With oil prices around $50 per barrel, the IEA estimates that OPEC states have lost half a trillion dollars a year in revenues since the oil price fell from over $100 a barrel in 2011-2014 to current levels. The declining price of oil is also creating volatility in the stock market and significantly impacting the petro-economies of both Russia and Canada.
As reported by the Star, a new study from the Canadian Centre for Policy Alternatives indicates that fossil fuel holdings in Ontario's five largest pension funds lost a total of $2.4 billion. Here is their review of the amount of money lost due to falling oil and coal prices from June to December 2014:
- Ontario Teachers’ Pension Plan: $1.77 billion
- Ontario Municipal Employees Retirement System: $192 million
- Healthcare of Ontario Pension Plan: $53 million
- Ontario Pension Plan: $154 million
- Ontario Public Service Employees Union Pension Trust: $188 million
A Corporate Knights Capital report estimated that the CPPIB has lost $7 billion (US) in value since 2012 due to the decline in the values of carbon intensive industries. Bill & Melinda Gates Foundation Trust Endowment have lost $1.9 billion, and the University of Toronto pension and endowment fund lost $419 million.
More than 100 institutional investors representing $8 trillion in assets have signed the one-year-old Montreal Carbon Pledge. Those that took the pledge have committed to “measure, disclose and reduce portfolio carbon footprints.” Signatories include Addenda Capital, The Co-operators and the United Church.
“If they’re putting money into fossil-fuel stocks, it should be incumbent on managers and trustees to justify why they’re doing that,” said Marc Lee, a senior economist with Policy Alternatives.
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