Blog BanRep | The Paris Agreement and its Effects on Commercial Credit to Fossil Fuel Firms
This paper examines the risk of turning assets linked to fossil fuel exploitation into stranded assets. This risk has financial implications for firms in the sector and is also macroeconomically relevant.
Publication Date:
Monday, 31 March 2025
11:03
In 2015, Colombia signed the Paris Agreement, thus committing to reduce the exploration, exploitation, and consumption of fossil fuels such as coal, natural gas, and oil. A consequence of this agreement is the risk of turning fossil fuel-related assets into stranded assets, whose value would decrease as they cease to be operational. This risk has financial implications for firms in the sector, which are also macroeconomically relevant given their importance in the Colombian economy.
