Research summary
Over the years, many governments have de-risked investments in the fossil fuel sector, making these them less costly, more appealing, and more likely to go ahead. Key avenues of de-risking have included public finance through export credit agencies (which provide government-backed loans, guarantees or insurance to domestic companies) and legal protection through international investment treaties. But to address the climate crisis and minimize the potential for unexpected financial losses, governments must now begin to “re-risk” these investments. This would entail reassessing the perceived risks associated with fossil fuel investments with a view to increasing them.
As Canada Research Chair in Economy and Environment, Dr. Kyla Tienhaara is studying several global arenas where these issues are being debated. She and her research team are generating insights and producing policy advice on the best approaches to re-risking fossil fuel investments—a practice that could help mitigate climate change by discouraging these investments.