Introduction

There are various definitions of stranded assets that have been proposed or are used in different contexts. Stranded assets created by environment-related risk factors, including physical climate change impacts and societal and regulatory responses to climate change, have become increasingly prominent. Developments and innovations in the practice of analysing stranded asset risk can only achieve so much if they must operate in an institutional environment that is endemically short term. The policy response to the global financial crisis meant that financial regulation was in a state of flux, with new regulatory arrangements being drawn up and revised internationally. The one that caught imagination and prompted to consider the links between environmental factors destroying value and ultimately affecting financial stability was the creation of the Bank of England's Financial Policy Committee. The chapter also presents an overview of the key concepts discussed in this book.