# Stranded Asset

*ESG & Sustainable Finance — Finicade finance glossary*

A stranded asset loses value before the end of its expected life because of regulation, technology or demand shifts — coal plants, unburnable reserves.

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.

**Also known as:** stranded assets, unburnable carbon

**Related terms:** [Transition Risk](https://finicade.com/glossary/transition-risk), [Carbon Price](https://finicade.com/glossary/carbon-price), [Impairment](https://finicade.com/glossary/impairment), [Transition Finance](https://finicade.com/glossary/transition-finance), [ESG](https://finicade.com/glossary/esg)

Source: https://finicade.com/glossary/stranded-asset