BACKGROUND 
As the world is moving towards a low carbon economy, the extraction, production and consumption of fossil fuels will need to dramatically decrease. However, despite the increasing calls for the redirection of capital from fossil fuels, we do not see an imminent decline of the industry. The commitments to limit and decrease fossil fuel consumption are not yet fully reflected in the value of the companies and their assets, leading to fears of overvaluation and systemic risks. With growing pressures from new regulations and global climate targets, these non-sustainable assets represent a significant risk of a sudden loss of financial value, thus becoming so-called “stranded assets” which no longer earn a return. Avoiding investments into these assets will be a key aspect of the green transition process, as it ensures that people’s finances, such as pensions or long-term investments, are not lost due to an investment strategy that creates a ‘lock-in” effect.  

EVENT AIM: 
The event will aim to contribute to the discussion about the rising risk of investing into sectors and assets that are not aligned with policy, economic and financial trends. The webinar will showcase insights from Carbon Tracker’s decades’ long work on stranded assets and carbon bubbles, helping government representatives and decision-makers access knowledge on the transition process to a low carbon economy.  

Carbon Tracker is a world-leading organisation in researching impact of climate change on financial markets, which first introduced the concept of stranded assets to warn about the implications of not adjusting investment in line with the emissions trajectories required to limit global warming. 

Format: 
Online event on Zoom. A closed-door, invitation only webinar with an interactive Q&A 

QUESTIONS: 

• How do assets become stranded? 

• How to avoid ‘lock-in’ and stranded asset risk? What policies are most effective? What are the first steps? 

• What are the latest developments in government thinking about avoiding stranded assets?  

SPEAKERS 

The webinar will be delivered by Carbon Tracker experts with support from the ISFC, which will take care of all logistics, communications, invites, etc.