In the global coal and oil companies, the warnings take effect: International commodity companies are going on a global shopping spree to "green-wash" their portfolios, which is a frequent accusation by press and public. But: If they want to survive economically in a decarbonizing world, they must free their value chain from CO2 emissions and leave the carbon bubble.
However, it is doubtful that this really happens with full commitment: In 2018, for example, multinational oil companies invested just one percent of their total budget in renewable technologies. Although these are by no means peanuts in view of the three-digit billion Euro sales volume on the global oil market, they are only a small part of a still mainly CO2-intensive business.
Much has happened since 2013, when the Carbon Tracker Initiative first introduced the theory of the carbon bubble:. Back then, for example, the share of renewable energies in Germany’s power production was at 27 percent - according to Fraunhofer ISE projections, it could be over 47 percent in 2019. Business models in the field of renewable energies have developed, matured and are ready for the market and can ensure a stable power supply.
Nevertheless, even in 2019, the big divestment, the global withdrawal from company shares and investments based on fossil fuels, has by no means yet taken place. In April 2019, the New York Times quoted the economist Jeremy Grantham, one of the first and most accurate prophets of the 2008 financial crisis, in drastic words: We would be faced with the "first truly global financial bubble" - and not only companies that rely on fossil fuels, but the entire global economy would be affected. Most investors, however, continue to act with a shortsighted perspective, consistent with John Maynard Keynes' thesis that it is better for ones reputation to fail conventionally than to succeed unconventionally. According to Grantham, he knows of no prospects for the future that are as well documented and more probable then climate change - and yet hardly anyone acts accordingly.
Disclaimer: Next Kraftwerke does not take any responsibility for the completeness, accuracy and actuality of the information provided. This article is for information purposes only and does not replace individual legal advice.
Market Access & Trading Services
Next Kraftwerke is a leading European power trader and provides access to day-ahead and intraday markets as well as long-term and OTC trading on various power exchanges in Europe. In addition to our trading services, which also include brp and portfolio management, we offer a trading platform for an easy and cost-effective market access.