Analysis: hard reality fossil

Analyse: dure réalité fossile

Photo: Alexander Shields The Duty
The recovery of after-COVID involves factors related to corporate social responsibility and the environment for their role as accelerator.

It is in the nature of crises to generate the initial comments referring to the before and the after-shock, and then dissolve in the return to the old habits. Thus, in the eyes of the think tank Carbon Tracker, the COVID-19 would accelerate the “decline” final of fossil fuels. The future will tell, especially as a comeback of coal is feared. But one thing is certain. The concept of active failed has become an inescapable reality.

In its report published on Thursday, Carbon Tracker bases its analysis on the achievement of a spike in demand for the industry of the oil and coal that is coming speed up the pandemic, as a prelude to an inexorable decline of fossil fuels. This decline is all the more inevitable that the economic recovery of post-COVID involves factors related to corporate social responsibility and the environment for their role accelerator, catching Monique Leroux, chairman of the Council on the industrial strategy, the task of producing a diagnosis of the impact of the pandemic.

Is the registry an imperative felt by many States to engage more fully in the energy transition, or even focus on the energy sovereignty, an objective the lowering of the costs of renewable energies at competitive rates makes it possible. In 2019, the renewable electricity accounted for 72 % of the growth in the power sector, according to the international Agency for renewable energy. Last year, 56 % of the new industrial production of renewable energy was less than the cost of the electricity that would have produced any fossil fuel, including the cheapest of them all : coal, could be read in The Duty.

The concept of active failed is therefore more embodied than ever. Carbon Tracker advance on this field. The companies involved in fossil fuels today account for a quarter of the total value of the markets. And “if the request is declined 2 % per year […] their future profits would be amputated of two-thirds,” according to the calculation of Carbon Tracker. The reflection group to prevent a crash imminent investors and lenders who continue to stay on the path of fossil fuels. “It is time to prepare an orderly liquidation of the assets, fossil and manage the impact on the global economy, rather than trying to sustain what is not sustainable “, is the report.

This call is especially acute in 2019, there is nothing in the market value of the companies most exposed to the calamities of the human, financial and economic issues caused by climate change, only reflects the greater danger which weighs on them, lamented on Friday the international monetary Fund.

In the banking sector, the conclusions of a survey published in may by the Network of central banks and supervisors for the greening of the financial system were that 61 percent of banks said they do not evaluate the risks of climate change or environmental in their financing activities.

A reading that was in January of BlackRock, which boasts 7000 billion US $of assets under management. “Sooner than expected, there will be a sizable reallocation of capital […] climate change has become a determining factor in the long-term prospects of the companies […], a risk that the markets have, until now, been rather slow to reflect. “

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