In this edition:
- Commentary on proposed changes to Colorado’s hydraulic fracturing practices
- Recommendations for reducing financial risk through climate investments
Colorado Task Force Recommendations
The Colorado Oil and Gas Task Force created to “resolve land-use conflicts” between residents and oil and gas companies has submitted nine recommendations to the state’s governor. The group supported changes giving locals the opportunity to offer input on drilling projects, but “stopped short of supporting proposals to give any more power to local governments.”
In a new blog post, RFF’s Alan Krupnick notes that these proposed changes will not be enough to “quell the debate” between industry and local interests. He writes: “The main issue revolves around local government control over oil and gas siting and other activities. The task force didn’t get anywhere on this issue … [and] supporters already are vowing to create ballot initiatives to grant such authority or even ban ‘fracking’ in the state.”
Fossil Fuel Investment Risks
The Bank of England has cautioned that insurance companies “may take a huge hit” if fossil fuel investments are seriously devalued by future climate actions. Bank analysts noted that investors “could be left ‘stranded’ by policy changes” as countries increase their commitments to limiting carbon emissions.
In an article for Resources magazine, Nobel Laureate Robert Engle describes how investors seeking to “hedge the effects of climate change” might focus on companies “expected to do well in high-cost but low-use carbon environment[s],” such as those specializing in alternative energy or sequestration technologies. The article is based on Engle’s lecture at RFF (video available).
