. head of investor outreach.“Climate risk is now very much a material one that cannot be ignored, and clean energy stocks are rapidly replacing the old order as the choice investment for a transitioning world,” he added.The report analysed the stock market fortunes of fossil fuel companies and compared them with electric utilities, renewables and clean-technology companies, as well as the general equity market (the MSCI All Country World Index).It said an investor who bought into all fossil fuel and related equity issuances from 2012-2020 would have seen their investment underperform the ACWI by 52%.In the same period, renewables and clean technology outperformed the ACWI by almost 54% and gained $77 billion in value. Electric utilities outperformed the index by less than 1% but increased by $111 billion in value.Even though equity raised by clean-energy companies has grown rapidly, it is still far off what needs to be generated to finance a global energy transition.According to the scientists, clean-energy investments need to be $3 trillion to $5 trillion a year to keep global temperature rises to 1.5 degrees Celsius.Reporting by Nina Chestney, editing by Larry KingOur Standards:

By LONDON (Reuters) - The value of share offerings in fossil fuel companies dropped by almost 20% since 2012, while low-carbon companies gained ground in the shift towards clean energy, a report by think-tank Carbon Tracker showed on Wednesday.From 2012 to 2020, investors have bought almost $640 billion of equities issued by oil, gas and coal producers, fossil fuel- dependent utilities, pipelines and service companies.However, their investments have lost roughly $123 billion or nearly 20% in value, despite bullish equity markets during much of that period.That contrasts with activity in...

public

Nina Chestney

Top and breaking news, pictures and videos from Reuters. For more breaking business news, follow @ReutersBiz.

reuters.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Fossil fuel shares drop in value compared with clean energy, think tank says

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS