Stranded Asset Risk Trend 2026

Stranded asset risk refers to the likelihood that investments lose value before their expected lifespan ends, often due to regulatory shifts, technological disruption, or market changes—most notably in fossil fuels. Used by investors and policymakers, it guides portfolio diversification and climate stress tests. Ultimately, financial institutions, insurers, and sustainable businesses benefit by mitigating losses and aligning capital with future-proof, low-carbon opportunities.