demandpeak in 2020, no need forcontinued growth$1.4tn at risk

Oil No newmines required

coal

$220bn at risk

Growth inwill disappoint,esp. capital-intensive LNG

gas

$520bn at risk

Companies risk wasting up to

globally in the next decade$2.2 trillion

The stranded assetsdanger zone

Between of coal, oil and gas reservesof publicly listed companies areif the world is to have a chanceof not exceeding global warming of 2°C.

unburnable60-80%

Our seminal analysis has shown that the coal, oil and gasin the ground far exceeds the remaining2˚C carbon budget to 2050.

Carbon Tracker has allocated to fossil fuel companies a carbon budget to2050 with 80% likelihood of staying below the 2˚C threshold.

Unburnable Carbon report, 2013

The danger zone map: major regions forunneeded capex to 2025 and related CO2 to 2035under the 2˚C scenario.

Danger Zone report, Nov 2015

Carbon Bubble & Stranded Assets

Carbon Tracker is an independent non profit financial think tank aimed at enabling a climate secure global energymarket by aligning the capital markets with climate reality.

Initiative

arbon Tracker

More info at www.carbontracker.org - @carbonbubble

Of all the recent ideas climate change campaignershave come up with to convince the world to do more to curb

global warming, none has been as potent asthe concept of stranded fossil fuel assets.

Financial Times, September 2015

Beside climate policy reform,energy models need to consider thedisruptive impact of transformationaltechnologies.

The energy sectoris missing potentialdemand destruction

And this could lead to the creation of stranded assets

EVs account for approximately 35% of the road transport market by 2035. This growth trajectory sees EVs displace approximately two million barrels of oil per

day (mbd) in 2025 and 25mbd in 2050.

Expect the Unexpected report, Feb 2017

Major financial and political institutions have integratedCarbon Tracker’s analysis to make financial decisions

through the investment chain.

Mark Carney’s speech on breaking the tragedyof the horizons marked a turning point amongstfinancial regulators, with a major centralbanker going on the record to acknowledgethe Financial Stability Board needed tolook at this issue, and creating the taskforceon climate risk disclosure.

HSBC and Citigroup borrowed from CarbonTracker’s arguments to advise investors tomanage the increasing stranded asset riskassociated with fossil fuel assets.

The divestment movement, inspired by the‘carbon bubble’ idea, has spread worldwideat unprecedented speed. In December 2015over 500 institutions worth $3.4 trillion hadcommitted to divest from fossil fuels.

The insurance company Axa sold off $500million of coal assets based on CarbonTracker’s analysis.

The UK Environment Agency PensionFund used our analysis to align its investmentapproach with a 2˚C scenario.

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More info at www.carbontracker.org - @carbonbubble