If declining alternative energy prices are the hammer on fossil fuels, then the onset of climate change is the anvil. This week, two stories came up showing the world’s climate changing for the much worse.
First, Lake Mead dropped to it lowest levels ever. It is currently at 37% of it’s normal depth and fed by the already oversubscribed Colorado River…a river that is responsible for the drinking water of 40 million people.
Second, India experienced temperatures that broke 123.8F this week. A new record for a country that knows the meaning of hot weather. This NY Times story goes on to say, “Scientists say that if greenhouse gas emissions continue at a high pace, average global temperatures could rise by more than six degrees Fahrenheit by the end of the century”
What does this mean: The earlier pieces this week talked about improving green technologies to supplant fossil fuels in the energy fields. The increasing threat of climate change, caused by fossil fuel use, is the other reason they are a risky investment.
These weather events will only continue to occur at increasing frequency. Which will force governments to curtail and tax the use of fossil fuels. Both acts could hasten the drive for investors seek options for growth outside of the fossil fuel arena.