The threat of catastrophic climate change and its effects -- flooding, drought and sea level rises -- make continued in fossil fuel stocks risky at best. Current fossil fuel reserves may be estimated to be worth as much as $28 trillion dollars, but Forbes contributor Logan Yonavjak warns of a carbon bubble."Although they have been lucrative, fossil fuels are becoming increasingly risky investments, and the stakes have become too high to maintain a stable climate," Yonavjak writes.
Specifically, Yonavjak explains that a possible carbon tax could raise the price of carbon to an average of more than a $100 per metric ton. This market expense, coupled with the increased costs associated with climate change, could make fossil fuels stocks toxic.
In light of the evidence of the crippling impacts and expense climate change is expected to cause if fossil fuels continue to be burned at current rates, divestment has become a key word for environmentalists and savvy economists alike.
The last time I was savvy, was that time I had that unexplained itch in unmentionable places...oh wait, did I say that out loud?