4.2.3Active indicatorStranded Assets from the Energy Transition
4.1The economic impact of climate change and its mitigation
4.2The transition to net zero carbon, health-supporting economies
4.3Financial transitions for a healthy future
Indicator 4.2.3 · Economics
Stranded Assets from the Energy Transition
Continued investment in fossil fuel infrastructure can increase exposure to health-harming air pollution and exacerbate the health harms of climate change. Additionally, continued fossil fuel investment increases the risk of assets becoming stranded as energy production shifts towards renewables, leading to financial losses as assets close before the end of their expected economic life. This indicator tracks the value of fossil fuel assets that have already become stranded, and tracks the change in those expected to become stranded in a Paris-Agreement compatible pathway as coal investments continue.
Headline finding
Between 2016 and 2025, realised stranded assets from early retirements of coal-fired power plants amounted to at least US$63.3 million across 35 countries.
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Figure 1
Stranded Coal-Fired Power Generation Assets
Value of stranded coal-fired power generation assets by country or Human Development Index (HDI) group, shown as assets effectively stranded between 2016 and 2025, and projected stranded assets for 2026 to 2035 under a 1.5°C pathway. Coal-fired assets are considered stranded when they cease operating before the end of their economic life, leaving part of the capital investment unrecovered.
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About this indicator
Description
This indicator estimates the value of stranded coal assets based on observed premature coal plant retirements, using unit-level data from Global Energy Monitor. It quantifies realised stranded assets from actual early retirements of coal-fired power plants during 2016–2025, using the overnight capital cost method, and project stranded assets for future years under a 1.5°C pathway.
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Caveats
This indicator has several caveats, which are listed in full in the report's appendix. This indicator only considered stranded assets of coal-fired power plants in the power generation sector. The analysis includes only stranded assets generated by existing coal-fired units and does not include planned units.
Data sources
- Building an open guide to the world’s energy system. Global Energy Monitor.
- Geographic information. Open Street Map.
- SSP Database (Shared Socioeconomic Pathways) – Version 2.0 hosted by IIASA. IIASA.
- International Institute for Applied Systems Analysis Representative Concentration Pathways (RCP) database (version 2.0). IIASA.
- The Overnight Cost of Capital (OCC) for coal-fired power plants in 40 countries has been obtained from the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) Full data sources can be found in the 2026 report appendix.