Economists warn carbon bubble could lead to global economic crisis

Economists warned of a potential major economic crisis worldwide as stock markets inflate the value of fossil fuels that may have to remain buried forever, reports The Guardian.

The overvaluation of oil, coal and gas reserves held by fossil fuel companies will create a "carbon bubble" as 66% of these reserves will never be used if the world is to meet the internationally agreed climate change targets, according to a report by thinktank Stern and Carbon Tracker. Stock markets are betting on countries' inaction on climate change and almost all investors and regulators are failing to address this risk.

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