Fossil fuel firms may be misleading shareholders with optimistic forecasts for the future demand of coal, oil and gas to justify multi-billion pound investments, according to a report by Carbon Tracker.
The energy industry’s current predictions for future fossil fuel could be skewed to the upside, because they underestimate changes in emissions policy, technological advances or energy efficiency gains that can cause dramatic changes in demand trends, the study says.
It is the first time a wide range of demand scenarios have been compared with alternative financial market views from reputable sources.
“The real threat lies in the potential for low-carbon technologies to combine and transform society’s relationship with energy. This is currently being overlooked by Big oil, coal and gas,” said Luke Sussams, senior analyst at Carbon Tracker.