Understanding the Scale of the Stranded Assets Risk in the Shipping Industry
Aligning the shipping industry with a 1.5°C temperature increase trajectory requires a dramatic decrease in shipping emissions on the one side, and of the shipping demand for fossil fuels commodities on the other side. Those two requirements lead respectively to stranded assets supply-side risk for carbon intensive ships ; and stranded assets demand-side risk for fossil fuels carriers. This paper aims at providing an understanding the scale of the threat of stranded assets in the international shipping industry. To do so a quantitative assessment of the committed emissions and committed oil shipping work supply carried by the existing and ordered fleet is conducted. We find a large supply-side risk, with more than 40% of committed emissions in excess of the shipping carbon budget. Demand-side risk is more contained with only 16% of the oil shipping supply exceeding the oil shipping demand aligned with a 1.5°C temperature increase target
Year of publication: |
[2022]
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Authors: | Fricaudet, Marie ; Rehmatulla, Nishatabbas ; Smith, Tristan |
Publisher: |
[S.l.] : SSRN |
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