EnergyWatch

Pension companies will squeeze oil giants

Oil and gas companies have invested billions in oil which cannot be sold if the world meets climate reduction targets set out in the Paris deal.

Photo: /ritzau/Charlotte de la Fuente

Some of the world's largest oil and gas companies have vast sums located in oil reserves, which will offer few financial returns if the climate reduction targets in the Paris climate deal are upheld. This is the conclusion of a comprehensive report published Wednesday by Danish pension fund PKA together with four other European pension funds, reports Danish newspaper Politiken.

If countries are to carry out their ambition to keep global temperature increases within two-degrees Celsius increase relative to pre-industrial levels, then the demand for oil will decline. As will the interest of pension funds in investing in companies with billions in oil which proves difficult to sell.

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