Al Gore: Divest Now from ‘Sub-Prime’ Coal and Oil Companies Before ‘Carbon Bubble’ Bursts

As Gore puts it:

There are $7 trillion worth carbon assets on the books of multinational energy companies…. The valuation of those companies and their assets is now based on the assumption that all of those carbon assets are going to be sold and burned. And they are not.  The global scientific community has just reaffirmed that no more than one-third can ever possibly be burned without destroying the future.

He likened the “absurd overvaluation” of the stock prices of fossil fuel companies to that of subprime mortgages before the economic crash.  He added:

This carbon bubble is going to burst…. People can make short-term profits by playing the psychology of the markets.  But if you’re a long-term investor and you do not take into account the stranded-assets potential for carbon-based equities and debt instruments, in my view you’re making a mistake.

Al Gore: Divest Now from ‘Sub-Prime’ Coal and Oil Companies Before ‘Carbon Bubble’ Bursts