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ESG & Sustainable Finance

Stranded Asset

Also called: stranded assets, unburnable carbon

A stranded asset is one that loses value before the end of its expected life because of regulation, technology or demand shifts — coal plants, oil reserves that can't be burned within a carbon budget, buildings failing new efficiency rules. It's a financial risk rather than an ethical claim, and it's why reserve valuations and long-lived infrastructure assets attract scrutiny in climate scenario analysis.

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