100 Trillion Dollars “stranded assets”: How Incorrect CO2 Prices Cause Gigantic Industrial Graveyards

“This term essentially describes a capital sinking mechanism. In the old world – before the Paris Climate Agreement completed in 2015 – investments in fossil resources were long considered particularly attractive. As can be clearly seen, among other things, from the slump in the share prices of the major oil companies, such assets have lost their luster and above all their value in the balance sheet. According to estimates by Citibank, a valuation bubble of 100 trillion – not just billion – dollars, a huge “Carbon Bubble”, has already actually arisen in this context on the stock exchanges in 2015. Contrary to what was assumed at the moment of the investment decision, plants of the oil, coal and petrochemical industry that have already been built or are under construction will become permanently and massively unprofitable due to the inclusion of CO2 costs. This is already heralding industrial graveyards of unimaginable proportions.”

– Sonja Stuchtey and Martin R. Stuchtey in “The Big CO2 Bubble” – The Oil Age is Coming to an End – and with it Many Once Profitable Business Models…”, Guest Commentary in Handelsblatt, 19., 20., 21. February 2021, No. 35

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