Ownership of power plants stranded by climate mitigation

Abstract Existing fossil-fuel-burning power plants must be retired (or retrofitted with technology to capture and store CO 2 emissions) before the end of their operating lifespans to achieve the most ambitious international climate goals (around 2 °C). Abbreviated power-plant lifespans, costly retrofits and lost revenues to power-plant owners in turn represent stranded assets, namely investments that can no longer earn a viable return because of climate policies. Here we use detailed data of power plants worldwide to evaluate the scale of financial risks by region, generator type and corporate ownership. We find that of the 100 companies that own the most stranded assets by value, the very largest are state-owned and the top 25 companies cumulatively hold upwards of US$770 and US$224 billion in stranded assets under a 1.5 °C scenario and 2.0 °C, respectively. Our findings reveal the power-plant owners most exposed to financial risks linked to the shift away from fossil fuels, as well as the concentration of financial interests adverse to rapid decarbonization.