Solving for Climate Prof Alex Edmans: Does divestment from fossil fuels work?
18 snips
Sep 2, 2025 
Professor Alex Edmans, a finance expert from the London Business School, shares his skepticism about the effectiveness of divesting from fossil fuels. Instead, he argues that implementing a carbon tax is a far more effective climate solution. During the discussion, Edmans highlights the complexities of individual investment choices and the potential benefits of supporting companies transitioning to sustainable practices. The conversation also touches on the crucial roles that various stakeholders play in combating climate change and the need for pragmatic solutions.
AI Snips
Chapters
Books
Transcript
Episode notes
Divestment Often Fails To Starve Capital
- Selling your stocks doesn't remove capital from a company because someone else will buy the shares.
- Divestment can reduce engagement influence and may empower buyers who ignore climate concerns.
Financing Needs Careful Targeting
- Financing brown firms can enable them to decarbonise where it's most needed.
- Supporting green firms doesn't always add financing; it can merely substitute existing capital.
Prioritize Personal Consumption Choices
- Change high-impact personal consumption like flying and car use rather than relying on moving bank accounts.
- Collective lifestyle changes scale and produce real emissions reductions.
