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Stranded Assets and Transition Finance

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.

Recent publications: