Peaks: Why They Matter

The report explains that peaking fossil fuel demand triggers a cycle of decline for the industry, leading to falling volumes, prices, and profits, while increasing the cost of capital and stranding assets.

• Peaking fossil fuel demand marks a turning point that shifts the industry from a period of growth to one of decline and risk, characterized by falling volumes, falling prices, and collapsing profits due to the sector's high capital intensity and leverage.
• The peak in demand leads to the stranding of assets at the top end of the cost curve and the potential bankruptcy of companies that do not prepare for the transition.
• Financial markets typically decline at the point of peak demand, resulting in a higher cost of capital as investors starve the industry of funds. Examples of stock price peaks coinciding with demand peaks include US coal, European fossil fuel electricity, and global oil services.

APA

RMI (2022). Peaks: Why They Matter. https://rmi.org/resources/peaks-why-they-matter/

Chicago

RMI. Peaks: Why They Matter. 2022. https://rmi.org/resources/peaks-why-they-matter/.

Wikipedia

{{cite report |author=RMI |title=Peaks: Why They Matter |date=18 August 2022 |url=https://rmi.org/resources/peaks-why-they-matter/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2022peaks, author = {{RMI}}, title = {{Peaks: Why They Matter}}, institution = {RMI}, year = {2022}, month = aug, url = {https://rmi.org/resources/peaks-why-they-matter/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }