Carbon Bubble Is Bursting as Divestment Takes Hold
February 22, 2017
Grantee News From DivestInvest Philanthropy:
By Clara Vondrich
Where goes investment, there goes the climate. This is the fact today as we stand on the brink of locking in irreversible climate change with our fossil-heavy economy. Like never before, institutional investors have the power to make or break the future.
The International Energy Agency published a bombshell report in 2011 noting that our climate fate would be sealed by 2017 without a rapid departure from business as usual. By that year, dangerous warming of more than 2 degrees Celsius would be locked in by a global system of long-lived pipelines, refineries, power plants and transportation systems. Since then, the “safe” level of warming has been tightened further to 1.5 degrees, with evidence that 2 degrees is a death warrant for many island nations.
It’s now 2017 and the pace of the clean energy transition still lags behind the physics. Some say 2 degrees, much less 1.5 degrees, is a pipe dream. The upshot is that every investment we make into our energy system matters, bringing us either closer to or further away from climate hell. By this measure, the policies of China—closing its coal plants and committing hundreds of billions of dollars to renewable energy—are prudent, while the rhetoric and policies of the Trump administration—promising to rebuild America’s coal industry and firing off executive orders to fast track the Keystone XL and Dakota Access pipelines—are retrograde. One creates an enabling environment for progress and thriving, the other is disabling and destabilizing. More>
Clara Vondrich is the director of DivestInvest Philanthropy.