New research by the Carbon Tracker Initiative – Carbon Supply Cost Curves, a new capital management tool for investors

Jay OwenSRI/ESG News

New research by the Carbon Tracker Initiative, ‘Carbon supply cost curves: Evaluating financial risk to oil capital expenditures’, today reveals how many oil projects make neither economic nor climate sense.  

This report and the accompanying technical papers were produced in collaboration with Energy Transition Advisors and can be read here.

The risk analysis identifies that many higher cost oil projects are too far up the cost curve to fit within low demand, low price scenarios that would also limit oil-related emissions to within a carbon budget. The research identifies that $1.1 trillion of potential capital expenditure (capex) up to 2025 in key locations by province requires a market price over $95/bbl.

CTI recommends that investors now engage with companies to discuss the risk of capital being wasted on carbon intensive projects that are not certain to generate value, and are not consistent with the coming carbon constrained world.

To read the report and accompanying technical papers, click here.

Please share these reports through your networks and via Twitter. Below is a suggested tweet:

New CTI report: $1.1tn of oil capital is at risk over the next decade #carboncost

All the best,

The Carbon Tracker Team

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CTIPR Final_1_May.pdf
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