Chapter 11: Risk and Opportunity for Investors on the Path to a Low-Carbon Future

Renewable energy costs are now below those of fossil fuels. Five years ago, fossil fuels were the cheapest baseload. The collapse in renewable costs means that for 85% of the world, renewable electricity is the cheapest source of new baseload. By the early 2020s it will be every major country. Because of the rise of cheap renewables, the fossil fuel system is ripe for disruption. This disruption will be having profound financial implications for investors as a quarter of equity markets and half of corporate bond markets are “carbon entangled”…