Renewable Energy May Cause $6 Trillion Fossil-Fuel Divestment

J P Morgan mentions that contrary investment in the renewable energy would pose a high risk on shareholder returns for the oil giants.

renewable energy

With an increased pressure from governments and consumers to use renewable energy, oil industry is eyeing investing in alternative sources of energy.

Leading market analyst, J P Morgan suggests that the global push to switch to clean energy alternatives may cause a whopping disinvestment of USD 6 trillion in the fossil fuels industry with around 1,000 fossil fuel institutional investors already pledged to divest.

Further, the analyst mentions that contrary investment in the renewable energy would pose a high risk on shareholder returns for the oil giants.

Besides the loss of running capital in fossil fuels industry, experts testify an “investment quicker than expected” is required to reduce the carbon footprint of the world.

The report also mentions that the change of path to renewable energy is not happening in the distant future. The global rhetoric to adopt clean energy manifests that it is the right time to invest.

Moreover, expanding beyond fossil fuels is therefore unavoidable, but requires, and will continue to require, greater spending alongside investing in traditional oil and gas projects.

Switching to cleaner energies is now inevitable as the worldwide protests supporting the idea to contain global warming can’t be overlooked.

Source: CNBC

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