Oil prices have hit their lowest point in over six years, leaving global stock markets crashing and traders in a panic.
Fears over China’s economic slowdown, combined with continued pumping for oil despite dropping demand, have caused the volatile commodity’s price to plunge yet again.
Matthew Patsky, CEO of Trillium Asset Management said:
Fossil fuel stocks are volatile investments. Investors and fiduciaries should take this moment to reassess their financial involvement in carbon pollution, climate disruption and the financial risk fossil fuels plays in their portfolio.
Our oil addiction wreaks havoc on the climate.
Extracting and using oil pollutes the air, the water and the environment. Images of sea animals damaged by oil have made the news for years, and yet oil is still being spilled, putting communities and creatures anywhere near planned oil routes in danger.
This latest slump shows that remaining hooked on fossil fuels is not just a climate threat, but is increasingly putting our economy at risk.
Switching from fossil fuels to renewables helps both.
Replacing polluting and high-risk energy sources with ones that are zero carbon will lower emissions, protect long-term investments, provide green jobs, and avoid fluctuating and unpredictable energy costs.
World Bank Group President Jim Yong Kim said:
The good news is that there is action we all can take to turn economies around so they’re investing in what is clean and healthy and there are innovations that will bring future growth, jobs, and competitiveness. Through policy reforms, we can divest and tax that which we don’t want, the carbon that threatens development gains over the last 20 years.
The latest oil price dip is both a wake-up call and an opportunity to move towards a clean, low-risk energy supply.