Diminishing Profits Signal the Beginning of the End of Oil

Oil is dying. Low oil prices are erasing profits and setting into motion a death spiral from which fossil fuels will not recover. Big Oil is cutting costs, and scaling back production, this results in smaller returns and diminished investor confidence. The addition of carbon pricing schemes and the elimination of subsidies will ultimately inflate prices and reduce demand.
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Oil is a Bad Investment

Iinvestors can no longer avoid the realization that their fossil fuel holdings are fraught with risks. While there are many factors at play, the 18 month slide and low price forecasts combine to make the point that investing in oil makes no economic sense.

In the short term China's slowing growth and the glut of oil are driving down the price. The situation will be exacerbated by the lifting of sanctions allowing Iran to sell its oil. High production and lower than expected demand mean that oil prices will continue to fall well into 2016.

Financial Losses Associated with Fossil Fuels

The losses associated with fossil fuels are staggering and it is not just oil producing states and companies that are feeling the heat. Pension funds going long on oil are getting killed as they hope that prices will rebound.

With oil prices around $50 per barrel, the IEA estimates that OPEC states have lost half a trillion dollars a year in revenues since the oil price fell from over $100 a barrel in 2011-2014 to current levels. The declining price of oil is also creating volatility in the stock market and significantly impacting the petro-economies of both Russia and Canada.

Sustainability Reporting Attracts Investors and Improves ROI (Video)

Here is a panel discussion designed to improve returns and attract investors. This discussion offers practical insights and helps commercial property owners with reputation management, employee engagement and efficiency. It also increases access to capital. This discussion is ideal for all who own or intend to buy or sell real estate. It is also for property managers, developers, and sustainability professionals.

Moderator: Heather Gadonniex, Director of Sustainable Building and Construction, PE International

Panelists

Helen Gurfel, Executive Director, ULI Greenprint
Gary Holtzer, Senior Managing Director, Hines
Kristen Sullivan, Partner, Deloitte
Dan Winters, Director for North America, Global Real Estate Sustainability Benchmark



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Event - Sustainable Investing Conference: Risk Value Impact

The 5th annual Sustainable Investing: Risk, Value, Impact conference will take place May 4th–6th at the Westin Michigan Avenue in Chicago. Participants will learn about new approaches, trends and policy developments while networking with industry leaders.

This event offers a unique opportunity to network with leaders of the sustainable, responsible and impact investing community, and to learn about new approaches, trends and policy developments in the field. The conference will attract representatives of investment management and advisory firms, research firms, financial planners and advisors, broker-dealers, community development institutions and asset owners such as pension funds and foundations, along with policymakers and corporate leaders.

Low Oil Prices Offer an Opportunity to Combat Climate Change

The plunge in the price of oil makes this an ideal time to deploy market disincentives that can cut emissions and combat climate change. We know that if we are to stave off the worst impacts of climate change we must substantially reduce our emissions. As the leading cause of climate change fossil fuels are the most obvious focal point.

All but the willfully ignorant understand that the economic costs of inaction far outweigh the costs of engagement. We have seen a number of studies which suggest the longer we wait the more it will cost.

Unimpressive Year for Canadian Cleantech Stocks: Top Performers

It has been an unimpressive year for cleantech stock in Canada. The S&P/TSX Renewable Energy and Clean Technology Index opened at 109.26 on January 3, 2014 and it closed at 110.47 on December 24, 2014. The index has just one solitary stock single stock with a triple digit gain. 

Green Stock Outlook Post Santa Claus Rally

While markets have been generous once again this Christmas, there are some dark clouds on the horizon for green investors.

Almost ever year Wall Street enjoys a "Santa Claus Rally" and this commonly includes green stock. This year, as markets fell in December, investors where wondering whether bearish sentiments were going to deny them a Christmas rally.

White Paper - Communications Strategy for Green Investment

A 2013 white paper released by the publisher of the Global Green Economy Index™ addresses communications as a strategy for advancing green investment and growth. Research and data associated with the Global Green Economy Index™ (GGEI) suggest that strategic communications and better information exchange between consumers, businesses and policymakers is often an overlooked strategy for advancing green growth and cleantech investment.

The white paper from Dual Citizen LLC supports this finding through six cases where strategic communications and better information campaigns have a role to play in supporting investment, cleantech entrepreneurship and policy development that advances green economic growth.

Falling oil Prices and a Global Climate Agreement

The decline in oil prices underscores the risk associated with fossil fuel investment. On December 1 as the COP20 talks began in Lima Peru, the UN's climate chief said that falling oil prices show the "high risk" of fossil fuel investments compared with renewable energies. This perspective was underscored by the December 14th Lima draft agreement that included mention of a world free from fossil fuel emissions by 2050. A final global climate agreement is scheduled to be signed in 2015 at COP21 in Paris. Prior to the Lima agreement there were agreements by the US and China and the European Union to cut greenhouse emissions from the burning of fossil fuels.

Video - Why Oil Prices Will Keep Falling

Oil prices are already low and they continue to decline as more downward pressure is expected. On Friday December 12th the International Energy Agency (IEA) forecast a decline in demand for 2015 and they further predicted that healthy non-OPEC supply gains were poised to aggravate a global oil glut. The current outlook for global oil demand for 2015 was cut from 230,000 barrels per day (bpd) to 0.9 million bpd.

Event - Investing in the UK Green Economy

Investing in the UK green economy: challenges and next steps for policy will take place on January 22, 2015, at Glaziers Hall, 9 Montague Close, in London UK. Hosted by Westminster Forum Projects (WFP), this CDP certified conference aims to provide a timely opportunity to examine the progress and next steps in the ongoing transition towards a green and low carbon UK economy - examining the remaining challenges in meeting 2020 objectives, implications for sustainable investment with ongoing negotiations for 2030 targets, and priorities for Government policy in the next Parliament.

Required Climate Investments and Impact on Growth According the IPCC Synthesis Report

Massive investment is required for climate change mitigation and adaptation. Here is a summary of needed investments and their impact on growth from the IPCC's recently released Synthesis Report.

Concern about the impact on growth is one of the primary reasons why some resist mitigation efforts. However, the Synthesis report says that the impact of climate investment on global economic growth would be negligible. Such investment would not impede growth which is expected to be between1.6 per cent to 3 percent per year until the dawn of the next century.

Event - Solar Energy Investment & Technology Forum 2014

This event will take place on November 14th 2014 in Bengalure. Solar Energy Investment & Technology will be hosted by UBM India, the organiser of Renewable Energy India Expo. The theme for this event is, "accelerating solar energy for growth of large and SME industries."

An Upside to Low Oil Prices?

While there is a clear downside to lower oil prices for renewable energy, there may also be a silver lining. Low oil prices are bad for renewable energy, but if they fall low enough they could decrease extraction of some of the dirtiest fossil fuels.

Declining oil prices are attributable to the fact that there is now more supply than demand. The low oil prices may be part of an effort by OPEC to leverage market forces that will slow extraction of tar sands oil in North America.

The Economic Costs of Canada's Oil Obsession

Canada's dependence on fossil fuels not only contributes to climate change it represents a serious threat to the economy. As oil prices plummet to a five year low, the Canadian economy is feeling the heat.  The declining price of hydrocarbons have driven down the value of the Canadian dollar and impacted stock prices on the TSE.

Canada's ruling Conservatives have bet on oil and this has disastrous implications for all Canadians. The fact that Canada is so closely tied to fossil fuels means that the nation's petro-currency is subject to profound market volatility.

Low Oil Prices will Slow Renewable Energy and Impede the Growth of the Green Economy

With oil prices at a 5-year low, renewable energy and the green economy are being hit with some serious headwinds. Low oil prices are not only detrimental to the growth of renewable energy it is also decreases demand for hybrid and electric cars as well as cleantech in general. High oil prices buoy interest in renewables, while low oil prices put downward pressure on the growth of the low carbon economy.

For more than a quarter century we have been exploring the ways in which oil prices are related to renewable energy. A 1989 World Bank study showed how renewable energy technologies are directly impacted by the price of oil. However this study added the caveat that the impact is muted in remote and rural applications (where fossil fuels are less available).

Infographic: Investors and Sustainability

Lucrative Investment Opportunities are Driving the Growth of Sustainability

Climate change mitigation and adaptation efforts are helping to fuel the growth of stock markets. Investors are increasingly seeing the wisdom of factoring sustainability into their investment equations. The S&P 500 recently surpassed the 2000 level and surveys indicate that companies on this index are mindful of climate change.

According to a 2012 report from the Center for Climate and Energy Solutions, almost 90 percent of S&P Global 100 Index companies identified climate change and extreme weather as current or future business risks. The growth of S&P mirrors the growth of the American stock market as a whole. One of the factors driving this growth is the increasing interest in sustainable investing.

White Paper - Sustainable Investing: Imperative and Opportunity

This whitepaper was produced by Morgan Stanley. As they explain on their Sustainable Investing website, they believe that private sector capital can play a key role in driving large-scale solutions to the most critical challenges to global prosperity and well-being.

Their Institute for Sustainable Investing seeks to help businesses, institutions and individuals direct capital to these challenges in scalable ways.