EVA (see Damodaran NYU definitions & dataset) = shareholder value. This is from some work my colleagues and I are doing. YES, Bill, to a windfall profits tax. carbon tax, or similar. For non-finance geeks...the numbers below are a Category 5 profit storm:.
2021-23 all global listed non-financial sectors and highlighting 3 upstream fossil sectors - Integrated O&G - O&G E&P and Coal:
3 years, 3 sectors, $3.4 trillion of EVA, vs $4.8 trillion of RE investment. So fossil producer economic profit equaled 70% of renewable investment in the same timeframe.
20 to 30% average returns on capital (ROC rather than ROE) for fossil sectors vs 11% for all global non-financial sectors. Not an easy faucet to shut off.
My hunch is that announcing by ye2026 - mandatory ICE and coal plant phaseout - with both gone by 2035 - via pan-OECD (Senate approved) treaty - can facilitate long-overdue climate re-balancing by global markets. Any later (on anything) = mitigation short squeeze in markets + climate forcing calamity for tipping points.
EVA (see Damodaran NYU definitions & dataset) = shareholder value. This is from some work my colleagues and I are doing. YES, Bill, to a windfall profits tax. carbon tax, or similar. For non-finance geeks...the numbers below are a Category 5 profit storm:.
2021-23 all global listed non-financial sectors and highlighting 3 upstream fossil sectors - Integrated O&G - O&G E&P and Coal:
3 years, 3 sectors, $3.4 trillion of EVA, vs $4.8 trillion of RE investment. So fossil producer economic profit equaled 70% of renewable investment in the same timeframe.
20 to 30% average returns on capital (ROC rather than ROE) for fossil sectors vs 11% for all global non-financial sectors. Not an easy faucet to shut off.
My hunch is that announcing by ye2026 - mandatory ICE and coal plant phaseout - with both gone by 2035 - via pan-OECD (Senate approved) treaty - can facilitate long-overdue climate re-balancing by global markets. Any later (on anything) = mitigation short squeeze in markets + climate forcing calamity for tipping points.
Is it just me, or did we skip chapters 61 & 62?
This piece proves, again, that thinking beyond the neo liberal marage is not only necessary, but it's the *only* path forward.