The Carbon Tracker Initiative is a financial think tank which provides in-depth analysis on the impact of climate change on capital markets and investment in fossil fuels, mapping risk, opportunity and the route to a low carbon future.
The group is made up by former financial and energy analysts, expert systems thinkers and communicators with a ground breaking approach to limiting future greenhouse gas emissions and the scale of their impact.
They have the technical knowledge, connections and reach to get inside the mind-set of the global financial community and effect change on a global scale.
Carbon Tracker is a non-profit, independent organisation, free from the commercial constraints of mainstream analysts and able to set our own research agenda.
Scientists worldwide are now agreed that continuing emissions of greenhouse gases will cause further warming and long-lasting change in all components of the climate system, increasing likelihood of severe, pervasive and irreversible impacts for people and ecosystems.
Carbon Tracker’s aim is to raise awareness among key decision makers about the risks that fossil fuel investments pose to financial stability. In this way they are challenging the status quo allocation of capital and shifting the financial markets system towards supporting a low carbon future.
Carbon Tracker is doing this using a new language and framework that approaches climate change not just as an environmental problem, but as a financial one.
Since 2011 the initiative has been developing the ground-breaking ‘Carbon Bubble’ financial theory. It warns that investors risk being left with ‘stranded assets’ - investments in fossil fuels that are rendered unprofitable by global technological advances, tougher climate regulation and the switch to renewables.
Carbon Tracker argues that in order to prepare the ground for the low-carbon transition underway, capital markets need to correctly price climate risk and the ‘true’ costs of investing in fossil fuels.
Carbon Tracker’s financial model investigates the implications of lower demand, price and emissions scenarios for the capital expenditure plans of the fossil fuel industry.
Their latest analyses (Lost in Transition, Danger Zone) show that a business as usual model could put $2 trillion of capital expenditure on high-cost projects at risk of becoming financially stranded to 2025.