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oil, gas, and coal companies, and "carbon-intensive industries such as steel, aluminum, cement, plastics, and greenhouse horticulture". More broadly, countries that rely on fossil fuel exports and workers with technology-specific skills can be thought of in terms of stranded assets. According to the
Stranded Assets Programme at the
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has gained significant prominence in environmental and climate change discourse, where the focus has been on how environment-related factors (such as climate change) could strand assets in different sectors. The term "climate-related asset stranding" is often used in this context. This will affect
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defines stranded assets as "those investments which are made but which, at some time prior to the end of their economic life (as assumed at the investment decision point), are no longer able to generate an economic return, as a result of changes in the market and regulatory environment."
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65:) which seek to ensure that an entity's assets are not carried at more than their recoverable amount. In this context, stranded assets are also defined as an asset that has become obsolete or
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is expected to cause a significant increase in stranded assets for carbon-intensive industries and investors, with a potential ripple effect throughout the world economy.
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38:' of economic growth, transformation and innovation; as such they pose risks to individuals and firms and may have systemic implications.
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represents the existing investments in infrastructure for the incumbent utility that may become redundant in a competitive environment.
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136:(e.g. carbon liability) and changing statutory interpretations (e.g. fiduciary duty, disclosure requirements)
489:"Between stranded assets and green transformation: Fossil-fuel-producing developing countries towards 2055"
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is one popular example of how an environment-related risk factor could create stranded assets.
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34:". Stranded assets can be caused by a variety of factors and are a phenomenon inherent in the '
187:: internal carbon taxes are levied by companies to reduce climate change-related risk exposure
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falling clean-technology costs (e.g. solar photovoltaics, onshore wind, electric vehicles)
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Background
Briefing, UNEP Inquiry into the Design of a Sustainable Financial System
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311:"Now is the time to prepare for the economic shocks of battling climate change"
246:. Smith School of Enterprise and the Environment. 25 March 2014. Archived from
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In discussions of electric power generation deregulation, the related term
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280:, United Nations Environment Programme, June 2014, archived from
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69:, but must be recorded on the balance sheet as a loss of profit.
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364:"Stranded Assets in the Transition to a Carbon-Free Economy"
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WEO Special Report 2013: Redrawing the Energy
Climate Map
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van der Ploeg, Frederick; Rezai, Armon (6 October 2020).
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181:: used by companies to reduce their carbon emissions
26:that have suffered from unanticipated or premature
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140:In the context of upstream energy production, the
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94:environmental challenges (e.g. climate change,
105:(e.g. shale-gas abundance, phosphate scarcity)
88:Smith School of Enterprise and the Environment
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169:Recycling concrete of abandoned buildings
487:Ansari, Dawud; Holz, Franziska (2020).
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101:changing resource landscapes including
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16:Former physical asset, now a liability
438:. Business Dictionary. Archived from
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544:, IEA, 10 June 2013, archived from
368:Annual Review of Resource Economics
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45:The term is important to financial
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309:Brown, Eryn (30 September 2021).
108:new government regulations (e.g.
30:, devaluations or conversion to
73:Climate-related asset stranding
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505:10.1016/j.worlddev.2020.104947
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130:(e.g. certification schemes)
122:evolving social norms (e.g.
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244:"Stranded Assets Programme"
206:Economics of climate change
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142:International Energy Agency
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573:Stranded Assets Programme
466:Carbon Tracker Initiative
324:10.1146/knowable-093021-1
201:Environmental stewardship
57:has been converted to a
582:. University of Oxford.
416:. Deloitte. 9 July 2014
211:Ghost town repopulation
124:fossil fuel divestment
196:Disruptive innovation
607:Technological change
84:University of Oxford
36:creative destruction
462:"Unburnable Carbon"
578:2017-10-26 at the
128:consumer behaviour
103:resource depletion
49:in order to avoid
493:World Development
315:Knowable Magazine
179:Carbon offsetting
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588:. Carbon Tracker
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216:Leapfrogging
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32:liabilities
28:write-downs
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338:21 January
291:2014-07-09
227:References
185:Carbon tax
134:litigation
523:216314404
400:1941-1340
333:244242414
77:The term
59:liability
53:after an
576:Archived
446:11 April
414:"IAS 16"
254:11 April
163:See also
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63:IAS 16
24:assets
602:Asset
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519:S2CID
329:S2CID
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55:asset
22:are "
557:2014
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396:ISSN
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