Institute for Energy Economics and Financial Analysis (IEEFA)

The Institute for Energy Economics and Financial Analysis’ team of global experts study energy markets, trends, and policies. IEEFA’s mission is to speed up the change to a diverse, sustainable and profitable energy economy.  Their work has produced over 500 in-depth evidence-based reports -  providing climate activists with an invaluable resource. 

Report: Two Economies Collide: Competition, Conflict and the Financial Case for Fossil Fuel Divestment (Oct. 2022)

Key Findings: The coal, oil and gas sectors have lost their financial rationale.

The report describes the forces which are undermining the once-mighty industry and which are instead supporting sustainable alternatives;  all while rapid climate change is causing an increased number and intensity of destructive weather events.  The authors warn investors to ‘... move away from fossil fuels because the coal, oil and gas sectors are confronted with competitive pressures that they are ill-prepared to navigate.’

Passive Investing in a Warming World (Feb. 2024)

Key Findings: Fossil fuels, once a primary driver of index returns and economic growth, are becoming an increasingly risky and speculative part of passive equity portfolios.

Notwithstanding a few high-profit quarters due to external factors like the war on Ukraine, the overall impact has been fleeting and has not reversed a decade of underperformance.  As markets move in the direction of a lower-carbon future, index funds that avoid fossil fuels give investors a way to respond to the risks and rewards of a warming world.