“Carbon Tracker has long warned of the risk of investing in future stranded assets; i.e., assets that fail to generate the returns expected when sanctioned. The data evidence some level of risk averse behavior by industry over the past decade, yet some are advocating that industry returns to its old ways; this could be a mistake.”
[COMMENTARY] Fossil-fuel energy stocks have been doing well in recent months as fossil-fuel prices rise and fossil-fuel companies begin to invest more in production and distribution. Carbon Tracker says both investors and fossil-fuel companies risk big future losses.
Avoiding Stranded Assets: risk aversion in oil development, by Mark Fulton, Paul Spedding and Mike Coffin, September 15, 2023, Carbon Tracker, UK.