Wednesday 18 March 2009

Shell drop renewables - another reason for pricing carbon


Economists predictions come true about investment in renewable energy falling with lower oil prices. Shell has just announced it is dropping renewables from its portfolio as it is not profitable.

Environmental groups are raging, but the reason for this is not corporate malice, but a lack of a sufficiently high price for carbon to interest investors. As their CEO Linda Cook says,

"If there aren't investment opportunities which compete with other projects we won't put money into it. We are businessmen and women. If there were renewables [which made money] we would put money into it."

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