Investors Risk $2.3 Trillion of Stranded Fossil Fuel Assets

The transition to a low-carbon economy has the potential to leave assets worth $2.3 trillion stranded by the end of the next decade, according to a new analysis.

Oil, gas and coal reserves — as well as the infrastructure and investments underpinning fossil fuels — may “lose economic viability” before the end of their expected operational lifetimes, according to a report published on Thursday by the UK Sustainable Investment and Finance Association together with Transition Risk Exeter. UKSIF and TREX cite climate policies, technological changes and shifting market conditions as likely causes of the slump in value.