Energy Companies Risk $2.2 Trillion as Climate Goals Cut Demand
- Oil use will peak in 2020, Carbon Tracker Initiative says
- U.S. faces biggest risk from stranded energy projects
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Oil, natural gas and coal producers are risking $2.2 trillion by investing in projects for which there will be no demand if the world meets a United Nations target of limiting the rise in temperature to less than 2 degrees Celsius, a non-profit think tank said.
No new coal mines are needed, oil demand will peak around 2020 and growth in gas will disappoint industry expectations, Carbon Tracker Initiative said Wednesday in a report. The U.S. has the greatest exposure with $412 billion of projects at risk up to 2025, followed by Canada with $220 billion, China $179 billion, Russia $147 billion and Australia $103 billion, according to the think tank.