Prime Minister Justin Trudeau just dropped $4.5 billion of taxpayers’ money on a 67-year-old pipeline, with at least another $7 billion needed to finish what the private sector backed away from.
Is this shrewd investment?
Not according to researchers who just published a paper in the prestigious journal Nature Climate Change. The study ‘Macroeconomic impact of stranded fossil fuel assets’ predicts that up to $4 trillion in global oil investments will evaporate as the world transitions to a low carbon future.
Their research indicates rapidly stranded oil assets could destabilize the global economy before 2035. ‘Our conclusions support the existence of a carbon bubble that, if not deflated early, could lead to a discounted global wealth loss of US $1 to $4 trillion, a loss comparable to the 2008 financial crisis.’