Paris Agreement Triggers Divestment from Coal - Study
The fact that countries are now implementing the Paris Climate Change Agreement will on balance lead to more divestment from coal and other fossil fuels than it will spark a rush to burn up the world’s remaining fossil fuel reserves, according to a new study.
The study published in Nature finds that divestment beats the ‘green paradox’ – the phenomenon of an increase in carbon emissions, at least temporarily, in response to climate policies aimed at reducing emissions – if substantial carbon pricing is announced.
“We find that ten years before carbon pricing policies are actually introduced, investors start pulling their money out of the coal power sector,” said lead-author Nico Bauer from the Potsdam Institute for Climate Impact Research (PIK).
Duke Energy