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Environment

Oil exporters must shift capital stock to renewables

Håvard Halland's picture
Oil pumps, in southern Russia. Photo: Gennadiy Kolodkin / World Bank

As the Financial Times pointed out recently, oil companies such as Exxon Mobil and Shell would, under measures considered for the global climate pact to be sealed in Paris next year, cease to exist in their current forms in 35 years. The proposal of phasing out global carbon dioxide emissions as early as 2050 was not resolved in the UN climate talks in Lima last December.

However, the adoption of even a watered-down version in Paris or in later rounds of climate negotiations would mean that the amount of oil and gas produced by these companies, and the quantity of coal mined by enterprises such as Rio Tinto, would need to be greatly reduced by mid-century. Such long-term concerns might over the next years trump current worries about an oil price slump that could be on the wane as soon as marginal projects and producers are shaken out from the bottom of the market.

A missing "G" in ESG? - an emerging case for integrated environmental, social and governance analysis

Michael Jarvis's picture

Governance issues are prominent on the development agenda - as exemplified by the recent G8 focus on transparency or in discussions of the post 2015 agenda. However, at least among most donors, the governance aspects are dealt with separately from discussions of social or environmental (or even economic) aspects. Is this a useful distinction? Or are we missing a trick from the financial and private sectors in not developing integrated environmental, social and governance (ESG) approaches?