Not all gigajoules are created equal: 'Greening' the entire energy system is a fallacy within offsetting

Deep Dive into ESG - net zero

clock • 3 min read
Eoin Murray of Federated Hermes
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Eoin Murray of Federated Hermes

Declarations of transition plans to net zero at some distant point in time, whether at state or corporate level, appear to be all the rage.

Mark Carney's pronouncement that Brookfield Asset Management Inc was operating net zero, and subsequent walk-back, illustrates one of the continuing and deeply concerning fallacies that surrounds the concept of carbon offsetting. It presumes a simplicity that does not exist. And a falsehood that, should it continue to be perpetuated, could fatally undermine the world's path to true net zero. The fallacy is that renewables and non-renewables energy are on either side of some sort of weighing scale where one can cancel the other out. Liontrust's Michaelis: Our sustainable investing s...

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