Stranded White Elephant

A stranded white elephant is a large-scale asset or project that becomes uneconomic, underutilised, or obsolete due to changing market conditions, regulations, or climate transition dynamics. In climate finance, this often refers to carbon-intensive infrastructure, such as coal plants, oil pipelines, or industrial facilities, that once required heavy investment but no longer delivers expected returns. These assets not only lose financial value but also carry reputational and transition risks for investors, highlighting the importance of forward-looking climate risk analysis, scenario planning, and credible net-zero strategies.

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