From: The Guardian
by Damian Carrington
by Damian Carrington
Capital investment will never see a return if world's governments fulfil climate change pledge, says Carbon Tracker group
A tar sands plant
under construction near Fort McMurray, Alberta, Canada. Alberta has been
singled out as 'the region with the highest risk of wasted capital.'
Photograph: Ashley Cooper/Corbis
Over $1tn is being gambled on high-cost oil projects that will never see a return if the world's governments fulfil their pledge to tackle climate change, according to a new report.
The Carbon Tracker Initiative (CTI) research found that $1.1tn of capital expenditure is expected in the next decade in expensive oil sands, deepwater and Arctic projects but that this investment will be lost if policymakers agree to slash carbon emissions.
"This
risk analysis shows that many oil companies are betting on a high
demand and price scenario," said James Leaton, research director at CTI
and a former PwC consultant. "Investors need to [challenge oil company
strategies] to ensure capital is not being wasted." Previous CTI
research has shown that about two-thirds of existing fossil fuel reserves cannot be burned if global warming is to be limited to 2C, as agreed by the world's nations.
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