How do GHG rules weigh on oil investments? New tool crunches the numbers
A major study of air quality in a northern Alberta indigenous community surrounded by oilsands development says ongoing exposure to airborne chemicals may be affecting human health. (File/ THE CANADIAN PRESS)
Lauren Krugel, The Canadian Press
Published Tuesday, February 16, 2016 1:27PM EST
CALGARY - A new report aims to help investors better understand how their oil holdings may fare under stricter climate change rules.
The report -- Crude Oil Investing in a Carbon Constrained World -- was penned by analysts at ARC Financial, a private equity firm based in Calgary.
The paper is essentially a how-to guide for investors to crunch the numbers, based on publicly available research and models, that helps them decide whether it makes sense to put money into a given oil asset.
Co-author Jackie Forrest says a lot of big oil companies disclose their carbon costs, but it's hard to do a proper comparison because there's no uniform way to calculate those figures.
Earlier this week, the board of governors at the University of British Columbia rejected calls from students and faculty to divest fossil fuel holdings, instead promising to create a low-carbon investment fund.
Forrest says dismissing all fossil fuel investments oversimplifies the issue, adding that many assets can make good returns even with higher carbon costs.