Fossil Fuels Are A Terrible Investment, And They're Only Going To Get Worse
Dirty energy stocks are tumbling.
The market is encouraging pension funds and institutions to jettison fossil fuels from their portfolios, waving a clear warning flag to investors about the financial future of oil and coal companies.
Fossil fuel stocks are performing poorly compared to the market as a whole -- and perhaps most importantly, compared to renewable energy stocks, said Michael Liebreich, chairman of Bloomberg New Energy Finance, at a summit on climate risk put on by the nonprofit sustainability advocacy group Ceres.
Referring to investors who won't divest and continue to own fossil fuel stocks, Liebreich pointedly said that the market was "divesting through value destruction" -- in other words, cutting their holdings in traditional, polluting energy companies by slashing their value.
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