In the fight against the climate crisis, the burning of oil, coal and gas must be reduced rapidly and significantly. Yet many investors continue to invest their money in fossil fuel industries.
Climate activists are denouncing the fact that large investors continue to pump billions into the oil, gas and coal industries. This is hindering the timely phase-out of fossil fuels in order to curb global warming, said Katrin Ganswindt of the environmental organization Urgewald, which published the financial research “Investing in Climate Chaos” with 13 partner organizations. It is time to finally “shift towards the energy transition.”
This year’s edition looks at investments by more than 7,500 institutional investors worldwide. The financial data was collected in May 2024 and shows that these investors hold bonds and shares worth 4.3 trillion US dollars (3.97 trillion euros) in companies active in fossil fuel industries. Almost two-thirds of investments are held by US companies, according to the survey.
According to climate researchers, humanity is heading towards a world that is almost three degrees hotter. The main reason is the burning of coal, oil and gas, which releases greenhouse gases. After decades of discussion, the global community agreed for the first time at the UN Climate Change Conference in Dubai in December to move away from coal, oil and gas. Environmentalists, however, denounce many loopholes.
Source: Stern
