The coal divestment crowd have been running around arguing that there is a carbon bubble that isn’t priced in global stock markets. Recently the Australia Institute was in on the game:
To meet the internationally-agreed two degree global warming limit, fossil fuel businesses must leave in the ground two-thirds of the reserves currently on their books. Failure to incorporate this risk is causing inaccurate share valuations.
Sounds serious. Except for a small (well, okay, not so small problem).
So have a close look at the column entitled “Fraction of 2°C budget”. Got it? Yes. 85% of the 2°C budget is listed on the worlds stock markets. The rest of it is state owned. As in not listed on the markets. In other words, contrary to what our divestment friends are telling us, all listed carbon could be exploited, and then some, before their own 2°C budget is breached.