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UK pension funds get green light to dump fossil fuel investments

richfool
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UK pension funds get green light to dump fossil fuel investments

#146520

Postby richfool » June 18th, 2018, 8:03 pm

I thought this might be of interest to Oil & Gas investors:

UK pension funds get green light to dump fossil fuel investments:
Managers of the £1.5tn invested in Britain’sworkplace pension schemes are to be given new powers to dump shares in oil, gas and coal companies in favour of long-term investment in green and “social impact” opportunities.

Government proposals published on Monday are designed to give pension fund trustees more confidence to divest from environmentally damaging fossil fuels and put their cash in green alternatives if it meets their members’ wishes. Until now many pension trustees have been hamstrung by fiduciary duties that they feel requires them to seek the best returns irrespective of the threat of climate change.


https://uk.finance.yahoo.com/news/uk-pe ... 36749.html

Sorcery
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Re: UK pension funds get green light to dump fossil fuel investments

#146709

Postby Sorcery » June 19th, 2018, 3:48 pm

richfool wrote:I thought this might be of interest to Oil & Gas investors:

UK pension funds get green light to dump fossil fuel investments:
Managers of the £1.5tn invested in Britain’sworkplace pension schemes are to be given new powers to dump shares in oil, gas and coal companies in favour of long-term investment in green and “social impact” opportunities.


More the fool them then. There is nothing moral to me about relying on windfarms & solar in the UK. We are imho going to continue to use fossil fuels until we get Low Energy Nuclear Reactons or commercial fusion or we run out of fossil fuels.

Government proposal is to enable posturings, OK until we get people dying of hypothermia in their own homes.

dspp
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Re: UK pension funds get green light to dump fossil fuel investments

#274541

Postby dspp » January 2nd, 2020, 9:29 am

"Morrison has shown himself to be beholden to coal interests and his administration is considered to have conspired with a small number of petrostates to sabotage the recent UN climate conference in Madrid (“COP25”), seen as a last ditch effort to keep planetary warming below a level (1.5C) considered by many to constitute “dangerous” planetary warming.

But Australians need only wake up in the morning, turn on the television, read the newspaper or look out the window to see what is increasingly obvious to many – for Australia, dangerous climate change is already here. It’s simply a matter of how much worse we’re willing to allow it to get.

Australia is experiencing a climate emergency. It is literally burning. It needs leadership that is able to recognise that and act. And it needs voters to hold politicians accountable at the ballot box."


https://www.theguardian.com/commentisfr ... th-you-now

“2020. you wombling idiots in charge who don’t get this: global warming is real.”

https://www.theguardian.com/australia-n ... -emergency

I wonder if the Adani coalmine project in Australia will go ahead. Likewise I wonder if Australia will switch from being an COP-wrecker to a COP-supporter. This sort of thing is a reminder to humans that sometimes change happens faster than they can drive. Anyone investing in fossil fuel exposed sectors needs to be thinking through the consequences & implications.

regards, dspp

miner1000
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Re: UK pension funds get green light to dump fossil fuel investments

#274564

Postby miner1000 » January 2nd, 2020, 11:08 am

"Morrison has shown himself to be beholden to coal interests and his administration is considered to have conspired with a small number of petrostates to sabotage the recent UN climate conference in Madrid (“COP25”), seen as a last ditch effort to keep planetary warming below a level (1.5C) considered by many to constitute “dangerous” planetary warming.

But Australians need only wake up in the morning, turn on the television, read the newspaper or look out the window to see what is increasingly obvious to many – for Australia, dangerous climate change is already here. It’s simply a matter of how much worse we’re willing to allow it to get.

Australia is experiencing a climate emergency. It is literally burning. It needs leadership that is able to recognise that and act. And it needs voters to hold politicians accountable at the ballot box.".


what a load of absolute rubbish dspp! The Guardian spouts the sort of stuff that appeals to the XR nutters.

Do you realise that Australia has a population of less than 25 Million people?

China has 2 Billion and is building a new coal fired power station every week or so.

The Guardian would like Australia to stop producing coal and selling it (and Iron ore) to China is suppose. with the loss of jobs lower standard of living lower GDP etc etc that goes with it.

Unless China does something about emissions, anything Australia does would be insignificant on the global scale.

Quite why anyone still reads the Grauniad I really dont know.

Miner

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Re: UK pension funds get green light to dump fossil fuel investments

#274568

Postby johnhemming » January 2nd, 2020, 11:32 am

The Norwegian sovereign fund currently holds over 2% of BP and over 2% of Shell. They are, perhaps, in the strongest position to decide to divest themselves of all fossil fuel extractors as they have no market competition for returns and are supported by a government which supports COP (I assume without checking).

Hence until they have shifted I would not expect any stock picking funds in the UK to shift beyond those which particularly advertise their approach as being non fossil fuel.

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Re: UK pension funds get green light to dump fossil fuel investments

#274574

Postby dspp » January 2nd, 2020, 11:48 am

miner1000 wrote:
"Morrison has shown himself to be beholden to coal interests and his administration is considered to have conspired with a small number of petrostates to sabotage the recent UN climate conference in Madrid (“COP25”), seen as a last ditch effort to keep planetary warming below a level (1.5C) considered by many to constitute “dangerous” planetary warming.

But Australians need only wake up in the morning, turn on the television, read the newspaper or look out the window to see what is increasingly obvious to many – for Australia, dangerous climate change is already here. It’s simply a matter of how much worse we’re willing to allow it to get.

Australia is experiencing a climate emergency. It is literally burning. It needs leadership that is able to recognise that and act. And it needs voters to hold politicians accountable at the ballot box.".


what a load of absolute rubbish dspp! The Guardian spouts the sort of stuff that appeals to the XR nutters.

Do you realise that Australia has a population of less than 25 Million people?

China has 2 Billion and is building a new coal fired power station every week or so.

The Guardian would like Australia to stop producing coal and selling it (and Iron ore) to China is suppose. with the loss of jobs lower standard of living lower GDP etc etc that goes with it.

Unless China does something about emissions, anything Australia does would be insignificant on the global scale.

Quite why anyone still reads the Grauniad I really dont know.

Miner


You are of course welcome to your opinion .......... . The IPCC reports would suggest that climate change concerns are not an area for 'nutters'. They most definitely ought to be a relevant factor for serious investors.

Chinese coal is easing towards a plateau, probably in about 2025 or so. In my opinion there is a mismatch in the data between the rate of coal station builds and the combined domestic coal extraction/ coal imports.

My personal best guess is that they will actually go into a coal taper after about 2025, not a plateau, and that they will prematurely retire some of the older coal generating plant and so have a reduction in the avge age of plant, i.e. a fleet rejuvenation. I base that on the political & pollution issues I see in China, and the very rapid growth in renewables I see in China. There are also the economic growth data problems which may mean that growth is lower than reported (say, maybe 4%, not 7%) which in turn would lead to a lower overall energy growth, and greater potential for coal curtailment.

Furthermore I would hazard a guess that in a declining growth scenario, and a coal taper scenario, they will choke imports vs the domestic and will overcome the internal logistical difficulties that preference imports. That might not directly affect Australia, but in combination with what I see happening in India, it could cause a reduction in both Indonesian and Australian coal exports.

Some helpful reading:

https://www.reuters.com/article/us-chin ... SKCN1VD0BD
https://www.eia.gov/todayinenergy/detail.php?id=33092
https://www.eia.gov/beta/international/ ... hp?iso=CHN

That Reuters links relies on a Chinese study that I read at the time. There are internal wrangles over coal studies within China by the various Chinese economists (I'm sorry but I cannot find the links to the wrangles, I thought I had put it on the coal thread but apparently not) , and it is by no means certain that the special pleading of coal will be permitted. My opinion (fwiw) is that the Chinese authorities are currently happy to see a surplus of mines/generators built in coal/nuclear/renewables, knowing that they can switch off the coal, and back out the nuclear if necessary. By having too much capacity they are never at risk of running out of power (a real political legitimacy issue), and in the short term wasted investment does at least keep the construction sector busy and employment up (again political legitimacy).

I think you'll find that quite a lot of people read the Guardian. Unlike most newspapers the readership of the Guardian is growing. Here in the Oil & Gas & Energy board we are keen to make good investment decisions, and that requires good input data from wherever we find it. I am fortunate in that my day job requires visiting China and India and others in the energy sector, but one needs to balance personal observations with as wide a set of input sources as possible.

regards, dspp

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Re: UK pension funds get green light to dump fossil fuel investments

#274580

Postby Lanark » January 2nd, 2020, 11:53 am

miner1000, China is not a first world country, the USA and western europe have been burning fossil fuels for decades before China started to develop.

If developed countries cannot organise themselves in sustainable ways, there is no hope of 2nd and 3rd world countries following in their path and the future for human life on this planet is doomed.

Doing nothing and pretending the problem will go away is not going to work.

Most of the energy production in China is there to back their large scale production of items which are shipped over to the west at a huge energy cost - we in the west have many opportunities to influence that behaviour by introducing import taxes or just by buying less stuff.

Also the Guardian while not perfect is probably the best newspaper in the whole of Europe, you should try reading it sometime.

and on preview: what dspp said

miner1000
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Re: UK pension funds get green light to dump fossil fuel investments

#274728

Postby miner1000 » January 3rd, 2020, 1:37 am

miner1000, China is not a first world country, the USA and western europe have been burning fossil fuels for decades before China started to develop.

If developed countries cannot organise themselves in sustainable ways, there is no hope of 2nd and 3rd world countries following in their path and the future for human life on this planet is doomed.


I am not sure whether or not China can be termed a first world country. It does not detract from my suggestion though that China is the world's second largest economy and likely to be the largest by around 2032. China, India and the USA are the big polluters. The culture there seems impervious to the climate change argument. If XR protesters turned up in China as they did in London last year, they would, of course, be locked up en masse.

The UK and Australia can do little to significantly impact emissions control. Setting examples is not enough. The politicians and scientist need to find a way to slow global warming or wait until the next ice age does it for them. Moaning about Morrison and Johnson not being green enough won't work. China and India need to be "solved" and the USA needs to be encouraged to do much more.

In the meantime RDSB stays in my income portfolio. And I dont think I will be reading the Guardian. Far too left wing for my style. I will stick with the Times.

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Re: UK pension funds get green light to dump fossil fuel investments

#274734

Postby JoyofBricks8 » January 3rd, 2020, 3:17 am

Lanark wrote:
Also the Guardian while not perfect is probably the best newspaper in the whole of Europe, you should try reading it sometime.


I was with you right up until this gem which provoked considerable hilarity in the JoB household.

The Guardian editorial line has been wildly wrong on just about every issue in my memory.

They were pro joining the Euro: https://www.theguardian.com/politics/20 ... 25/euro.eu

Failed.

They supported the Lib-Dems in the 2010 election:

https://www.theguardian.com/commentisfr ... t-has-come

Lost: Destroyed the LibDems.

They supported Alternative Vote in the electoral reform referendum:

https://www.theguardian.com/commentisfr ... -editorial

Lost. .

They supported the overthrow of Col. Ghaddafi leading to anarchy and misery in Libya

https://www.theguardian.com/commentisfr ... rial-libya

Catastrophe.

They supported the lunacy of Corbyns addition to the Labour leadership ballot:

https://www.theguardian.com/commentisfr ... re-contest

Bad idea.

They supported the doomed Yvette Cooper for the Labour leadership though:

https://www.theguardian.com/commentisfr ... emy-corbyn

Failed.

They then tacked to support Owen Smiths doomed challenge to Corbyn in 2016:
https://www.theguardian.com/commentisfr ... experiment

Failed.

They supported Remain:

https://www.theguardian.com/commentisfr ... d-isolated

Lost.

They supported Hilary Clinton in 2016

Lost.

They supported nationalisation of broadband:

https://www.theguardian.com/commentisfr ... -necessary

Nope.

They supported Labour in 2019 election:

https://www.theguardian.com/commentisfr ... his-tracks

Lost. Destroyed Labour.


Quite frankly they are a joke. I have made tens of thousands of pounds betting against whatever the Guardian editorial line of the day is. I do not expect that to change anytime soon.


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