The march continues to scare institutional investors away from fossil fuel-based portfolios.
“To narrow the gaping jaws between policy ambition for emission reduction and the carbon budget for a 2C world, governments will begin serious negotiations this year to deliver a global climate agreement in 2015,” Mr Robins continues. This implies that high-carbon assets will face increasing regulatory constraints and a growing risk of becoming stranded assets. Yet the average pension fund portfolio has 55 per cent of its assets invested in high-carbon sectors or sectors greatly exposed to climate change, Mr Poulter points out.
Exxon-Mobil will be out of business in no time.