The burning of fossil fuels to produce energy makes up the vast majority of the heat-trapping emissions scientists say are responsible for rising average temperatures. In order to stay within a safe temperature range, most scientists agree that emissions must be reduced. It’s why divestment supporters say that holding stocks in fossil fuel companies is bad both for the environment and for long-term economic growth.
In financial terms, some investors worry that if government regulation or other restrictions prevent major energy firms from tapping the full extent of their fossil fuel reserves, it could burst a “carbon bubble” somewhere down the road. But major oil firms have rejected the idea that vast swaths of oil, gas, and coal will become “stranded assets,” citing growing energy needs across the developing world.
