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Executive Summary (partial) "Global carbon budget Research by the Potsdam Institute calculates that to reduce the chance of exceeding 2°C warming to 20%, the global carbon budget for 2000-2050 is 886 GtCO2. Minus emissions from the first decade of this century, this leaves a budget of 565 GtCO2 for the remaining 40 years to 2050. Global warming potential of proven reserves The total carbon potential of the Earth’s known fossil fuel reserves comes to 2795 GtCO2. 65% of this is from coal, with oil providing 22% and gas 13%. This means that governments and global markets are currently treating as assets, reserves equivalent to nearly 5 times the carbon budget for the next 40 years. The investment consequences of using only 20% of these reserves have not yet been assessed. … The regulator’s responsibility The recent financial crisis has shown that capital markets were not-self-regulating and required unprecedented intervention; regulators were not monitoring the biggest systemic risks and so missed key intervention points. Listing authorities will need to take greater responsibility for reviewing the provision of information on embedded carbon by quoted companies. They need to ensure that taking the capital markets as a whole, systemic risks posed by the carbon asset bubble are addressed. Further regulation, guidance, and monitoring are needed to shift practices across the exchanges."

Additional Nematrian Commentary This paper argues that listing authorities should require that carbon rich firms (such as oil and natural gas firms) provide information in their financial statements on how much of their stated reserves are likely to be burnt and how much would be "stranded" if global CO2 emissions targets are to be adhered to.

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