Capital Stranding Cascades

The report introduces a framework combining Input-Output and network theory to identify sectors that trigger and are exposed to capital stranding cascades. In a sample of ten European countries, mining is identified as a high-trigger sector, while electricity, gas, and refined petroleum are most affected by decarbonisation. The report estimates that transition-related stranding risks affect between 0.6% and 8.2% of the overall productive capital stock in these countries.

• The report utilizes a combination of Input-Output (IO) and network theory to identify sectors that trigger capital stranding cascades and those most vulnerable to such risks.
• In a study of ten European countries, the mining sector is among those with the highest external asset stranding multipliers. Decarbonisation-triggered stranding most affects electricity and gas, coke and refined petroleum products, basic metals, and transportation, which then cascades into sectors such as chemicals, metal products, motor vehicles, water and waste services, wholesale and retail trade, and public administration.
• The lower-bound estimate for assets at risk of transition-related stranding in the sampled countries ranges from 0.6% to 8.2% of the total productive capital stock, with the highest concentrations in mining, manufacturing, and the electricity and gas sector.

APA

Stockholm Environment Institute (2019). Capital Stranding Cascades. https://www.sei.org/publications/capital-stranding-cascades/

Chicago

Stockholm Environment Institute. Capital Stranding Cascades. 2019. https://www.sei.org/publications/capital-stranding-cascades/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Capital Stranding Cascades |date=6 March 2019 |url=https://www.sei.org/publications/capital-stranding-cascades/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2019capital, author = {{Stockholm Environment Institute}}, title = {{Capital Stranding Cascades}}, institution = {Stockholm Environment Institute}, year = {2019}, month = mar, url = {https://www.sei.org/publications/capital-stranding-cascades/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }