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	<title>Frack Check WV &#187; global impacts</title>
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		<title>Ocean Rise Already Accelerating at Surprising Rate</title>
		<link>https://www.frackcheckwv.net/2015/09/26/ocean-rise-already-accelerating-at-surprising-rate/</link>
		<comments>https://www.frackcheckwv.net/2015/09/26/ocean-rise-already-accelerating-at-surprising-rate/#comments</comments>
		<pubDate>Sun, 27 Sep 2015 00:10:21 +0000</pubDate>
		<dc:creator>Duane Nichols</dc:creator>
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		<guid isPermaLink="false">http://www.frackcheckwv.net/?p=15567</guid>
		<description><![CDATA[World&#8217;s Oceans Could Rise Higher, Sooner, Faster Than Most Thought Possible From an Article by Jon Queally, Common Dreams, July 21, 2015 New research shows that consensus estimates of sea level increases may be underestimating threat; new predictions would see major coastal cities left uninhabitable by next century. If a new scientific paper is proven [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><span style="font-weight: bold;"> </span></p>
<div id="attachment_15571" class="wp-caption alignleft" style="width: 300px">
	<a href="/wp-content/uploads/2015/09/Arctic-Sea-Ice-9-26-15.jpg"><img class="size-medium wp-image-15571" title="Arctic Sea Ice 9-26-15" src="/wp-content/uploads/2015/09/Arctic-Sea-Ice-9-26-15-300x200.jpg" alt="" width="300" height="200" /></a>
	<p class="wp-caption-text">Arctic Sea Ice is Melting</p>
</div>
<p><strong>World&#8217;s Oceans Could Rise Higher, Sooner, Faster Than Most Thought Possible</strong></p>
<p>From an <a title="Ocean Rise higher, sooner, faster" href="http://www.commondreams.org/news/2015/07/21/worlds-oceans-could-rise-higher-sooner-faster-most-thought-possible" target="_blank">Article by Jon Queally, Common Dreams</a>, July 21, 2015</p>
<p>New research shows that consensus estimates of sea level increases may be underestimating threat; new predictions would see major coastal cities left uninhabitable by next century.</p>
<p>If a new scientific paper is proven accurate, the international target of limiting global temperatures to a 2°C rise this century will not be nearly enough to prevent catastrophic melting of ice sheets that would raise sea levels much higher and much faster than previously thought possible.</p>
<p>According to the new study—which has not yet been peer-reviewed, but was written by former NASA scientist James Hansen and 16 other prominent climate researchers—current predictions about the catastrophic impacts of global warming, the melting of vast ice sheets, and sea level rise do not take into account the feedback loop implications of what will occur if large sections of Greenland and the Antarctic are consumed by the world&#8217;s oceans.<strong> </strong></p>
<p>A summarized draft of the full report was released to journalists, with the shocking warning that such glacial melting will &#8220;likely&#8221; occur this century and could cause as much as a ten foot sea-level rise in as little as fifty years. Such a prediction is much more severe than current estimates contained in reports issued by the Intergovernmental Panel on Climate Change (IPCC)—the UN-sponsored body that represents the official global consensus of the scientific community.</p>
<p>&#8220;If the ocean continues to accumulate heat and increase melting of marine-terminating ice shelves of Antarctica and Greenland, a point will be reached at which it is impossible to avoid large scale ice sheet disintegration with sea level rise of at least several meters,&#8221; the paper states.</p>
<p>Separately, the researchers conclude that &#8220;continued high emissions will make multi-meter sea level rise practically unavoidable and likely to occur this century. Social disruption and economic consequences of such large sea level rise could be devastating. It is not difficult to imagine that conflicts arising from forced migrations and economic collapse might make the planet ungovernable, threatening the fabric of civilization.&#8221;</p>
<p><strong>According to Dr. James Hansen: &#8220;Parts of [our coastal cities] would still be sticking above the water, but you couldn&#8217;t live there.&#8221;</strong></p>
<p>Mark Hertsgaard, who attended a press call with Dr. Hansen, <a title="http://www.thedailybeast.com/articles/2015/07/20/climate-seer-james-hansen-issues-his-direst-forecast-yet.html" href="http://www.thedailybeast.com/articles/2015/07/20/climate-seer-james-hansen-issues-his-direst-forecast-yet.html">reports</a> that the work presented by the researchers is warning that humanity could confront &#8220;sea level rise of several meters&#8221; before the end of the century unless greenhouse gas emissions are slashed much faster than currently contemplated.</p>
<p>This roughly 10 feet of sea level rise—well beyond previous estimates—would render coastal cities such as New York, London, and Shanghai uninhabitable. &#8220;Parts of [our coastal cities] would still be sticking above the water,&#8221; Hansen said, &#8220;but you couldn’t live there.&#8221;</p>
<p>This apocalyptic scenario illustrates why the goal of limiting temperature rise to 2 degrees Celsius is not the safe &#8220;guardrail&#8221; most politicians and media coverage imply it is, argue Hansen and 16 colleagues in a blockbuster study they are publishing this week in the peer-reviewed journal <em><a title="http://www.atmospheric-chemistry-and-physics.net/" href="http://www.atmospheric-chemistry-and-physics.net/">Atmospheric Physics and Chemistry</a></em>. On the contrary, a 2C future would be &#8220;highly dangerous.&#8221;</p>
<p>If Hansen is right—and he has been right, sooner, about the big issues in climate science longer than anyone—the implications are vast and profound.</p>
<p>In the call with reporters, Hansen explained that time is of the essence, given the upcoming <a title="http://tag/cop21" href="mip://0c6b0618/tag/cop21">climate talks in Paris</a> this year and the grave consequences the world faces if bold, collective action is not taken immediately. &#8220;We have a global crisis that calls for international cooperation to reduce emissions as rapidly as practical,&#8221; the paper states.</p>
<p>Hansen said he has long believed that many of the existing models were under-estimating the potential impacts of ice sheet melting, and &#8220;Now we have evidence to make that statement based on much more than suspicion.&#8221;</p>
<p>Though he acknowledged the publication of the paper was unorthodox, Hansen told reporters that the research itself is &#8220;substantially more persuasive than anything previously published.&#8221;</p>
<p>For his part, Eric Holthaus, a meteorologist who writes about weather and climate for <em>Slate</em>, said the &#8220;bombshell&#8221; findings are both credible and terrifying. Holthaus <a title="http://www.slate.com/blogs/the_slatest/2015/07/20/sea_level_study_james_hansen_issues_dire_climate_warning.html" href="http://www.slate.com/blogs/the_slatest/2015/07/20/sea_level_study_james_hansen_issues_dire_climate_warning.html">writes</a>:</p>
<p>To come to their findings, the authors used a mixture of paleoclimate records, computer models, and observations of current rates of sea level rise, but &#8220;the real world is moving somewhat faster than the model,&#8221; Hansen says.</p>
<p>[...] The implications are mindboggling: In the study’s likely scenario, New York City—and every other coastal city on the planet—<a title="http://www.thedailybeast.com/articles/2015/07/20/climate-seer-james-hansen-issues-his-direst-forecast-yet.html?utm_content=buffer1b0f4&amp;utm_medium=social&amp;utm_source=twitter.com&amp;utm_campaign=buffer" href="http://www.thedailybeast.com/articles/2015/07/20/climate-seer-james-hansen-issues-his-direst-forecast-yet.html?utm_content=buffer1b0f4&amp;utm_medium=social&amp;utm_source=twitter.com&amp;utm_campaign=buffer">may only have</a> a few more decades of habitability left. That dire prediction, in Hansen’s view, requires &#8220;emergency cooperation among nations.&#8221;</p>
<p>In response to the paper, climate scientist Michael Oppenheimer of Princeton University <a title="http://www.washingtonpost.com/news/energy-environment/wp/2015/07/20/the-worlds-most-famous-climate-scientist-just-outlined-an-alarming-scenario-for-our-planets-future/" href="http://www.washingtonpost.com/news/energy-environment/wp/2015/07/20/the-worlds-most-famous-climate-scientist-just-outlined-an-alarming-scenario-for-our-planets-future/">affirmed</a>: &#8220;If we cook the planet long enough at about two degrees warming, there is likely to be a staggering amount of sea level rise. Key questions are when would greenhouse-gas emissions lock in this sea level rise and how fast would it happen? The latter point is critical to understanding whether and how we would be able to deal with such a threat.&#8221;</p>
<p>The new research, Oppenheimer added, &#8220;takes a stab at answering the &#8216;how soon?&#8217; question but we remain largely in the dark. Giving the state of uncertainty and the high risk, humanity better get its collective foot off the accelerator.&#8221;</p>
<p>And as Hertsgaard notes, Hansen&#8217;s track record on making climate predictions should command respect from people around the world. The larger question, however, is whether humanity has the capacity to act.</p>
<p>&#8220;The climate challenge has long amounted to a race between the imperatives of science and the contingencies of politics,&#8221; Hertsgaard concludes. &#8220;With Hansen’s paper, the science has gotten harsher, even as the <a title="http://phys.org/news/2015-05-limit-climate.html" href="http://phys.org/news/2015-05-limit-climate.html"><em>Nature Climate Change</em> study</a> affirms that humanity can still choose life, if it will. The question now is how the politics will respond—now, at Paris in December, and beyond.&#8221;</p>
<p>See also: <a title="/" href="http://www.FrackCheckWV.net">www.FrackCheckWV.net</a></p>
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		<title>A 50th Anniversary Few Remember: LBJ&#8217;s Warning on Carbon Dioxide</title>
		<link>https://www.frackcheckwv.net/2015/02/08/a-50th-anniversary-few-remember-lbjs-warning-on-carbon-dioxide/</link>
		<comments>https://www.frackcheckwv.net/2015/02/08/a-50th-anniversary-few-remember-lbjs-warning-on-carbon-dioxide/#comments</comments>
		<pubDate>Sun, 08 Feb 2015 12:17:08 +0000</pubDate>
		<dc:creator>Duane Nichols</dc:creator>
				<category><![CDATA[Advocacy]]></category>
		<category><![CDATA[Chemicals]]></category>
		<category><![CDATA[Events]]></category>
		<category><![CDATA[Study]]></category>
		<category><![CDATA[50 years of neglect]]></category>
		<category><![CDATA[carbon dioxide]]></category>
		<category><![CDATA[fossil fuels]]></category>
		<category><![CDATA[global impacts]]></category>
		<category><![CDATA[LBJ]]></category>
		<category><![CDATA[President Johnson]]></category>
		<category><![CDATA[science panel]]></category>

		<guid isPermaLink="false">http://www.frackcheckwv.net/?p=13772</guid>
		<description><![CDATA[Fifty years ago this month President Johnson voiced concern over invisible fossil fuel emissions in a special message to Congress. It was the first time a U.S. president warned the nation about greenhouse gases and global warming. From an Article by Marianne Lavelle, The Daily Climate, February 2, 2015 It is a key moment in climate [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><strong>Fifty years ago this month President Johnson voiced concern over invisible fossil fuel emissions in a special message to Congress. It was the first time a U.S. president warned the nation about greenhouse gases and global warming.</strong></p>
<p>From an <a href="http://www.dailyclimate.org/tdc-newsroom/2015/02/president-johnson-carbon-climate-warning">Article by Marianne Lavelle</a>, The Daily Climate, February 2, 2015</p>
<p>It is a key moment in climate change history that few remember: This week marks the 50th anniversary of the first presidential mention of the environmental risk of carbon dioxide pollution from fossil fuels.</p>
<p>This generation has altered the composition of the atmosphere on a global scale through radioactive materials and a steady increase in carbon dioxide from the burning of fossil fuels.</p>
<p>President Lyndon Baines Johnson, in a February 8, 1965 special message to Congress warned about build-up of the invisible air pollutant that scientists recognize today as the primary contributor to global warming.</p>
<p>&#8220;Air pollution is no longer confined to isolated places,&#8221; said Johnson less than three weeks after his 1965 inauguration. &#8220;This generation has altered the composition of the atmosphere on a global scale through radioactive materials and a steady increase in carbon dioxide from the burning of fossil fuels.&#8221;</p>
<p>The speech mainly focused on all-too-visible pollution of land and waterways, including roadside auto graveyards, strip mine sites, and soot pollution that had marred even the White House.</p>
<p>Within the year, Johnson would sign six new environmental laws during a period better remembered for the strife that led to the Voting Rights Act of 1965 and the escalation of the Vietnam War. Johnson also that year established a dozen new national monuments, historic sites, and recreation areas; and submitted a draft nuclear non-proliferation treaty to the United Nations.</p>
<p>Carbon dioxide risk, of course, still stymies policymakers. But it was not ignored entirely in the wake of Johnson&#8217;s &#8220;Special Message to Congress on Conservation and Restoration of Natural Beauty.&#8221; In fact, the warnings and predictions given to Johnson from his science team proved remarkably prescient.</p>
<p>Coal, oil, and natural gas burning would lift atmospheric carbon dioxide between 14 percent and 30 percent by the year 2000, the panel estimated. In fact, CO2 increased 15.5 percent by 2000, and is 25 percent higher today than in 1965.</p>
<p>The science on carbon dioxide as known at the time, including forecasts of warming and sea level rise, was detailed in a chapter of a report on environmental pollution issued later that year by the president&#8217;s Science Advisory Committee. Pioneering climate scientist Roger Revelle chaired the sub-committee that wrote the chapter in the November 1965 report. While citing a need for better calculations with &#8220;large computers,&#8221; Revelle&#8217;s panel delivered a forecast on growing atmospheric carbon that proved on-target.</p>
<p>&#8220;Man is unwittingly conducting a vast geophysical experiment,&#8221; the report said, echoing language Revelle first had used in a 1957 scientific paper when he was at the University of California, San Diego, Scripps Institution of Oceanography. &#8220;Within a few generations, he is burning the fossil fuels that accumulated in the earth over the past 500 million years.&#8221;</p>
<p>Ken Caldeira, atmospheric scientist at the Carnegie Institution for Science&#8217;s Department of Global Ecology, said the exchanges between scientists and the White House 50 years ago have significance for climate discussions today.</p>
<p>&#8220;To the best of my knowledge, 1965 was the first time that a U.S. President was ever officially warned of environmental risks from the accumulation of fossil-fuel carbon dioxide in the atmosphere,&#8221; Caldeira said in an email. &#8220;This year will mark a half-century of Presidential knowledge of the risks of climate change. I wish I could say that there has been a half-century of concerted efforts to reduce these risks.</p>
<p>&#8220;The science of climate and the carbon-cycle that was reported to President Johnson in 1965 largely holds up today, demonstrating that climate science is a mature science,&#8221; Caldeira added. &#8220;Climate scientists are still arguing about the details, but knowledgeable people have agreed about the fundamentals for a long time.&#8221;</p>
<p>The only surviving member of the sub-panel, Wallace Broecker was a geology professor at Columbia University&#8217;s Earth Institute. As a young Columbia faculty member in 1965, Broecker had already begun what would be his seminal work on ocean chemistry and the carbon cycle; the chapter includes an appendix of detailed calculations on that subject.</p>
<p>A clue to Johnson&#8217;s own thinking about his environmental message – and his concern about potential push-back he&#8217;d face from industry proponents – may be found in a telephone conversation he had three days before sending it to Congress. Johnson sought support for his environmental initiatives from United Auto Workers&#8217; union chief Walter Reuther (from the Benwood section of Wheeling,WV), a recording of the phone call shows.</p>
<p>&#8220;Now my natural beauty message is going up Monday, and it is an eloquent thing,&#8221; Johnson told Reuther. &#8220;We think it will be our best message.&#8221; He added that White House speechwriter Richard Goodwin and his team had crafted the language with two figures who later would be recognized as icons of the conservation movement, Interior Secretary Stewart Udall and financier-philanthropist Laurance Rockefeller.</p>
<p>Udall had two years earlier authored the book, The Quiet Crisis, about land and water degradation. Rockefeller co-founded the American Conservation Association, which later merged into the World Wildlife Fund. The two were then working closely with the president&#8217;s wife, Lady Bird Johnson, on the environmental initiatives she hoped to make her legacy.</p>
<p>In the following months, the president would sign the legislation most associated with Lady Bird—the Highway Beautification Act, which forced landscaping beside federally funded roads and removal of junkyards. Other 1965 laws included the Water Quality Act, the Solid Waste Disposal Act, and the Land and Conservation Fund Act.</p>
<p>&#8220;There are more thinking people in America thinking of improving their land and their life at any period in America since I&#8217;ve known it,&#8221; Johnson said in the eight-minute call with Reuther. &#8220;They&#8217;re fussing about junkyards along the roads and pollution in the rivers, and the whole natural beauty thing. There&#8217;ve been more editorials about it, more garden clubs interested. I really feel it… If that&#8217;s true, it&#8217;s a good sign. It&#8217;s something we want to build on.&#8221;</p>
<div id="attachment_13781" class="wp-caption alignright" style="width: 300px">
	<a href="/wp-content/uploads/2015/02/Roger-Revelle-and-LBJ.jpg"><img class="size-medium wp-image-13781" title="Roger Revelle and LBJ" src="/wp-content/uploads/2015/02/Roger-Revelle-and-LBJ-300x169.jpg" alt="" width="300" height="169" /></a>
	<p class="wp-caption-text">Roger Revelle &amp; President LBJ</p>
</div>
<p><strong>Climate scientist Roger Revelle shakes hands with President Johnson in the Oval Office in 1965, 50 years ago.</strong></p>
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		<title>Global Carbon Bubble May Cause Worldwide Financial Crisis</title>
		<link>https://www.frackcheckwv.net/2013/05/04/global-carbon-bubble-may-cause-worldwide-financial-crisis/</link>
		<comments>https://www.frackcheckwv.net/2013/05/04/global-carbon-bubble-may-cause-worldwide-financial-crisis/#comments</comments>
		<pubDate>Sun, 05 May 2013 01:49:27 +0000</pubDate>
		<dc:creator>Duane Nichols</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[carbon dioxide]]></category>
		<category><![CDATA[climate change]]></category>
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		<description><![CDATA[Tony Greenham, Carbon Tracker Institute Recent Report of the Carbon Tracker Institute Article by Damian Carrington, The Guardian, April 18, 2013 The world could be heading for a major economic crisis as stock markets inflate an investment bubble in fossil fuels to the tune of trillions of dollars, according to leading economists. &#8220;The financial crisis [...]]]></description>
			<content:encoded><![CDATA[<p></p><div class="mceTemp">
<dl id="attachment_8255" class="wp-caption alignleft" style="width: 160px;">
<dt class="wp-caption-dt"><a href="/wp-content/uploads/2013/05/Carbon-Tracker-Initiative-Tony-Greenham.jpg"><img class="size-thumbnail wp-image-8255" title="Carbon Tracker Initiative Tony Greenham" src="/wp-content/uploads/2013/05/Carbon-Tracker-Initiative-Tony-Greenham-150x150.jpg" alt="" width="150" height="150" /></a></dt>
<dd class="wp-caption-dd">Tony Greenham, Carbon Tracker Institute</dd>
</dl>
<p><strong>Recent Report of the Carbon Tracker Institute</strong></p>
<p>Article by Damian Carrington, The Guardian, April 18, 2013</p>
<p>The world could be heading for a major economic crisis as <a title="http://www.guardian.co.uk/business/stock-markets" href="http://www.guardian.co.uk/business/stock-markets">stock markets</a> inflate an investment bubble in <a title="http://www.guardian.co.uk/environment/fossil-fuels" href="http://www.guardian.co.uk/environment/fossil-fuels">fossil fuels</a> to the tune of trillions of dollars, according to leading economists.</p>
<p>&#8220;The <a title="http://www.guardian.co.uk/business/financial-crisis" href="http://www.guardian.co.uk/business/financial-crisis">financial crisis</a> has shown what happens when risks accumulate unnoticed,&#8221; said Lord (Nicholas) Stern, a professor at the London School of Economics. He said the risk was &#8220;very big indeed&#8221; and that almost all investors and regulators were failing to address it.</p>
<p>The so-called &#8220;<a title="http://www.guardian.co.uk/environment/2013/apr/17/why-cant-we-give-up-fossil-fuels" href="http://www.guardian.co.uk/environment/2013/apr/17/why-cant-we-give-up-fossil-fuels">carbon bubble</a>&#8221; is the result of an over-valuation of <a title="http://www.guardian.co.uk/environment/oil" href="http://www.guardian.co.uk/environment/oil">oil</a>, <a title="http://www.guardian.co.uk/environment/coal" href="http://www.guardian.co.uk/environment/coal">coal</a> and <a title="http://www.guardian.co.uk/environment/gas" href="http://www.guardian.co.uk/environment/gas">gas</a> reserves held by fossil fuel companies. According to a report published on Friday, at least two-thirds of these reserves will have to remain underground if the world is to meet existing <a title="http://www.guardian.co.uk/environment/2009/dec/18/copenhagen-deal" href="http://www.guardian.co.uk/environment/2009/dec/18/copenhagen-deal">internationally agreed targets</a> to avoid the threshold for &#8220;dangerous&#8221; <a title="http://www.guardian.co.uk/environment/climate-change" href="http://www.guardian.co.uk/environment/climate-change">climate change</a>. <a title="http://www.guardian.co.uk/environment/2010/dec/09/why-havent-governments-solved-global-warming" href="http://www.guardian.co.uk/environment/2010/dec/09/why-havent-governments-solved-global-warming">If the agreements hold</a>, these reserves will be in effect unburnable and so worthless – leading to massive market losses. But the stock markets are betting on countries&#8217; inaction on climate change.</p>
<p>The stark <a title="http://www.carbontracker.org/wastedcapital" href="http://www.carbontracker.org/wastedcapital">report is by Stern and the thinktank Carbon Tracker</a>. Their warning is supported by organisations including HSBC, Citi, Standard and Poor&#8217;s and the International <a title="http://www.guardian.co.uk/environment/energy" href="http://www.guardian.co.uk/environment/energy">Energy</a> Agency. The <a title="http://www.guardian.co.uk/environment/2012/jan/19/fossil-fuels-sub-prime-mervyn-king" href="http://www.guardian.co.uk/environment/2012/jan/19/fossil-fuels-sub-prime-mervyn-king">Bank of England has also recognised</a> that a collapse in the value of oil, gas and coal assets as nations tackle global warming is a potential systemic risk to the economy, with London being particularly at risk owing to its huge listings of coal.</p>
<p>Stern said that far from reducing efforts to develop fossil fuels, the top 200 companies spent $674bn (£441bn) in 2012 to find and exploit even more new resources, a sum equivalent to 1% of global GDP, which could end up as &#8220;stranded&#8221; or valueless assets. <a title="http://www.guardian.co.uk/environment/2011/feb/15/stern-review" href="http://www.guardian.co.uk/environment/2011/feb/15/stern-review">Stern&#8217;s landmark 2006 report</a> on the economic impact of climate change – commissioned by the then chancellor, Gordon Brown – <a title="http://webarchive.nationalarchives.gov.uk/+/http://www.hm-treasury.gov.uk/sternreview_index.htm" href="http://webarchive.nationalarchives.gov.uk/+/http:/www.hm-treasury.gov.uk/sternreview_index.htm">concluded that spending 1% of GDP would pay for a transition</a> to a clean and sustainable economy.</p>
<p>The world&#8217;s governments have agreed to restrict the global temperature rise to 2C, beyond which the impacts become severe and unpredictable. But Stern said the investors clearly did not believe action to curb climate change was going to be taken. &#8220;They can&#8217;t believe that and also believe that the markets are sensibly valued now.&#8221;</p>
<p>&#8220;They only believe environmental regulation when they see it,&#8221; said James Leaton, from <a title="http://www.carbontracker.org/" href="http://www.carbontracker.org/">Carbon Tracker</a> and a former PwC consultant. He said short-termism in financial markets was the other major reason for the carbon bubble. &#8220;Analysts say you should ride the train until just before it goes off the cliff. Each thinks they are smart enough to get off in time, but not everyone can get out of the door at the same time. That is why you get bubbles and crashes.&#8221;</p>
<p>Paul Spedding, an oil and gas analyst at HSBC, said: &#8220;The scale of &#8216;listed&#8217; unburnable carbon revealed in this report is astonishing. This report makes it clear that &#8216;business as usual&#8217; is not a viable option for the fossil fuel industry in the long term. [The market] is assuming it will get early warning, but my worry is that things often happen suddenly in the oil and gas sector.&#8221;</p>
<p>HSBC warned that 40-60% of the market capitalisation of <a title="http://www.guardian.co.uk/business/oilandgascompanies" href="http://www.guardian.co.uk/business/oilandgascompanies">oil and gas companies</a> was at risk from the carbon bubble, with the top 200 fossil fuel companies alone having a current value of $4tn, along with $1.5tn debt.</p>
<p><a title="http://johnmcfall.com/" href="http://johnmcfall.com/">Lord McFall</a>, who chaired the Commons Treasury select committee for a decade, said: &#8220;Despite its devastating scale, the banking crisis was at its heart an avoidable crisis: the threat of significant carbon writedown has the unmistakable characteristics of the same endemic problems.&#8221;</p>
<p>The report calculates that the world&#8217;s currently indicated fossil fuel reserves equate to 2,860bn tonnes of carbon dioxide, but that just 31% could be burned for an 80% chance of keeping below a 2C temperature rise. For a 50% chance of 2C or less, just 38% could be burned.</p>
<p><a title="http://www.guardian.co.uk/environment/2012/may/10/carbon-capture-storage" href="http://www.guardian.co.uk/environment/2012/may/10/carbon-capture-storage">Carbon capture and storage</a> technology, which buries emissions underground, can play a role in the future, but even an optimistic scenario which sees 3,800 commercial projects worldwide would allow only an extra 4% of fossil fuel reserves to be burned. There are currently no commercial projects up and running. The normally conservative <a title="http://www.iea.org/" href="http://www.iea.org/">International Energy Agency</a> has also concluded that a major part of fossil fuel reserves is unburnable.</p>
<p>Citi bank warned investors in Australia&#8217;s vast coal industry that little could be done to avoid the future loss of value in the face of action on climate change. &#8220;If the unburnable carbon scenario does occur, it is difficult to see how the value of fossil fuel reserves can be maintained, so we see few options for risk mitigation.&#8221;</p>
<p>Ratings agencies have expressed concerns, with Standard and Poor&#8217;s concluding that the risk could lead to the downgrading of the credit ratings of oil companies within a few years.</p>
<p>Steven Oman, senior vice-president at Moody&#8217;s, said: &#8220;It behoves us as investors and as a society to know the true cost of something so that intelligent and constructive policy and investment decisions can be made. Too often the true costs are treated as unquantifiable or even ignored.&#8221;</p>
<p>Jens Peers, who manages €4bn (£3bn) for Mirova, part of €300bn asset managers Natixis, said: &#8220;It is shocking to see the report&#8217;s numbers, as they are worse than people realise. The risk is massive, but a lot of asset managers think they have a lot of time. I think they are wrong.&#8221; He said a key moment will come in 2015, the date when the world&#8217;s governments have pledged to strike a global deal to limit <a title="http://www.guardian.co.uk/environment/carbon-emissions" href="http://www.guardian.co.uk/environment/carbon-emissions">carbon emissions</a>. But he said that fund managers need to move now. If they wait till 2015, &#8220;it will be too late for them to take action.&#8221;</p>
<p>Pension funds are also concerned. &#8220;Every pension fund manager needs to ask themselves have we incorporated climate change and carbon risk into our investment strategy? If the answer is no, they need to start to now,&#8221; said Howard Pearce, head of pension fund management at the Environment Agency, which holds £2bn in assets.</p>
<p>Stern and Leaton both point to China as evidence that carbon cuts are likely to be delivered. China&#8217;s leaders have said its coal use will peak in the next five years, said Leaton, but this has not been priced in. &#8220;I don&#8217;t know why the market does not believe China,&#8221; he said. &#8220;When it says it is going to do something, it usually does.&#8221; He said the US and Australia were banking on selling coal to China but that this &#8220;doesn&#8217;t add up&#8221;.</p>
<p>Jeremy Grantham, a billionaire fund manager who oversees $106bn of assets, said his company was on the verge of <a title="http://www.guardian.co.uk/environment/blog/2013/apr/16/jeremy-grantham-food-oil-capitalism" href="http://www.guardian.co.uk/environment/blog/2013/apr/16/jeremy-grantham-food-oil-capitalism">pulling out of all coal and unconventional fossil fuels</a>, such as oil from tar sands. &#8220;The probability of them running into trouble is too high for me to take that risk as an investor.&#8221; He said: &#8220;If we mean to burn all the coal and any appreciable percentage of the tar sands, or other unconventional oil and gas then we&#8217;re cooked. [There are] terrible consequences that we will lay at the door of our grandchildren.&#8221;</p>
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