"Next year could see markets start to wake up to a proper carbon bubble."

Kevin Allison for Thomson Reuters: “Next year could see markets start to wake up to a proper carbon bubble: the inflated value of hydrocarbon-heavy corporates. Fossil fuel companies may already have found more coal, oil and gas than can safely be burnt without prompting damaging climate shocks. A 2011 report by Carbon Tracker, an environmental think-tank, found 745 giga-tonnes of carbon embedded in the proved reserves of the world’s biggest listed coal and petroleum companies.”
“….A final decision on TransCanada’s Keystone-XL pipeline, expected in early 2013, will test the new mood. If the Obama administration kills the controversial oil sands conduit, investors should start applying a steeper discount to expected cash flows from carbon-intensive fossil fuel deposits.”