Article 3RKC3 'Carbon bubble' could spark global financial crisis, study warns

'Carbon bubble' could spark global financial crisis, study warns

by
Fiona Harvey Environment correspondent
from on (#3RKC3)

Advances in clean energy expected to cause a sudden drop in demand for fossil fuels, leaving companies with trillions in stranded assets

Plunging prices for renewable energy and rapidly increasing investment in low-carbon technologies could leave fossil fuel companies with trillions in stranded assets and spark a global financial crisis, a new study has found.

A sudden drop in demand for fossil fuels before 2035 is likely, according to the study, given the current global investments and economic advantages in a low-carbon transition.

Related: What is the carbon bubble and what will happen if it bursts?

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