European, Chinese and South Korean financiers have over half of their portfolio tied to oil and gas carriers that are most at risk of becoming stranded assets in the global rush to shift to a low-carbon energy system, a new report by UCL’s Energy Institute Shipping and Oceans Research Group suggests.

As the global economy moves toward decarbonization, the maritime transport industry is staring at the abyss of stranded assets, i.e., vessels that lose value before the end of their operational lives, UCL’s report said. Yet, little is known about who ultimately bears the financial risks or how they might ripple through shipowners, operators and their financiers should they materialize.