Dec 3, 2019

Climate change expected to drive private equity away from fossil fuels

Illustration: Aïda Amer/Axios

Concerns over climate change will reduce the amount of capital available for private equity investments in fossil fuels, according to a recent survey by Coller Capital.

By the numbers: 38% of responding limited partners say they will reduce their commitments to oil and gas funds over the next five years.

  • The numbers are much higher among European and Asia-Pacific LPs than for those in North America, where only 30% say climate change will cause any change to their PE investment strategy and just 16% say it will affect their own operating procedures.

Many of the respondents are planning to replace fossil fuel dollars with investments in renewable energy. If that comes to pass, it could significantly increase private equity's influence in the sector, where overall global investment is down from its 2016 peak.

Go deeper: Making sense of an oil giant's net-zero carbon pledge

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Why clean energy isn’t enough to tackle climate change

Illustration: Aïda Amer/Axios

Forget renewable energy for a moment. To really fight climate change, the world needs to focus far more on cutting its use of oil, natural gas and coal.

The big picture: Like adding salad to your pasta doesn’t help you lose weight, adding cleaner energy to a world run on fossil fuels won’t cut greenhouse gas emissions. Yet that’s what we’re doing now.

Go deeperArrowDec 2, 2019

America blows past the world in oil and natural gas

Data: Oil Change International and the Global Gas and Oil Network, with data from Rystad Energy; Chart: Danielle Alberti/Axios

America is poised to produce far more oil and natural gas over the next five years than any other country in the world, according to a new report.

Why it matters: It shows how America, already the world’s largest oil and gas producer, is poised to cement that position, with pivotal implications for geopolitics and climate change.

Go deeperArrowDec 10, 2019

Why climate change is a defining issue for 2020

Photo Illustration: Sarah Grillo/Axios. Photo by J. Countess/Getty Images

Climate change is playing a larger — and more polarizing — role than ever before in a presidential election.

Why it matters: In the past, the topic barely registered with voters and candidates were less polarized. Today, all Democratic candidates are treating it as a crisis, with detailed plans and funding sources to address it, while President Trump ignores the problem and bashes those plans.

Go deeperArrowNov 25, 2019