About the book
Climate change is increasingly posing threats to energy assets and investments, and these impacts are projected to grow in the coming decades. At the same time, the energy sector is experiencing a myriad of challenges, notably, fears of a possible utility “death spiral”, aging infrastructure, retiring workforce, years of stagnant investment in smart grid resilience, business model innovation reforms, and changing customer expectations. To mitigate the worst impacts, attention is now shifting to strategies for derisking energy investments—longer-term climate-resilient mitigation and adaption strategies in energy infrastructure development around financing, costs, and revenue to reduce climate change risks. The two principal risks involve those arising from the physical effects of climate change on energy infrastructure, institutions, businesses operations, energy markets and assets, and risks resulting from the shift to a low carbon economy due to changes in technology, policy, legal, and market factors. This book looks at both physical climate risks and stranded asset risks: what strategies would be needed to derisk energy investments against climate change impacts; and how governance system can be structured to deal with stranded asset risks resulting from repricing or write-downs of carbon-intensive assets. The book should be a valuable one-stop comprehensive information resource on climate risks and energy investments topics for students, researchers, academics, and policymakers interested in long-term trends in energy infrastructure design, electricity markets, and global environmental, climate change and energy policy development.