Stranded Fossil Fuel Assets and the Carbon Bubble

In following the topic of economic bubbles, it’s worthwhile looking into what’s called the “Carbon Bubble.” The idea behind the Carbon Bubble has to do with stranded assets — assets that are on the books of a company but that can never be exploited for profit. This is potentially the case with companies that are in the business of extracting and exploiting fossil fuels — coal, oil, and gas. The problem is that such fuels are causing climate change and are thus becoming increasingly subject to regulation. It’s possible that a significant volume of fossil fuels now on the books of coal and oil companies will never come to the surface and will eventually have to be written off at massive loss.

This problem was well explained recently by Joel Makower at GreenBiz.com — see “Exxon, stranded assets and the new math.” Makower’s piece was prompted by an announcement that ExxonMobil, the U.S.’s largest energy company, will be releasing the first Carbon Asset Risk report by any such company. A press release from Arjuna Capital says that the forthcoming report “will provide investors with greater transparency into how ExxonMobil plans for a future where market forces and climate regulation makes at least some portion of its carbon reserves unburnable.”

ARB — 25 March 2014

 

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The Produce Box: Local Foods in the NC Triangle Region

The trend toward local foods is one of the movements that makes tremendous sense to me in the current emerging economic environment. Here in the Triangle region (Raleigh-Durham-Chapel Hill, North Carolina, USA), a local startup, The Produce Box, has been been making weekly deliveries of local foods for the past couple of years.

Boxing produce at the Lee family farmEach week during the harvest season, we receive a box of produce picked the previous day ($22 for a smaller box, $38 for a larger box) delivered automatically and paid online by credit card.

The foods we receive aren’t flawless, and there’s no promise that they are 100% legally organic. But they’re fresh and delicious and local. The Lee Farm, the main farm that supplies The Produce Box, doubled its acreage under cultivation from 50 to 100 acres in just the past year because of this venture.

Each week the box includes a newsletter from Produce Box owner Courtney Tellefsen. This week she included some interesting insights into how the Lees grown their produce:

Because of the unique nature of this new food system, where they are growing FOR US, they don’t feel the pressure to produce a completely unblemished, beautiful product. They know that we would much rather see a small blemish we can cut away than have our food saturated with pesticides. So they use less pesticides and incorporate such farming practices as growing in black plastic for weed control and irrigation, using a closed water source (no open wells, ponds, etc.) to reduce contamination possibilities and applying insectisoaps rather than pesticides when they can.

They are “thoughtful” about the way that they farm, and the way that they pack your fresh veggies. The produce that comes to you in the morning was picked the day before and packed that previous afternoon at the farm by the Lee’s and their helpers.

She also included this useful chart showing which foods are in season when in North Carolina throughout the year — click on the image to download a full-size PDF version:

Produce: What's in season in North Carolina

AB — 19 May 2010