To ask the Secretary of State for Energy and Climate Change, what the Government's policy is on stranded assets in the fossil fuel sector; and if he will make a statement.
21 October 2014
There are established processes through which potential risks from stranded assets in the fossil fuels sector are managed.
As recently as 8 July 2014 the Governor of the Bank of England wrote to the Chair of the Environmental Audit Committee on this issue saying that the Bank monitors risks to financial stability associated with a ‘carbon bubble’ through its regular gathering of information on financial stability risks.
Furthermore companies are requested, through the Companies Act 2006, to report on their principal risks as part of their annual report & accounts. In the case of listed companies, the company must include, to the extent necessary to understand the business, the main trends and factors likely to affect the future development, performance and position of the company’s business.