ABSTRACT
Fossil fuels account for around two-thirds of anthropogenic greenhouse gases emissions and four-fifths of primary energy supply. This chapter explores the implications of economic trend for the value of fossil fuel assets, notably the reserves and infrastructure built to extract these reserves, as well as the companies and stakeholders owning these reserves. It reviews the relative exposure of each fossil fuel to 'transition trends' and also explores the research around the future of fossil fuel production. The chapter discusses the implications for the economic stranding of assets, describes the likely exposure of various companies to these risks and examines the potential implications for financial markets. Fossil fuels are created through the anaerobic transformation of biological substances. In the context of the transition to a low-carbon economy, three types of fossil fuels are of particular note – one solid, one liquid, and one gas. Fossil fuels are created through the anaerobic transformation of biological substances.
