The End is Near for Dirty Energy: Fossil Fuels are Being Abandoned by Investors, Insurers and Banks

“I’m done with fossil fuels. They’re done. They’re just done. We’re starting to see divestment all over the world.” - CNBC’s Jim Cramer

The fact that investors, insurance companies and banks are abandoning the fossil fuel industry is a clear sign that coal, oil and gas are in the final stage of their energy dominance. Those who refuse to come to terms with this fundamental reality will by punished financially and in the court of public opinion.

Video - Fossil Free Investing (Shelton Alpha Fund)

Shelton Capital Management offers sustainability focused investments in what is known as the Green Alpha Fund. They describe their The Fund is designed for those interested in exploring fossil free investing. The focus in on "innovation, people, the planet, the future." The Shelton promotional video speaks about, preparing for "a new world" and the need to invest in companies that "maximize resources [and] minimize global impact'" They invest in sustainability leaders that are helping to build the green economy.

See The Economic Case for Divestment.

Video - Massive Apple and First Solar Partnership

Corporate behemoth Apple is making good on its embrace of sustainability with a new $848 million 3000 acre solar project powered by panels from First Solar. This will triple Apple's supply of solar energy. This electricity will power its offices in California, along with 52 retail stores and a data center. This is a good deal for Apple as there are no upfront investment costs and they will get electricity cheaper than they would have through the existing grid. However as Apple CEO Tim Cook explained this is about more than just ROI, renewable energy projects are consistent with Apple's values. As Cook has said repeatedly Apple's new corporate ethos is about "leaving the world a better world than we found it." Under Cook Apple is aligning the company with the values of its customers including environmental sustainability.

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Video - The Rockefeller Fund Divests from Fossil Fuels

The Rockefeller Fund may have earned its fortunes in fossil fuels, but like so many others they are taking a leadership role in their decision to divest from oil and gas last September. In this video Carl Larry, president at Oil Outlook & Opinions, talks with Olivia Sterns about the heirs of John D. Rockefeller divesting their vast oil fortune from the family’s $860 million philanthropic organization and looks at which investors are getting in as the Rockefellers and others exit big oil.

Video - Divestment is both Good and Dangerous (Tim DeChristopher)

"Its time to tell those at the top of the our power structure we know your scared of this and you should be because were coming for your power were coming for your privilege."  These are the words of Tim DeChristopher​ who spoke at the Massachusetts State House on February 13th, 2015 as part of 350 Massachusetts​' #DivestWeek & Global Divestment Day (February 13 & 14). Tim went on to say, "divestment is in some ways a dangerous idea -- and that's a good thing."

Video - Message For Global Divestment Day from Reinhard Bütikofer

Here is a February 13 message For Global Divestment Day from Reinhard Bütikofer, member of the European Parliament (Greens/EFA) and Co-Chair of the European Green Party (EGP). Bütikofer is a powerful divestment advocate who has explained why we need to divest and the link between fossil fuels and climate change in an insightful infographic.

Video - The Logic and Benefits of Divesting from Fossil Fuels

We must divest from fossil fuels because they are the primary contributor to climate change. Divesting is the necessary thing to do to address climate change. However the fossil fuel lobby is very powerful and this makes legislative changes difficult. Divesting from fossil fuels and reinvesting in clean energy is a smart financial move. Sustainable companies and renewable energy is growing while fossil fuels are declining. Divesting is also a political statement that seeks to shine light on the trend away from fossil fuels.

Why Faith Communities are Divesting from Fossil Fuels

The fossil fuel divestment movement is growing worldwide and faith communities are leading the charge. Divestment sends an important symbolic message about our commitment to preserving God's creation. Although faith-based activism will not eradicate fossil fuels, it brings moral force to the issue and the kind of leadership that can help to win the hearts and minds of people all around the world.

Faith communities have been singled out to lead the divestment movement. Last May United Nations climate head Christiana Figueres called on religious leaders to take a strong stance on climate change, calling it "one of the great humanitarian issues of our time."

Time to Reduce the Subsidy Gap Between Fossil Fuels and Renewable Energy

Disproportionate subsidies for fossil fuel aid an industry that is the primary driver of climate change and hinder the growth of clean energy solutions.

Now is the time for a reduction in fossil fuels subsidies. The markets have adjusted to oil at a much higher price than they are right now, this means that removing fossil fuel subsidies could be done with less shock. Removing such subsidies would save the government money and drive up the price which would encourage efficiency and diminish demand.

Subsidies are useful to help new industries get off the ground. However, fossil fuels are a mature industry while renewable energy is still very young.

Infographic - Now is the Time to Divest from Fossil Fuels

On Global Divestment Day (February 13 and 14) people around the world are coming together to say no to fossil fuels. As the primary driver of climate change, a fast growing global movement is challenging the social license of the dirty energy industry's right to destroy our planet. Science tells us that we must leave 80 percent of fossil fuels in the ground if we are to stave off the worst impacts of climate change. However, the fossil fuel industry continues to expand while at the same time using their tremendous financial clout to buy politicians and obstruct pro-social change.  In the face of their intransigence millions of people around the world acting to divest and encourage others to do the same.  

Today is the Day to Divest from Fossil Fuels

Today is the start of the largest fossil fuel divestment movement in history. Thousands of actions on six continents will show we are moving away from dirty energy towards a cleaner future powered by renewables. People and organizations all around the world are coming together to challenge the social license of the fossil fuel industry's right to operate. The fossil fuel industry is the primary contributor to climate change while at the same time they finance powerful lobby groups and political parties that obstruct responsible climate action.

The Price of Solar Charts and Graphs

The Upside to Low Oil Prices

While much has been said about the downside to low oil prices there is also an upside. Low oil prices introduce a disincentive to the financial equation to invest in fossil fuel exploration and development. This is particularly important for the environment as some of the most expensive fossil fuels come from the most ecologically sensitive areas.

Perhaps the biggest single benefit from low oil prices will be the downward pressure it exerts on tar sands expansion. This is not only the most carbon intensive source of fossil fuels it is also four times more expensive than traditional oil extraction. We are currently well below the break-even price of around $75 per barrel. With a break-even point of around $60 per barrel US shale drilling projects are also going to suffer.

Natural Gas Will Not Slow Climate Change and it Will Impede the Growth of Renewables

While many people look to natural gas as a climate savior it is neither clean nor is it cheap. Much of the easily accessible gas has already been extracted, remaining gas is harder to extract and more expensive. To access this gas requires the infamous practice of hydraulic fracturing or "fracking" as it is colloquially known. This comes with a large spectrum of problems from contaminated ground water to earthquakes.

While it may have half of the carbon load of coal, it also leaks vast quantities of methane, another potent greenhouse gas. Further, the ongoing expansion of natural gas puts downward pressure on the growth of truly clean and renewable sources of energy. An October 2014 study titled Climate Change: A Crack in the Natural Gas Bridge shows that expanding natural gas would not slow the growth of global greenhouse gas emissions worldwide over the long term. Inexpensive natural gas would also accelerate economic growth and expand overall energy use.

Renewable's Predictable Pricing Trumps Volatile Oil

Renewable energy offers the kind of pricing predictability that is in everyone’s interest. While the price of oil has fluctuated, generally increasing over time, the price of renewable energy has shown fairly steady and consistent declines.

A new report released by the International Renewable Energy Agency (IRENA) indicates the costs of renewables will fall by almost 40 percent in the next two years, and solar energy should reach grid parity in 80 percent of its market by 2017.

Oil's Price Volatility is Bad for the Economy and the Environment

No matter how you slice it, oil's price volatility is bad for business and bad for the economy. At the start of this decade headlines were commenting about the high cost of oil now they are awash with remarks about price declines.

Unpredictable oil prices hurt everyone. The problem of oil's price volatility was made apparent during the OPEC oil embargo of 1974. Since then we have seen a number of radical fluctuations including a sudden price spike in the summer of 2008 when a barrel of crude hit more than $130 only to fall to $40 per barrel a few months later.

Cheap Oil is no Windfall

The rapid decline in the price of oil is fraught with misconceptions. A year and a half ago a barrel of crude that sold for more than $110 is now just over $50. The combination of OPEC (Saudi) oversupply, less European demand and American natural gas from fracking have driven the price of oil down.

The biggest fallacy about cheap oil is that this will be a boon for the American economy. Most Americans work in the service sector where energy constitutes small percentage of their annual budgets (less than 10 percent). So the economic benefits of cheap oil have been overstated.

Solar is Destined to Defeat Fossil Fuels

While many are preoccupied with declining oil prices, solar power continues its steady trajectory towards grid parity. The long-term cost of utility-scale has fallen 20 percent in the past year and 78 percent in the last five years. While it was hard for solar to compete with subsidized natural gas the outlook for solar is very bright.

Unlike fossil fuels which are a commodity that cannot improve, solar is a technology that keeps on getting more efficient. Solar keeps getting cheaper while the price of extracting fossil fuels continues to increase.

Fossil Fuel Divestment: Top 100 Companies

Here is a comprehensive list of fossil fuel companies from the Carbon Underground provided by Fossil Fuel Indexes and ranked in terms of divestment priority.

Renewable Energy Case Studies: Burlington Vermont and Argentina

The massive growth of renewable energies is hard to refute. Strong growth forecasts come from the combination of current day models of clean energy use and extraordinary opportunities that remain to be exploited.

Here are two renewable energy case studies from the municipal level (Burlington Vermont) to the national level (Argentina). The first illustrates a current example of functioning renewable energy systems and the second points to the potential for growth.