Moving to a low-carbon economy: the impact of policy pathways on fossil fuel asset values
A low-carbon energy system consistent with avoiding the most damaging effects of climate change could free up trillions of dollars over the next 20 years to invest in better economic growth. The report, “Moving to a Low Carbon Economy: The Impact of Different Policy Pathways on Fossil Fuel Asset Values,” focuses on the risk of losses in the financial value of existing fossil fuel assets (so called “asset stranding”). A loss in assets’ value is critical because it constrains governments and businesses’ ability to borrow against them to finance growth and investment, including investment in a low-carbon transition.