Virus crisis could cause $25tn fossil fuel industry collapse

LONDON: The novel coronavirus disease (COVID-19) outbreak and lockdown crisis might lead to USD 25 trillion (£20tn) collapse in the fossil fuel industry with the acceleration of a terminal decline for the world’s most polluting companies, foreign media reported.

COVID crisis prompted people to stay indoors, thus the demands for fossils fuels such as petrol, diesel, etc have come down.

The value of the world’s fossil fuel reserves could fall by two-thirds, sooner than the industry expects, according to financial thinktank Carbon Tracker.

The collapse of the fossil fuel industry will lead to a threat to global financial stability as it reduces the market value of fossil fuel companies.