Low-carbon transition might lead assets to lose their value. On May 9, 2019, Emanuele Campiglio, Assistant Professor at Vienna University of Economics and Business (WU), held the RFF-CMCC – EIEE weninar “Capital stranding cascades: The impact of decarbonisation on productive asset utilization” presenting a novel methodological framework to investigate the exposure of economic systems to the risk of physical capital stranding.
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As illustrated during the seminar, mining is among the sectors with the highest external asset stranding multipliers. The sectors most affected by capital stranding triggered by decarbonisation include electricity and gas, coke and refined petroleum products, basic metals and transportation. From these sectors, stranding would frequently cascade down to chemicals, metal products, motor vehicles water and waste services, wholesale and retail trade and public administration.