4 ms·
Because the trouble I'm suggesting OP could do something about isn't precisely that there are no investors in alternative fuels. It's that too much of the money
by suoduandao2 4y ago
Because the trouble I'm suggesting OP could do something about isn't precisely that there are no investors in alternative fuels. It's that too much of the money ever put into fossil fuels gets reinvested in fossil fuels, which makes said lobbying much more desperate than it could be were the money part of a mixed portfolio that started out with mostly fossil assets but reinvests outside it. It also makes it necessary for fossil companies to drop the price precipitously when there is a downturn, which shakes out a lot of promising alternate startups. If the backers had the capacity to wait out a fossil fuel downturn, those resources could be sold later at top dollar, but that would require a diversified approach.
It's obviously not as simple as what I'm imagining (not a finance guy here, just an enthusiastic private investor) but what I'm sure needs to happen at the macro level is that the returns from capital currently invested in fossil fuels need to go to nonfossil investments in a gradual, continuous manner so that costs can be averaged out over a number of business cycles. If that happens, we'll probably be okay when the fuels do run out. If capital sources for clean vs fossil are segregated and antagonistic, fossil will simply win.