Fossil Fuel Risks in the Net-Zero Transition

The transition to net-zero carbon emissions presents significant risks associated with fossil fuels. As governments and industries shift toward renewable energy and decarbonization, reliance on coal, oil, and natural gas must drastically decline. Key risks include stranded assets, where fossil fuel reserves and infrastructure lose economic value due to reduced demand or regulatory restrictions. This can lead to financial losses for investors and companies heavily tied to fossil fuels. Additionally, continuing fossil fuel extraction and use exacerbate climate change, undermining net-zero goals. There are also social and economic risks, as communities dependent on fossil fuel industries face job losses and economic disruption without adequate transition plans. Furthermore, geopolitical tensions may arise from uneven global shifts in fossil fuel supply and demand. Managing these risks requires comprehensive policy frameworks that promote clean energy investment, ensure just transitions for affected workers and regions, and implement robust climate regulations. Ultimately, addressing fossil fuel risks is critical to achieving a sustainable, equitable, and resilient net-zero future.