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Those failing to do so will find the risk of strandedassets to be high and rising. For companies that leveraged aggressively in this period, refinancing and follow-on financing strategies in the coming years must pivot toward the equity markets.
In addition to hampering global efforts to curb carbon emissions and achieve net-zero by 2050, coal power finance carries substantial socio-economic risks for the countries that host projects, leading increasingly to strandedassets.
Investing in fuel flexibility is the most financially viable way to avoid the risk of strandedassets, concludes the document. But action must be swift – we have the lifecycle of just a single vessel to get this right.” Wärtsilä says it has been developing multiple fuel options.
With more than 25 years of experience in sustainable development, energy and climate, Mendiluce was named one of Time magazines 100 most influential people on climate in 2023. Countries that have fossil fuel assets, they need to understand that the demand is going to decrease. This interview has been condensed and edited.
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