Full Title: Fossil fuel divestment: a $5 trillion challenge
Author(s): N/A
Publisher(s): Bloomberg New Energy Finance
Publication Date: August 1, 2014
Full Text: Download Resource
Description (excerpt):
Fossil Free, a project of the non-profit organization 350.org led by the author and activist Bill McKibben, is the movement’s most vocal presence. McKibben’s activism and the organisation have spawned numerous groups targeting specific investment portfolios, particularly university endowments. At first, divested portfolios were quite small (one university committing to divest had an endowment of $960,000 at the time). The movement has momentum however, with Stanford University recently announcing that it will divest coal stocks from its $18.7bn endowment, and the World Council of Churches ring-fencing fossil fuels from its portfolio guidance. At the moment, however, divestment calls are not enough to move a needle calibrated in the trillions of dollars. But if divestment were to achieve trillion-dollar scale, what would it look like?
This paper is a thought experiment on that question. It addresses potential re-investment strategies for ex-fossil fuel dollars. It analyses clean energy as an asset class and destination for capital. It also examines other multi-trillion dollar sectors as potential destinations for reinvestment.