The report says the world is “witnessing the decline and fall of the fossil fuel system” owing to the quicker-than-expected growth of clean energy alternatives coupled with the collapse in demand for fossil fuels amid the pandemic.
Value of reserves could fall by two-thirds as Covid-19 hastens peak in demand, study shows
The looming fossil fuel crash could pose a significant threat to global financial stability, say experts. Photograph: Matthew Brown/AP
The coronavirus outbreak could trigger a $25tn (£20tn) collapse in the fossil fuel industry by accelerating a terminal decline for the world’s most polluting companies.
A study has found that the value of the world’s fossil fuel reserves could fall by two-thirds, sooner than the industry expects, because the Covid-19 crisis has hastened the peak for oil, gas and coal demand.
The looming fossil fuel collapse could pose “a significant threat to global financial stability” by wiping out the market value of fossil fuel companies, according to financial thinktank Carbon Tracker.
The report predicts a 2% decline in demand for fossil fuels every year could cause the future profits of oil, gas and coal companies…
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