The Carbon Tracker Initiative is aiming to improve the transparency of the carbon embedded in equity markets. This will be done by identifying the scale of unburnable carbon currently listed on stock exchanges around the world in order to demonstrate the systemic risk to markets. This forms around 5 central workstreams:
- Assessing systemic climate change risk
- Challenging valuation assumptions and identifying stranded assets
- Accounting for impaired/stranded/sub-prime assets
- Investigating the Capital Raising process
- Exploring the contradiction between climate policy and markets
Please contact us if you are interested in finding out more or working with us on these issues.
Carbon Tracker and the Grantham Institute launch Unburnable Carbon 2013
Our new research re-examines the scale of global unburnable carbon since the seminal 2011 report, and assesses the degree to which companies are inflating the carbon bubble even further
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Carbon Tracker and Standard & Poors launch report
Carbon Tracker and Standard & Poors have been working together on the implications of carbon constraints for credit ratings of the oil and gas sector.
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Unburnable carbon: Budgeting carbon in South Africa
Our new research on coal reserves earmarked for the South African market provides a stark warning to the Government Employees Pension Fund and other investors of the carbon bubble risk to their investments.
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To divest or not to divest
As the 350.org tour takes the new maths of climate change across the US, we take a look at the options open to investors, for whom divestment is not on the table.
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Rolling Stone: Global warming’s terrifying new math
Three simple numbers that add up to global catastrophe - and that make clear who the real enemy is by Bill Mckibben Read more in Rolling Stone Magazine (July 2012)
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Carbon Bubble?
Are the world’s financial markets carrying a carbon bubble? Read this new analysis by Carbon Tracker.
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Some IPOs should be too hot to handle
The planned listing of Coal India is the latest example of how capital markets are failing to price – or even consider – climate change risk.
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Aviva Investors recognise all reserves cannot be burnt
"Valuations of the oil and gas sector still assume that they will be able to take all proven and probable reserves out of the ground and burn them. "Based on credible data we cannot be allowed to do that,"
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Jeremy Leggett reviews Coal India IPO
Jeremy Leggett blogs about the recent Coal India IPO. Company's prospectus did not mention climate change once in 510 pages of exhortation to invest...
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Leaving fossil fuels in the ground
“at least one-half of fossil fuel assets will have to be left in the ground,”.... “We’re still pricing [companies in the extractives sector] as if they are all going to be exploited.”
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An Era of Capital Misallocation
“Unfettered markets are not meant to solve social problems” so there is a need for better public policies, including pricing and regulatory measures, to change the perverse market incentives that drive this capital misallocation and ignore social and environmental externalities."
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Al Gore reiterates $7trillion of sub-prime carbon assets on markets
"We now have around 7 trillion subprime carbon assets in the global economy and their value, like the subprime mortgages, is based on an assumption that is highly questionable." Al Gore
Lord Stern on Carbon Tracker on FT.com
As the negotiations at the UN climate change summit in Durban reach the critical stage, we must not overlook a fundamental contradiction between the way global fossil fuel reserves are evaluated and long-term policy goals. By ignoring this contradiction, companies and markets, as well as governments, are undermining management of the huge risks that rising levels of greenhouse gases pose to their survival.
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London the Coal Capital
New analysis from Carbon Tracker in partnership with WWF-UK shows how the growing number of coal mining companies listing in London exposes the financial market to a significant systemic risk. Investors tracking the FTSE AllShare Index are facing increasing efforts across the world to regulate the carbon dioxide (CO2) emissions from coal-fired power generation, most recently in Australia. Carbon Tracker estimates that coal reserves equivalent to 44.56 GtCO2 are held by companies listed on the London Stock Exchange.
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