https://www.polity.org.za
Deepening Democracy through Access to Information
Home / Recommendations RSS ← Back
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

Stranded Assets and Renewables

Close

Embed Video

Stranded Assets and Renewables

Stranded Assets and Renewables

25th August 2017

ARTICLE ENQUIRY      SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

  • Stranded Assets and Renewables
    Download
    0.98 MB
Sponsored by

Assets like power plants can become “stranded” by unanticipated or premature write-downs, devaluation or conversion to liabilities. This will happen to some degree in the transition to a low-carbon economy. However delaying action to address climate change would result in significantly more severe asset stranding, according to this analysis by the International Renewable Energy Agency (IRENA). This raises concerns for investors and companies, as well as policy makers and regulators.

This paper examines the potential magnitude of asset stranding in the global energy sector due to a shift to renewables and energy efficiency that would be needed to fulfil the Paris Agreement. Governments, companies and financial institutions all face risk, with consequences along the whole investment chain in both mature and developing capital markets.

Advertisement

Early action on carbon-dioxide mitigation, however, would ultimately reduce asset stranding in upstream energy, power generation, and the industry and buildings sectors. In contrast, the value of energy assets stranded would be twice as high with delayed policy action, IRENA’s analysis shows. Developing countries, in particular, can reduce asset stranding – along with broader economic damage – by taking action sooner on energy decarbonisation.

Clearly, polluting assets should be stranded before they irreversibly alter the climate. Stranding such assets sooner, meanwhile, will cost countries less. The paper outlines high-level action areas for policy makers to consider.

Advertisement

Report by Irena

EMAIL THIS ARTICLE      SAVE THIS ARTICLE ARTICLE ENQUIRY

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now