When you buy stocks and shares, you are not buying the current or past success of a business. That profit is already spoken for and been allocated. The value of your stock or share is based on the belief of what that business might make in the future.
Many people now believe that fossil fuels have a limited future because of their harmful impact on climate change. This is reducing the value of fossil fuel company shares which is making people sell them even faster. This has a cumulative effect and is accelerating the move of money, in its billions, from fossil fuels into green energy.
The investment in green energy has created economies of scale and, on average, onshore wind is now cheaper than oil and gas. The tide is turning. All great news for the environment!
Levelized cost to produce electricity outside of Europe
- Onshore wind – $83 per MW-hr
- Coal- $84 per MW-hr
- Gas – $98 per MW-hr
Source : Bloomberg New Energy Finance
Find out more
- The strong economics of wind energy – from The Guardian
- Recession, retrenchment, revolution? Impact of low crude prices on oil powers – from The Guardian
- Renewable Energy Soars Amid Plummeting Fossil Fuel Prices – from Ecowatch