Skip to main content
Log in

Fossil-fuel stranded asset risks held by individuals in OECD countries and non-OECD governments

  • Research Briefing
  • Published:

From Nature Climate Change

View current issue Submit your manuscript

A model based on plausible changes in expectations of future oil and gas demand identifies the ultimate financial owners of potential stranded assets to be predominantly OECD-based individual investors (through pension funds and shareholdings) and governments of non-OECD countries.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1: Ownership chain of stranded assets.

References

  1. Mercure, J.-F. et al. Reframing incentives for climate policy action. Nat. Energy 6, 1133–1143 (2021). This article models broader macroeconomic effects of the energy transition using the same scenario assumptions as the present paper.

    Article  Google Scholar 

  2. Ansari, D. & Holz, F. Between stranded assets and green transformation: fossil-fuel-producing developing countries towards 2055. World Dev. 130, 104947 (2020). This article evaluates and discusses the high burden that climate mitigation places on developing countries that are fossil-fuel exporters.

    Article  Google Scholar 

  3. Sen, S. & von Schickfus, M.-T. Climate policy, stranded assets, and investors’ expectations. J. Environ. Econ. Manage. 100, 102277 (2020). This study finds that investors expect government bailouts when making investment decisions (the case study being the German coal sector).

    Article  Google Scholar 

  4. Battiston, S., Puliga, M., Kaushik, R., Tasca, P. & Caldarelli, G. DebtRank: too central to fail? Financial networks, the FED and systemic risk. Sci. Rep. 2, 541 (2012). This study models the network of debt exposure between US banks and shows that even moderate economic shocks can risk the default of systemically important banks.

    Article  CAS  Google Scholar 

  5. Semieniuk, G., Campiglio, E., Mercure, J.-F., Volz, U. & Edwards, N. R. Low-carbon transition risks for finance. WIREs Clim. Change 12, e678 (2021). This article reviews and categorizes the various channels (such as stranded assets) through which climate change mitigation can impact the financial system.

    Article  Google Scholar 

Download references

Additional information

Publisher’s note Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

This is a summary of: Semieniuk, G. et al. Stranded fossil-fuel assets translate to major losses for investors in advanced economies. Nat. Clim. Change https://doi.org/10.1038/s41558-022-01356-y (2022).

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Fossil-fuel stranded asset risks held by individuals in OECD countries and non-OECD governments. Nat. Clim. Chang. 12, 510–511 (2022). https://doi.org/10.1038/s41558-022-01373-x

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1038/s41558-022-01373-x

  • Springer Nature Limited

Navigation