Finance “Gets” It, Takes Action
128 investment groups with $43 TRILLION under management have committed to net-zero-by-2050 / 1.5oC max warming. Harvard divests from fossil fuels companies. Janet Yellen may regulate lending to fossil fuel companies. “ESG” disclosures may be mandated by the SEC.
Investors are not fools. They see the coming reality that fossil fuel “assets” will become “stranded” as new technologies or government policy or both will operate to “strand” those assets. The broader business community sees not only opportunity to lead the transition but the benefits to reducing the risk and damage of climate change.
These are the same incentives and realities that inform the economics of the carbon-fee-and-dividend policy.