Are fossil fuels the sub-prime assets of the future? The debate about the long term risk of investments in fossil fuel businesses is moving from a fringe moral debate initiated by the CarbonTracker team in 2011 into a mainstream investment risk debate. Recently, powerful interventions from Bank of England Governor Mark Carney, Energy Secretary Ed Davey and even former BP CEO John Browne have highlighted the issue. Climate change negotiations for Paris 2015 could be pivotal.
The UK is in a strong position with respect to the potential for permanent sequestration of CO2 offshore in rock formations deep below the North Sea. This is because of two factors. Firstly the correct type of rock formations exist in places below the North Sea with the porosity to provide capacity for the CO2, permeability to allow its injection, and sealing formations to contain the CO2.
The clear link between rising global temperatures and the emissions from the combustion of fossil fuels is established. Limiting the warming effect means limiting Carbon Dioxide (CO2) emissions from the combustion of fossil fuels.