Trillions in Assets May Be Left Stranded as Companies Address Climate Change

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Write-downs of power plants, auto factories and fossil-fuel reserves could cause big losses in the transition to renewable energy

At the end of 2019, General Motors Co. announced a $1 billion investment to produce a new generation of Chevrolet Colorado and GMC Canyon pickup trucks at its factory in Wentzville, Mo.

Just over a year later, GM said it would go all electric by 2035. Analysts are worried that some of the new Wentzville machinery could end up on the scrap heap, adding to a multitrillion-dollar pile of assets that will lose value as the country shifts away from fossil fuels.

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Companies that aren't already making decisions based on anticipation of at least $135/tCO2 on fossil fuels by 2030 are not paying attention. A global carbon price is coming, driven by the EU, US, or others. The only question is when it will start. It could start very soon.

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