About half of the world’s fossil fuel assets will be worthless by 2036 under a net zero transition, according to research.
Countries that are slow to decarbonise will suffer but early movers will profit; the study finds that renewables and freed-up investment will more than make up for the losses to the global economy.
It highlights the risk of producing far more oil and gas than required for future demand, which is estimated to leave $11tn-$14tn (£8.1tn-£10.3tn) in so-called stranded assets – infrastructure, property and investments where the value has fallen so steeply they must be written off.
So the question is, how will the world adapt to prevent such an economic crisis. We know that these assets on the books of oil companies are effectively worthless. This is the economic argument not to invest in new fossil infrastructure.