A stranded asset was valuable yesterday, but is worthless today.
The carbon budget is how much fossil fuel can be burned without exceeding the Paris Agreement target of a 1.5°C increase in global warming.
Scientists have determined what fossil fuel reserves can be burned within the carbon budget.
Fossil fuel reserves in excess of the carbon budget will become stranded assets. Their write-off cost will be trillions of US dollars, but the impact of declaring them stranded assets will be less than 1% of global GDP because there will be winners and losers.
The USA, Canada, Australia, and Russia depend on fossil fuel exports to sustain their economies.
They will experience business failures, job losses, and recession.
The Chinese, European, and Japanese economies will boom because they have invested in renewable energy.
They will become global suppliers of renewable energy technologies.
How did Canada bungle its energy resources so irresponsibly?
Robert M. Macrae
Environmental Technology Instructor