Carbon caps may pose risk to projects

Up to $2.2 trillion in oil, gas and coal projects are at risk if measures to cut carbon emissions are implemented following the UN’s Paris climate summit that begins next week, a new report says.

The report, authored by the non-profit think tank Carbon Tracker Initiative, said high-investment oil and gas projects account for most of the developments at risk.

It singled out Shell and Mexico’s Pemex as poised to see around $77 billion in stranded projects, while ExxonMobil could face $73 billion in unneeded developments.

Shell has criticised previous reports from the think tank, pointing out that natural decline in oil and gas production will necessitate new investments.

ExxonMobil CEO Rex Tillerson said in October that carbon-based fuels would be needed to meet 75 percent of global energy demand for another 30 years.

The 2015 United Nations Climate Change Conference begins on November 30. Participants may agree on capping carbon emissions to ensure global temperatures do not rise beyond 2 degrees Celsius.