The world could be heading for a major economic crisis as stock markets inflate an investment bubble in fossil fuels to the tune of trillions of dollars, according to leading economists. The so-called "carbon bubble" is the result of an over-valuation of oil, coal, and gas reserves held by fossil fuel companies. According to a recent report published by the London School of Economics and the think tank Carbon Tracker Initiative, at least two-thirds of these reserves will have to remain underground if the world is to meet existing internationally agreed targets to avoid the threshold for "dangerous" climate change. If the agreements hold, these reserves will be in effect unburnable and so worthless – leading to massive market losses. The stock markets are currently betting on countries' inaction on climate change. Read more »
