Carbon bubble will plunge the world into another financial crisis – report
"They only believe environmental regulation when they see it," said James Leaton, from Carbon Tracker and a former PwC consultant.
The so-called "carbon bubble" is the result of an over-valuation of oil,coal and gas 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 internationally agreed targets to avoid the threshold for "dangerous" climate change. If the agreements hold, these reserves will be in effect unburnable and so worthless – leading to massive market losses. But the stock markets are betting on countries' inaction on climate change.