Africa

Compensating Indebted Countries for Keeping Fossil Fuels in the Ground

Compensating Indebted Countries for Keeping Fossil Fuels in the Ground

Published: 5 January 2021

Fossil fuel development, in particular oil and gas, promised vast riches in the past. Today it is exposing fossil fuel producers and their creditors to a massive stranded asset risk. Technological disruption with the rapid cost-reduction of renewable energy and storage technologies, in conjunction with the inevitability of increased climate action, are at the root of unprecedented uncertainties over the future of the sector.