This paper, first presented at the 1st Global Stranded Assets Conference, hosted by the Smith School in Oxford September 2015, looks at developments over the past two years around the concepts of carbon asset risk, stranded assets and wasted capital in relation to the fossil fuel industry. We draw on NGO and market research, and corporate and investor activity. The focus is on establishing a framework for analysis and assessing how investors and corporations are responding in terms of risk management, disclosure, corporate capital expenditures and the implications for investors in terms of portfolio management, engagement and divestment. This is done in the context of share and commodity markets. We show that carbon asset risk (CAR) is in the process of moving from discussion and acknowledgement to action and impact.