Letter to the editor: The free market has spoken, and clean energy has won
I agree with the letter “Climate change threatens our civilization,” but I believe we are about to have a climate change solution imposed on us by capitalism. The free market has already spoken, and clean energy has won. Fossil fuels are dead.
Solar and wind are now cheaper, with energy storage and without subsidies, than any fossil fuel worldwide and will continue to drop in price until they are “effectively free” by 2030.
That’s why $12 trillion was divested from fossil fuels last year alone, with another $37 trillion pledged to divestment. BlackRock, the world’s biggest and most influential investment firm with $7 trillion under management, divested this January after losing more than $90 billion over a decade in its fossil fuel investments as they continued to disappoint during a roaring bull market.
Big institutional investors are fleeing because fossil fuel mega-corporations will be left with trillions in “stranded assets” they’re deep in debt for but will never be able to sell because solar/wind are so much cheaper.
“Did we just witness the beginning of the end of ‘Big Oil?’” asked CNBC in September 2019 as Exxon Mobil dropped out of the S&P 500’s top 10 stocks for the first time in nine decades. Business media is full of headlines like “U.S. Shale is Doomed no Matter What They Do” (priceofoil.com). Coal is already going bankrupt. The same thing is happening worldwide.
Electric vehicles will cost less than any gas-powered vehicle by 2022 and then continue to get cheaper, about 13% annually. They can go 600-plus miles per charge, and their batteries last 500,000 miles. Oil would have to be under $10 a barrel to compete with the cost of running a vehicle on electricity.
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