Global supply disruptions from the war involving Iran have spiked crude and LNG prices, generating tens of billions in extra revenue for oil producers in Canada. However, ‘Canadian’ oil producers are largely owned by foreign companies so much of this war-related windfall leaves the country. And the short-term geopolitical price spikes do not justify capital-intensive fossil fuel infrastructure. Markets are expected to re-balance, and global transitions to renewable energy will structurally erode long-term export demand.

Research also indicates that there is either an economic benefit, or at least no adverse impact from divesting of fossil fuels in your portfolio.