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You say IF financing was reduced, but it is already happening. And you are missing the underlying problem of stranded assets. Fossil fuel assets are priced on t
by woodandsteel 7y ago
You say IF financing was reduced, but it is already happening. And you are missing the underlying problem of stranded assets. Fossil fuel assets are priced on the assumption that all reserves will be extracted and sold, but it has become clear this is not going to happen. As a consequence the financiers are taking their money elsewhere.
In fact even the fossil fuel asset owners are starting to do this. For instance the Saudi Arabia plan to do an IPO of Aramco is because they know they need to rapidly diversify their economy away from oil. The idea the oil industry is going to remain financially healthy while all this is going on is quite unrealistic.