Challenge

Until 2040, additional annual investments in clean energy of US$1 trillion will be needed to stay on the 2ºC trajectory to low carbon economies.

The vast majority of those investment (and solutions) will have to come from the private sector.

However, such green project supply and pipelines have not reached the necessary scale; likewise and reversely, capital supply is often insufficient, especially with regard to investments in infrastructure or emerging markets, where investment risks and impact remain difficult to assess and quantify.

Opportunity

Globally, (mainly new) infrastructure projects worth US$93 trillion will be undertaken between 2015-2030. This is a unique opportunity to design a maximum of projects as climate smart and resilient as only possible.

Financing and investments vehicles for such climate-friendly projects such as green bonds, ABS, YieldCos or Pace loans are already evolving into new asset classes and will be decisive to raise the required capital of unprecedented amounts.

Last not least, national governments, stock exchanges and development banks have begun to steer institutional investors and asset owners towards low carbon and energy-efficient projects and assets.

Solution

Enable the financing and investments for low carbon technologies around renewable energy, climate smart agriculture or low carbon transport Fuels as well as for climate resilient solutions.

Assess and design financial structures and tools to de-risk projects and aggregate those into bankable investments.

Demonstrate the business case and economic returns of strategic corporate climate investments.