One-fifth of the world's power plant capacity could be at risk of asset holding

A new study by researchers at the University of Oxford's Martin School warns that with global warming limited to 1.
5°C to 2°C, one-fifth of global power plant capacity could be at risk of asset shelving
.

One-fifth of the world's power plant capacity could be at risk of asset holding

The article, published in the journal Environmental Research Letters, lays out the promised emissions of existing and planned power plants in line with the Paris climate agreement, as well as the required asset holds
.
The researchers explained that future CO2 emissions from coal- and gas-fired power plants already commissioned would exceed the Paris climate agreement target of up to 6 billion tonnes of CO2
.

Unfortunately, as the report points out, the power sector will invest $7.
2 trillion globally in power plants and grids over the next decade, which will lead to a further 27 billion tonnes
of CO2 emissions.

"Existing power plant capacity, if operating to the end of their useful life, will emit around 30 billion tonnes of CO2, which exceeds the 24 billion tonnes
that can be afforded to meet climate targets.
" Alexander Pfeiffer, lead author of the report, said: "Any current investment in CO2-emitting infrastructure will have a significant impact
on humanity's ambitions to achieve the Paris climate agreement.
”

Finally, even if planned power plant projects are cancelled, about 20% of the world's current power plant capacity will still be put on
hold in order to achieve the Paris climate agreement.

"There is an urgent need for businesses and investors to reassess their investments in fossil fuel power plants, and governments need to step up policies to avoid further carbon lock-in
.
" Pfeiffer added
.

According to research data, the number of coal-fired power plants under construction or planned at the beginning of 2017 accounted for 77.
5%
of total CO2 emissions.
Specifically, of the 270.
8 billion tonnes of CO2 planned over the next decade, 210 billion tonnes will be attributed to coal projects, while Asia will account for 162.
4 billion tonnes
.

"To combat man-made climate change, we need to stop building fossil fuel power plants and start dismantling coal-fired power plants
immediately.
" Dr Ben Caldecott, Director of Sustainable Finance at the University of Oxford, explains, "New coal, let alone existing coal, is completely out of line with the Paris climate change agreement
.
”

"The analysis shows that we are already in serious trouble
.
" Professor Cameron Hepburn, director of the Sustainable Economics Programme at the University of Oxford, added: "We must either stop operating equipment, capture carbon pollution, deploy expensive negative emission technologies, or choose to abandon agreed climate targets
.
”

However, even if the deployment of large amounts of carbon capture storage and negative emissions technologies begins, a large number of assets will remain on hold, and building more fossil fuel power plants over the next decade will only increase the number of
asset strands.

"Emissions will have to fall
rapidly if the Paris climate targets are to be met.
" Pfeiffer added, "But the current large-scale plans for new fossil fuel power plants show that the risk of asset shelving has not been adequately considered
.
" In the long run, this can be costly for the industry and investors
.
”

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