Peaks: Why They Matter

The document asserts that the peak of fossil fuel demand marks the transition from a period of growth to one of systemic decline, characterized by falling volumes, prices, and profits. This shift leads to stranded assets, increased cost of capital, and corporate failures, leaving the sector vulnerable to financial market volatility and short-selling once immediate supply shocks subside.

• The peak of fossil fuel demand initiates a series of negative economic consequences for the industry, including declining volumes, falling prices, and collapsing profits due to the sector's high capital intensity and leverage.
• Peaking demand leads to the stranding of high-cost assets and the failure of companies that do not adapt to the new environment.
• Financial markets react to demand peaks by increasing the cost of capital and decreasing stock prices, as seen previously with 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} }