The oil and gas industry faces losses of more than $3 trillion (£2.4 trillion) because of net zero, the International Energy Agency (IEA) has warned. It said companies will become increasingly risky investments, potentially losing half their overall valuation, as the world moves to restrict greenhouse gas emissions.
It has accused the global oil and gas industry of failing to understand or respond to the deepening global climate crisis and warned that the result could be a catastrophic loss of value for investors unless companies change course.
Pension and investment funds that rely on oil and gas companies for large chunks of their investment returns could face disastrous declines over the next two decades as a result, the IEA warned.
The Paris-based organisation said the value of the private oil and gas industry, which stands at $6 trillion, will fall by a quarter if all current climate goals set by governments around the world are met.
If targets are toughened up to put the world on course to limit global warming to 1.5C, as leaders committed to do under the Paris Climate Agreement in 2015, then as much as 60pc of the industry’s worth could be wiped out, the IEA said. This would mean companies collectively lose more than $3 trillion of value.
The agency said in a report published on Thursday: “In transitions to net zero, oil and gas is set to become a less profitable and riskier business over time.”
For the full story visit Net zero risks wiping $3 trillion from oil and gas companies (telegraph.co.uk)
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