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Study warns of $557 trillion in stranded assets by 2050 if fossil fuel investments continue

Continued investment in carbon-intensive industries will drastically increase the amount of "stranded assets" as the world moves to net-zero emissions, researchers warn.

The study assesses how much capital—the value of physical assets like buildings and, uniquely in this study, the value of workers—could be stranded (losing its value) if the world reaches net zero emissions in 2050.

The paper, published in the journal Environmental Research: Climate is titled "Stranded human and produced capital in a net-zero transition."

Stranded assets could include a worker losing their job and future income as their industry declines, or a coal power station losing value as renewables take over.

The study—by Exeter and Lancaster universities—compares two scenarios to investigate how delaying the transition could affect the total capital value at risk accumulated by 2050: one where the world completely stopped investing in carbon-intensive industries in 2020, and another where this is delayed to 2030.

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