The dangers of divestment – Financial Times

The dangers of divestment – Financial Times

The Financial Times has warned of the economic and social consequences of a premature end to the use of fossil fuels.

The piece in the globally respected publication highlighted the vital role of fossil fuels in an array of different industries.

Without fuel, for example, farm machinery would not be able to produce food, the editorial warned.

It said: “If fossil fuel use were to end tomorrow, the economic consequences would be catastrophic (starvation would follow, for example, as tractors’ fuel tanks ran dry).”

The article also highlighted the fact that similar efforts in the past to divest from “sin stocks” such as those in Tobacco companies has failed to alter the overall economic outlook of the effected companies.

This comes as the World Bank and the IMF meet in Washington DC for their annual meeting. Scheduled for discussion will be the World Bank’s position on investing in fossil fuels in developing nations

The US will use its position on the World Bank to back calls from the developing world to support the use of fossil fuels.

Countries like India and China have relied on coal to power their growth. Both countries are unequivocal about continuing to use the fuel, while improving the technology to make it as clean and efficient as possible.

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