Even though any types of unexpected risks can render stranded assets— stranded resources (beyond financial resources) that cannot be used or developed further— the concept has been increasingly linked to environmental issues, particularly climate change. This entry looks at the definition and the causes of stranded assets, and the subsequent effects. Stranded assets have a direct economic impact on market actors, particularly investors. In addition, there is liability risk where economic losses from stranded assets increase the liability risk imposed on financial supervisors and investors. When climate-related stranded assets cause economic losses, asset managers could get sued for a violation of their fiduciary duty. On the other hand, fiduciary duty can be a reason why some remain investing in fossil fuel assets to achieve a high financial performance in the short term. Hence, litigation can be both a result and a cause of stranded assets. In addition, this entry introduces the distributional effects of stranded assets from a just transition perspective.