“The shift to the shadows is problematic for two main reasons. First, the claims being made by listed firms (and esg funds) that they are helping to decarbonise the planet are questionable. Selling a polluting asset does not, in itself, reduce emissions at all, if it keeps pumping oil or digging up coal.
Second, as dirty assets pass into private hands, it becomes harder to tell if their owners plan to reduce their output over time, or expand it.”
[COMMENTARY]Great points made in this article. Now, should there be regulation that those buying such assets be required to reduce the carbon intensity of these assets over time?
The truth about dirty assets, February 12, 2022, The Economist, UK.