Between two-thirds and four-fifths of known fossil fuel reserves have been deemed to be "unburnable carbon" that cannot safely be combusted without leading to catastrophic climate change.
A new study by CCPA economist Marc Lee and SFU graduate student Brock Ellis looks at the implications of unburnable carbon for the Canadian fossil fuel industry and in particular for financial markets and pension funds. The authors argue that Canada is experiencing a "carbon bubble" that must be strategically deflated in the move to a clean energy economy. The study estimates Canada's share of a global carbon budget and finds that, at least 78% of Canada’s proven oil, bitumen, gas, and coal reserves, and 89% of proven-plus-probable reserves would need to remain underground.
Read more about the “carbon bubble” and the authors' recommendations to green Canada’s financial markets in the report, Canada's Carbon Liabilities: The Implications of Stranded Fossil Fuel Assets for Financial Markets and Pension Funds.