As global concerns over climate change gain pace, a growing movement to cut off institutional funding for fossil fuel projects is creating new headwinds for oil and gas producers. More investors, shareholder activists and environmental groups than ever are pushing for investment funds to ditch support for oil companies, and the headline figures are alarming. More than 1,000 institutions with managed investments worth over $8 trillion have now committed to divest from some or all fossil fuels, according to estimates by US-based environmental group 350.org. On closer inspection, only a fraction of the total managed funds value is invested in fossil fuels and many funds have only sidelined investment in coal projects, not oil and gas —so far, at least. Nevertheless, the direction of travel is clear and the fossil fuel divestment movement is gaining traction. The list of institutions that have started to cut their ties with fossil fuels is growing. Norway’s $1 trillion sovereign wealth fund is dropping most of its upstream oil holdings while Ireland became the first nation to divest its public funds from fossil fuels last year. The World Bank has committed to stopping funding new oil and gas developments from this year. The moves… continue reading
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Source: CTRM Center