Stranded asset

{{Short description|Former physical asset, now a liability}}

{{Short description|Former physical asset, now a liability}}

{{Financial risk types}}

'''Stranded assets''' are "[[asset]]s that have suffered from unanticipated or premature [[Revaluation of fixed assets|write-downs]], devaluations or conversion to [[liability (financial accounting)|liabilities]]".{{cite web | url=http://www.smithschool.ox.ac.uk/research/stranded-assets/ | title=Stranded Assets Programme | publisher=Smith School of Enterprise and the Environment | date=25 March 2014 | access-date=11 April 2014 | archive-url=https://web.archive.org/web/20140327230917/http://www.smithschool.ox.ac.uk/research/stranded-assets/ | archive-date=27 March 2014 }} Stranded assets can be caused by a variety of factors and are a phenomenon inherent in the '[[creative destruction]]' of economic growth, transformation and innovation; as such they pose risks to individuals and firms and may have systemic implications.{{Citation |title=Background Briefing, UNEP Inquiry into the Design of a Sustainable Financial System |date=June 2014 |url=http://www.unep.org/greeneconomy/financialinquiry/Portals/50215/Inquiry%20Background%20Briefing%20Extended%20June%202014%20low%20res.pdf |publisher=United Nations Environment Programme |access-date=2014-07-09 |archive-date=2014-10-06 |archive-url=https://web.archive.org/web/20141006083645/http://www.unep.org/greeneconomy/financialinquiry/Portals/50215/Inquiry%20Background%20Briefing%20Extended%20June%202014%20low%20res.pdf }} [[Climate change]] is expected to cause a significant increase in stranded assets for carbon-intensive industries and investors, with a potential ripple effect throughout the world economy.

'''Stranded assets''' are "[[asset]]s that have suffered from unanticipated or premature [[Revaluation of fixed assets|write-downs]], devaluations or conversion to [[liability (financial accounting)|liabilities]]".{{cite web | url=http://www.smithschool.ox.ac.uk/research/stranded-assets/ | title=Stranded Assets Programme | publisher=Smith School of Enterprise and the Environment | date=25 March 2014 | access-date=11 April 2014 | archive-url=https://web.archive.org/web/20140327230917/http://www.smithschool.ox.ac.uk/research/stranded-assets/ | archive-date=27 March 2014 }} Stranded assets can be caused by a variety of factors and are a phenomenon inherent in the '[[creative destruction]]' of economic growth, transformation and innovation; as such they pose risks to individuals and firms and may have systemic implications.{{Citation |title=Background Briefing, UNEP Inquiry into the Design of a Sustainable Financial System |date=June 2014 |url=http://www.unep.org/greeneconomy/financialinquiry/Portals/50215/Inquiry%20Background%20Briefing%20Extended%20June%202014%20low%20res.pdf |publisher=United Nations Environment Programme |access-date=2014-07-09 |archive-date=2014-10-06 |archive-url=https://web.archive.org/web/20141006083645/http://www.unep.org/greeneconomy/financialinquiry/Portals/50215/Inquiry%20Background%20Briefing%20Extended%20June%202014%20low%20res.pdf }} [[Climate change]] is expected to cause a significant increase in stranded assets for carbon-intensive industries and investors, with a potential ripple effect throughout the world economy.