Stranded Assets: The Ticking Financial Time Bomb of Unburnable Carbon and the Coming Energy Market Collapse - Softcover

Nabors, Shawn S.

 
9783565321636: Stranded Assets: The Ticking Financial Time Bomb of Unburnable Carbon and the Coming Energy Market Collapse

Synopsis

The global financial system operates on a very specific, unquestioned assumption: that the vast reserves of oil, coal, and gas owned by major energy corporations will eventually be extracted, sold, and burned. The multi-trillion-dollar valuations of these companies, and the pension funds invested in them, rely entirely on this future revenue. There is only one problem: to meet basic global climate targets, a majority of these reserves must legally remain in the ground forever. This impending reality creates the terrifying economic concept of "Stranded Assets." It is a massive carbon bubble built on unburnable fuel. When government regulations and renewable energy economics finally force the write-down of these fossil fuel reserves, the sudden loss of value will trigger a cascading financial shockwave on par with the 2008 subprime mortgage crisis. Wealth that currently underpins our stock markets will simply vanish. This rigorous macroeconomic analysis exposes the greatest mispricing of risk in modern history. It breaks down the corporate denial, the regulatory shifts, and the immense danger facing institutional investors who refuse to acknowledge the shift. Look past the short-term profits of the fossil fuel industry. Understand the mechanics of the carbon bubble and prepare for the seismic financial crash that will redefine the global energy market.

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