Carbon Tracker Initiative

Carbon Tracker Initiative
Name	Carbon Tracker Initiative
Type	Non-profit think tank
Founded	2010
Headquarters	London, United Kingdom
Key people	Mark Campanale, Simon Diklen, Rachel Kyte
Focus	Climate risk, fossil fuel finance, stranded assets

Carbon Tracker Initiative Carbon Tracker Initiative is a think tank established to analyze financial risks associated with fossil fuel reserves and the transition to a low-carbon energy system. It produces research aimed at investors, regulators and civil society, linking financial markets with climate-related outcomes such as Paris Agreement targets and carbon budget constraints. The organisation's work has informed debates in London, New York City, Brussels, Washington, D.C. and international bodies including the International Energy Agency and the United Nations Framework Convention on Climate Change.

Overview

Carbon Tracker Initiative focuses on the intersection of climate change science, financial regulation, investor stewardship and energy markets. Its flagship concept, "stranded assets", reframes liabilities on balance sheets for companies like BP plc, ExxonMobil, Shell plc, Chevron Corporation and TotalEnergies SE. The organisation communicates to stakeholders such as BlackRock, Vanguard Group, Bank of England, European Central Bank and International Monetary Fund about systemic risks tied to unburnable coal, oil, and natural gas reserves. Its analyses often cite scenarios from the Intergovernmental Panel on Climate Change and modelling from the International Renewable Energy Agency.

History and Founding

Carbon Tracker Initiative was founded in 2010 by Mark Campanale following earlier campaigns by environmental NGOs and investor networks like 350.org, Ceres and the Carbon Disclosure Project. Early endorsement and collaboration came from academics at institutions such as University College London and Oxford University and from campaigners associated with Greenpeace and Friends of the Earth. The organisation emerged amid policy developments including the aftermath of the 2008 financial crisis, the negotiation cycles of the United Nations Climate Change Conference and investor-led initiatives like the Principles for Responsible Investment. Its early studies catalysed discourse among asset managers, sovereign wealth funds such as the Norwegian Government Pension Fund Global and regulators in Canary Wharf and Frankfurt am Main.

Research and Methodology

Carbon Tracker Initiative employs scenario analysis, portfolio stress-testing and asset-level accounting to quantify exposure to climate-related financial risks. The methodology draws on inputs from the Intergovernmental Panel on Climate Change scenarios, modelling from the International Energy Agency and datasets used by institutions like Bloomberg, S&P Global, MSCI and Refinitiv. Research methods include production-cost modelling, forward price curve analysis and stranded asset mapping of projects by companies including Glencore, BHP, Anglo American plc and Eni S.p.A.. The group engages with auditors and standard-setters such as the Financial Stability Board and the Task Force on Climate-related Financial Disclosures to align frameworks for accounting and disclosure. Collaborations have involved think tanks and universities such as Chatham House, Imperial College London and Columbia University.

Key Reports and Findings

Notable publications include the initial "Unburnable Carbon" report, analyses of the coal-sector transition, and studies on the financial viability of oil wells and gas fields. Findings warned that a significant share of listed reserves owned by companies like ConocoPhillips and Occidental Petroleum could become stranded under pathways consistent with the Paris Agreement. Reports quantified potential write-downs affecting investors including pension funds such as the California Public Employees' Retirement System and sovereign investors like the Government Pension Fund of Norway. Sectoral studies influenced litigation strategies pioneered by activist lawyers in cases in jurisdictions including Australia, Netherlands and United States. Follow-up analyses examined the rise of renewable energy deployment promoted by companies such as Ørsted and Siemens Gamesa, and the implications for coal-centric utilities like RWE and E.ON.

Impact and Influence

Carbon Tracker Initiative helped popularise the concept of "stranded assets" among major market actors and influenced policymaking in forums including the G20 Financial Stability Board and parliamentary committees in United Kingdom, France and Australia. Its work fed into investor engagement led by groups such as the Institutional Investors Group on Climate Change and shareholder resolutions filed at corporations listed on exchanges in London Stock Exchange Group, New York Stock Exchange and Euronext. Central banks and supervisors, including the Bank of England and the European Central Bank, have referenced climate-financial risks similar to those described by Carbon Tracker in stress-testing and prudential guidance. The research has been cited in reporting by publications like Financial Times, The Economist, The Guardian and Bloomberg News and has shaped strategies at asset managers including Legal & General Investment Management.

Funding and Governance

Funding sources for Carbon Tracker Initiative have included philanthropic foundations, philanthropic donors associated with climate philanthropy networks like the Children's Investment Fund Foundation and charitable trusts connected to individuals in Silicon Valley and London. It operates under a board and advisory structure with trustees and experts from academia, finance and policy communities, involving professionals formerly affiliated with institutions such as Barclays, Goldman Sachs, Prudential Regulation Authority and World Bank. The organisation participates in coalitions alongside NGOs including Rainforest Action Network and investor networks such as ShareAction to coordinate research, engagement and advocacy.

Category:Environmental organizations Category:Climate change think tanks Category:Financial risk analysis