Investing in climate protection

One relatively new domain in the world of financial investment focuses on climate change; in particular, investing in low- or zero-carbon business ventures, technologies and practices that contribute to protecting our global climate, as opposed to adding to the problem. This is an area attracting increased attention as one of the essential leverage points among actions to reverse global warming.

Among actions to channel investment flows towards climate change solutions is The Investor Agenda, developed by the global investor community "to accelerate and scale up the actions that are critical to tackling climate change and achieving the goals of the Paris Agreement." This collaboration includes the Asia Investor Group on Climate Change,CDP, Ceres, Investor Group on Climate Change, Institutional Investors Group on Climate Change, Principles for Responsible Investment and UNEP Finance Initiative. 

The media is showing increasing interest in climate change investment. For example, the New York Times highlighted a number of examples ("Climate-Change Funds Try to Profit From a Warming World," April 12, 2019) as well as offering advice ("3 Ways to Create a Climate Change Investment Strategy,") as did The Atlantic ("The Investor's Guide to Climate Change,") while an article in Forbes announced "Climate Change Investing: The Greatest Opportunity In History," (January 4, 2019.)

Strategies and goals underlying climate investment of course differ, especially with regard to parallel economic growth goals, which some find contradictory while others insist are compatible and even essential. In any case, how, where and how soon we invest our finances and assets will determine to what degree GHG emissions and climate change impacts are reduced or amplified in the coming years.