Stranded assets, companies threatened by the fight against climate change

By: Jean-Pierre Boris Follow

Oil companies, coal mines, shipping companies, electricity producers, banks, insurance companies, long is the list of companies whose future is threatened by the fight against climate change.

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The world is barricading itself to cope with the coronavirus epidemic. Stock markets are collapsing, borders are closing, airports are deserted. But if the world barricades itself, the earth still turns. And other phenomena are at work.

With its huge oil reserves, Saudi Arabia launched an oil war, causing world prices to plummet. But, oil companies have to face another difficulty, born for them from a world struggling against global warming.

Because who says fight against global warming says less oil, but also less coal, less cars. And enormous problems for all these companies which would see their raison d'être disappear gradually. These companies threatened by the fight against global warming are the subject of this broadcast. Economists have given them a mysterious name which they will explain to us later. These threatened businesses are stranded assets. What sectors are involved, what is the nature and severity of the threat they face and what impact on the stability of our economic and financial systems? These are the questions asked during this program, with three guests:

- Laurence Scialom is professor of economics at Paris X Nanterre University. She is responsible for the “financial regulation” pole of the Think Tank Terra Nova, member of the NGO Finance Watch and of the Scientific Council of the Nicolas Hulot foundation for nature and man. She belongs to the scientific council of the Prudential Authority for Control and Regulation, the body which supervises banks and insurance companies in France. His latest book is " The fascination of the ogre ". It is published by Éditions Fayard.

- Nicolas Berghmans is a researcher in climate and energy policies at IDDRI , an independent think tank that works on sustainable development and international relations. His work concerns the integration of renewable energies into the electricity system and the governance of the energy markets.

- Jérôme Deyris , economist, is preparing a doctoral thesis on stranded assets. The provisional title of this thesis: " Financial markets facing stranded assets ".

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• Businesses
• Climate change
• Energies

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