Biden Law Feeds Writedown Call at $50 Billion Green Investor (1)

Financial markets aren’t pricing in the heightened risk of mass writedowns across energy portfolios that’s implied by the Inflation Reduction Act, according to the chief executive officer of Impax Asset Management.

Investors are still “really struggling” to calculate the so-called stranded-asset risk that oil, gas and coal producers face, Ian Simm, CEO of the $50 billion London-based sustainable investment manager, said in an interview.

There’s already a “significant risk” that energy investors will be left holding stranded fossil-fuel assets, the 56-year-old said. “And that’s been exacerbated by the Inflation Reduction Act,” he said, as unprecedented subsidies for ...