Globally binding targets to reduce carbon emissions, along with the expansion of alternative and renewable energy, will most likely reduce demand for fossil fuels. This means that large reserves of oil, gas and coal could become “stranded assets” that cannot be burned and therefore cannot be extracted. Large fossil fuel projects could increasingly become uneconomic to operate, leading to dwindling government revenues and development benefits in fossil fuel-rich countries.
To fulfil our mission to make natural resources benefit all citizens, PWYP is addressing new issues – such as calling for disclosure by companies of their climate-related financial risks, or the use of financial modelling to help inform decisions over whether fossil fuel extraction should take place at all in a particular context. We are working with our members and partners, such as Open Oil and NRGI, to explore ways in which transparency can help ensure a just and fair energy transition.