Since our inception we have conducted pioneering research on stranded assets and continue to undertake significant research on the topic.
A core part of this work is researching environment-related risks that can strand assets across different sectors, geographies, and asset classes; how such risks are emerging; how they might be interrelated or correlated; their materiality (in terms of scale, impact, timing, and likelihood); who will be affected; and what affected groups can do to pre-emptively manage these risks.
Growing from and related to this, is work on transition finance, which is the provision and use of financial products and services to support counterparties, such as companies, sovereigns, and individuals, realise alignment with environmental and social sustainability (Caldecott, 2020 - forthcoming).
Counterparties successfully transitioning towards sustainability is one critically important way to avoid future stranded assets. We are exploring how counterparties can do this, the role of finance and financial services in enabling transitions, and the reforms needed in policy and regulation to support a more rapid transition.
Research topics include:
- Financial products and services to support the transition
- Implications of stranded assets on corporate strategy
- Reforming the financial system to support the transition
- Measuring alignment with sustainability outcomes
- The future of different sectors particularly exposed to stranded assets
- Market design and competition policy
To find out more about our work on stranded assets and transition finance, contact Dr Ben Caldecott.
- Hickey, C., O'Brien, J., Caldecott, B., McInerney, C. and Ó Gallachóir, B. (2019) Can European electric utilities manage asset impairments arising from net zero carbon targets? Available at SSRN.
- Hickey, C., Deane, P., McInerney, C. and Ó Gallachóir, B. (2019) Is There a Future for the Gas Network in a Low Carbon Energy System? Energy Policy, 126: 480-493.
- Caldecott, B. (ed.) (2018) Stranded Assets and the Environment: Risk, Resilience and Opportunity. Routledge. 340 pp. ISBN 9781138120600.
- Caldecott, B. (ed.) (2018) Stranded Assets: Developments in Finance and Investment. Routledge. 174 pp. ISBN 9781138574236.