In early June, G7 leaders committed their countries to reducing carbon emissions by 2050 and eliminating them by 2100. Even before the G7 announcement in Germany, there had been concerns expressed over how carbon reductions might impact investors in energy and energy-related companies. If governments legislate reductions in global carbon emissions, the fear is that oil, gas and coal consumption would decline, resulting in capitalized fossil fuel reserves that will never be extracted. These potential surpluses are referred to as stranded carbon assets.
