Stranded Assets

Bloomberg New Energy Finance, priced the fossil fuel industry at,
. . . $5 trillion (although the drop in oil prices means this has since fallen).

HSBC, the Global Research division of,
. . . Britain’s multinational banking and financial services company,
. . . says increasing risk of “stranded assets,” in the fossil fuel industry.

The biggest threat to investors' cash, comes from oil sands.
. . . This is because it combines a high break even price,
. . . . . . with a particularly high carbon footprint.

Coal, is the most susceptible to climate and environmental regulation, and
. . . they are typically the oldest, least-efficient (using the most fuel & water).

Indian and Chinese power stations, are most at risk from new regulation,
. . . due to water scarcity and poor air quality in these countries.

The following have all made moves to divest:
. . . . . . Prince Charles of England,
. . . . . . Sainsbury family,
. . . . . . National Trust,
. . . . . . Church of England, and
. . . . . . SAOS, University of London.

However, the number and value of fossil fuel industries,
. . . that are publicly listed, is relatively small in comparison,
. . . to those owned, and funded by states, such as Saudi Aramco.
This puts a structural limit, on how hard the
. . . divestment movement can strike at the fossil fuel industry.

04-30-2015 Source:  Stranded   Assets