Oil reserves top Investors look at carbon cost for oil reserves

Global Pensions

NORTH AMERICA – Oil companies should be forced to factor in the carbon cost of extracting future reserves when reporting, according to a letter delivered to the Securities and Exchange Commission (SEC).

The letter, signed by some 19 investors, including the US$232bn California Public Employees’ Retirement System (CalPERS) and the $160bn California State Teachers’ Retirement System, and supported by F&C, argued oil and gas companies should be forced to take into account the resources required to extract barrels when accounting for future reserves.

But shouldn't wind power companies also be forced to report the complete carbon cost of installing and maintaining wind turbines and associated transmission lines, as well as the carbon cost of running the fossil-fueled plants that are necessary to keep the lights on?