$300bn of fossil fuel assets risk being stranded by 2035, says IEA.

Environmental Finance: “The International Energy Agency (IEA) has warned investors that “around $300 billion in fossil fuel assets [could be] left stranded by stronger climate policies” by 2035.”
“The warning quantifies an earlier IEA statement on the risk of some existing fossil fuel reserves being rendered ‘unburnable’ if governments tighten curbs on greenhouse gas emissions in order to restrict any increase in average global temperatures to 20C above pre-industrial times.  It contradicts recent statements by several oil majors rejecting the suggestion that such policies could affect existing reserves.
“Some investment in fossil fuel-based energy assets, as a result of changes brought about by climate policy, may not be able to earn an economic return prior to the end of their economic life and risk becoming stranded assets,” the IEA said in a statement accompanying its latest report World Energy Investment Outlook.
The report says significantly more investment in energy supply and energy efficiency is needed over the next 20 years. Current annual investment in energy supply needs to rise to about $2 trillion/year from $1.6 trillion/year now, it says, while annual spending on energy efficiency needs to rise more than four-fold to $550 billion from about $130 billion.
These figures are based on current estimates of future energy demand and policies that are already in place or announced. If tougher policies are agreed, consistent with a 20C temperature rise, spending on energy efficiency would need to exceed $1 trillion/year by 2035, the IEA says.”