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The document analyzes the role of depreciation in managing stranded assets during the early retirement of coal-fired power plants. It explains how regulators can use depreciation schedules and 'regulatory asset' accounts to balance the interests of utilities, consumers, and clean energy advocates. Key policy options discussed include accelerating depreciation to match retirement dates or extending schedules to reduce immediate rate shocks for consumers. The brief also highlights the potential for refinancing high-cost equity with lower-cost debt to lower the overall cost of the energy transition.

The briefing examines the financial challenges and opportunities associated with the early retirement of coal-fired power plants in the United States, using Colorado as a case study. It highlights that the marginal cost of energy (MCOE) for many coal plants now exceeds the cost of new wind and solar resources. To manage the resulting 'stranded assets' and undepreciated plant balances, the author proposes a transition strategy involving financial analysis of public data, the use of regulatory assets, and refinancing mechanisms such as debt-for-equity swaps and securitization. These tools are intended to reduce consumer costs, maintain utility investor returns, and fund just transition initiatives for affected workers and communities.

The policy brief examines the "steel for fuel" strategy, where utilities replace fossil fuel plants—which incur pass-through fuel costs with no earnings potential—with wind and solar assets that allow for regulated equity returns. Using Xcel Energy as a primary example, the document explains how this transition can reduce consumer bills through fuel savings while maintaining or increasing shareholder value. It highlights the role of competitive bidding and the balance between utility ownership and independent power producers (IPPs) to ensure the lowest costs for consumers.

The report examines downstream beneficiation—the domestic processing of raw materials—noting that policies are often driven by political goals rather than economic analysis. It identifies key prerequisites for success, including guaranteed market demand, infrastructure, and inexpensive energy, while arguing that proximity to raw materials is increasingly less important than proximity to consumers. The document analyzes five policy options: incentives, prescriptive measures, negotiations, bidding, and government-led investments, highlighting that without a strong business case, these can lead to inefficient 'white elephant' projects. It concludes with recommendations for governments to use market and cost-benefit analyses, including considerations for environmental externalities and the risk of stranded assets in the oil and gas sector due to global decarbonization targets.

The document is a formal letter to Senator Elizabeth Warren from 33 organizations supporting the Climate Risk Disclosure Act of 2018. The signatories argue that standardized climate risk disclosure by the Securities and Exchange Commission is essential for investors to assess physical, financial, and legal risks, such as stranded assets and refinery flooding, thereby accelerating the transition from fossil fuels to clean energy and maintaining financial stability.

The report argues that coal transitions are already underway due to economic shifts, the falling cost of renewables, and environmental concerns, independent of climate policy. Through analysis of China, India, South Africa, Poland, Germany, and Australia, it concludes that phasing out coal is technically feasible and cost-neutral or advantageous for consumers. It emphasizes that a 'just transition' for workers and communities is possible through early stakeholder consultation, tailored workforce programs, and regional economic diversification. The document also warns coal exporters of the risks of stranded assets and the potential for abrupt declines in global demand.

The report identifies that Canada remains a significant provider of oil and gas subsidies within the G7. It details various federal tax deductions and direct funding programs for the industry, noting that while some subsidies appeared to decrease between 2015 and 2016, this was largely due to low oil prices and accounting practices rather than complete elimination. The authors argue that these fiscal supports create a risk of stranded assets and undermine the transition to renewable energy.

The document argues that Canada remains a significant provider of fossil fuel subsidies among G7 nations, despite some reforms. It details various federal mechanisms of support, including tax deductions for exploration and development, and direct funding for innovation and carbon capture. The report highlights that the apparent decrease in subsidies between 2013 and 2016 was largely due to low oil prices and accounting practices that allow companies to defer tax deductions, rather than a complete elimination of support. It further argues that these subsidies are incompatible with Canada's climate goals and the need for a just transition for workers.

SEI scientists Peter Erickson and Michael Lazarus argue that limiting fossil fuel supply, specifically high-cost and high-emissions oil in California, is essential for solving the climate crisis. They contend that reducing production helps avoid stranded assets and that California's projected decrease in oil demand by 2030 allows for a production phase-down without increasing oil imports.

The Life After Coal Campaign (LAC) argues that new coal-fired power plants in South Africa are irrational, costly, and contrary to international climate obligations. The campaign highlights the severe water externalities of coal, the health risks associated with the proposed Khanyisa power station, and the financial risks of stranded assets as global investment shifts away from thermal coal. LAC advocates for a just transition that prioritizes renewable energy, protects workers' livelihoods, and ensures Eskom's active role in a sustainable energy system.

The Centre for Environmental Rights (CER), on behalf of the Life After Coal/Impilo Ngaphandle Kwamalahle Campaign, has written to Eskom to challenge the procurement of two coal-fired independent power producers (IPPs): Thabametsi and Khanyisa. The CER argues that these projects are not 'value for money' as they would increase system costs by 19.6 billion Rand, raise greenhouse gas emissions, and risk becoming stranded assets. The letter highlights that the projects lack necessary licenses and are subject to pending High Court reviews. It requests detailed information on the status of the PPAs, the 'value for money' assessment, and compliance with the Public Finance Management Act (PFMA) and New Generation Regulations.

The Centre for Environmental Rights (CER), representing the Life After Coal Campaign, is challenging the progression of the Thabametsi and Khanyisa coal-fired power stations. The CER argues that these projects fail the 'value for money' test, would increase greenhouse gas emissions, and are unable to reach commercial close due to missing licenses and pending High Court reviews. The letter requests detailed information on the status of the procurement process and the specific regulatory approvals required before PPAs can be signed.

The report argues that climate change poses significant physical and transition risks to financial assets, particularly in high-carbon sectors, and that these risks are often not adequately priced into the market. It highlights the potential for 'stranded assets' in fossil fuels and coal, while simultaneously identifying substantial growth opportunities in renewable energy, green infrastructure, and energy efficiency. The document concludes that climate-aware investing is a necessity that can match or outperform conventional benchmarks without sacrificing returns.

The document outlines a dialogue between stakeholders on the necessity of a managed decline of Canada's oil and gas sector to avoid the economic and social disruptions of an unmanaged collapse. It emphasizes that climate leadership for wealthy fossil fuel producers requires ending production expansion and implementing supply-side policies. Key discussions focus on the need for a dedicated transition fund, the reform of fossil fuel subsidies and Alberta's low royalty regimes, and the importance of participatory planning that protects workers and communities. The paper argues that a comprehensive policy portfolio—combining demand-side carbon pricing with supply-side production limits—is essential for Canada to meet its global fair share of emissions reductions.

The document examines the risks Colombia faces as a major coal exporter amid falling global demand and the rise of renewables. It highlights the extreme vulnerability of the Cesar and La Guajira departments, where coal is a dominant driver of regional GDP and employment. The brief argues that Colombia currently lacks a formal national or regional plan for a post-coal transition, leaving it susceptible to economic instability, unemployment, and social unrest. It recommends long-term planning led by the DNP and UPME, diversification into agriculture and tourism, and the implementation of a 'just transition' framework to protect workers and the environment.

The report exposes the Ngoki oil project in the Republic of Congo as a high-risk venture characterized by corruption, environmental negligence, and potentially exaggerated oil reserves. It highlights the project's threat to the world's largest tropical peatlands in the Cuvette Centrale, which store 30 billion tonnes of carbon. The investigation reveals that the project is controlled by businessman Claude Wilfrid Etoka, who has close ties to President Sassou-Nguesso's family and whose company, SARPD Oil, was dropped by BNP Paribas due to corruption risks. Furthermore, the report argues that the project's Environmental Impact Assessment is "unfit for purpose" as it predates the discovery of the peatlands. It also notes that oil majors Total and ENI have interests in the region, and calls for donors to the Central African Forest Initiative (CAFI) and financial institutions to halt support for oil exploration in these sensitive ecosystems.

The document examines the intersection of mining, governance, and the Fourth Industrial Revolution in Africa. It argues that while the global energy transition will double demand for minerals like copper, lithium, and cobalt, African countries must strengthen institutions to ensure these resources drive broad-based industrialisation rather than remaining as disconnected enclaves. The author analyzes specific governance failures and opportunities in South Africa, Guinea, Botswana, and Tanzania, emphasizing the need for stable legal frameworks, the protection of ecological integrity, and the formalisation of artisanal mining. It concludes that leapfrogging traditional development trajectories via renewable energy and smart technology is possible if governments prioritize inclusive institutions over the interests of politically connected elites.

The study finds that new coal-fired power plants are not necessary to meet South Africa's electricity demand at the lowest cost and that their inclusion would substantially increase both system costs and greenhouse gas emissions. Using the South African Times Model (SATIM), the authors demonstrate that a least-cost build plan relies on wind, solar PV, and gas, while the coal IPPs would create a generation surplus and potentially accelerate Eskom's financial crisis. The report highlights that the emissions from these plants would almost entirely offset the savings from the National Energy Efficiency Strategy or the carbon tax, complicating South Africa's ability to meet its Paris Agreement commitments.

India faces twin challenges as it scales renewable energy: the need for increased grid flexibility and the risk of coal-based plants becoming economically unviable due to falling plant load factors (PLFs). The report argues that transitioning existing coal plants into flexible resources is a cost-effective short-term solution. This conversion requires technical retrofits to allow for lower minimum loads, reduced start-up times, and increased ramp rates. While this path involves incremental costs of 5-10% of total project costs in NPV terms, it is significantly cheaper than deploying lithium-ion batteries or pumped hydro. The report recommends market-based mechanisms, such as capacity auctions and revised power purchase agreements, to compensate plant owners and ensure a transition toward a low-carbon electricity system.

The Life After Coal Campaign and Greenpeace Africa have written to South Africa's Minister of Energy to express concerns that the updated Integrated Resource Plan (IRP) for electricity is being fast-tracked without sufficient public consultation. The authors argue that the IRP must be based on the least-cost technology combination, account for external costs to health and climate, and align with South Africa's Nationally Determined Contribution (NDC) under the Paris Agreement. They specifically oppose the continued inclusion of coal and nuclear power, citing the risk of stranded assets and the need for a just transition to renewable energy. The letter warns that failing to provide a transparent, fair process for public comment would make the final IRP vulnerable to legal challenges.