Stranded assets a long-term risk for major fossil fuel exporters: Fitch ANI | Updated: Feb 19, 2021 12:15 IST
London [UK], February 19 (ANI): Fossil fuel exporters face a loss of GDP, government revenue and export receipts from the transition to a lower-carbon economy over the coming decades, Fitch Ratings has said in a new report.
For the most-exposed sovereigns and those that do not adequately prepare for it, climate change stranded-asset risk is likely to lead to rating downgrades as the effects become clearer, closer and more material.
The extent and speed of decline in demand for fossil fuels are uncertain. Excess potential global supply will weigh on prices, potentially compounding the loss from lower volumes, said the report titled Climate Change: Stranded Assets Are a Long-Term Risk for Some Sovereigns.