What it is
Carbon Tracker is an independent financial think tank that analyzes the impact of the energy transition on capital markets. They pioneered the concept of 'stranded assets,' the idea that fossil fuel reserves may become unburnable and therefore worthless as climate policy tightens and renewables become cheaper. Their research is used by investors, regulators, and central banks worldwide.
Why we picked this
Carbon Tracker changed the conversation about climate from environmental risk to financial risk. Their analysis showing that fossil fuel companies' valuations assume burning more carbon than the atmosphere can absorb was a watershed moment for climate finance. With EU carbon prices at approximately 68 EUR/tonne and projected to reach 400-630 EUR/t by 2050, their stranded asset thesis is playing out in real time.
Key takeaways
- Fossil power generation is now approximately 2x more expensive than new solar and wind at carbon prices around 65 EUR/tCO2e.
- EU Emissions Trading System (ETS) allowance prices are at approximately 68 EUR/t in March 2026 and projected to reach 400-630 EUR/t by 2050.
- Carbon Tracker's research is cited by the Bank of England, European Central Bank, and major pension funds as a framework for assessing climate-related financial risk.