Climate change investments – 3 ‘R’s (Reduce, Remove and Retrofit)

Climate change investments – 3 ‘R’s (Reduce, Remove and Retrofit) Climate change efforts are transforming economies, businesses, and the investment landscape around the world, creating opportunities for returns.

The climate challenges we face have significant risks, but equally create significant opportunities.

Investors have taken note and climate change spending has increased exponentially in the last few years.

In an effort to reduce carbon dioxide emissions, governments have established net-zero targets, and one fifth of the world’s top public corporations have now made some type of net-zero pledge to offset their carbon emissions.

But how can investors locate the investments they want to make in this tidal surge of opportunity? It is useful to consider climate change investments from two perspectives: Stages: Being aware that opportunities range from early-stage venture capital to public market leaders looking to become more sustainable.

We believe that some of the more exciting investments right now are in private companies with established solutions that are ready to scale up.

Area of impact: Identifying a company’s or technology’s goals that align with the change people wish to invest in. How can current infrastructure be adapted to the new realities brought about by climate change? T This allows investors to pursue returns in a significant growth area.

We anticipate four main drivers propelling the transition to a “climate-aware” economy: government legislation and pledges; falling costs of enabling technology; consumer demand; and corporate pledges and initiatives.

Countries around the globe are rapidly increasing their pledges and regulations to reduce carbon emissions to net zero.

In October, the UAE pledged to decrease its carbon emissions to net zero by investing billions over the next three decades in clean and renewable energy sources.

Companies committing to adopt net-zero policies by the end of the century more than tripled.

The cost of key technological innovation has been falling, increasing the scalability and competitiveness of alternative energy sources.

Consumer demand for sustainability-marketed items is expected to reach new levels in yearly sales according to researchers.

Although accounting for only per cent of the market, sustainability-marketed items accounted for more than half of market growth in the past five to six years.

According to a recent PwC survey, per cent of Middle Eastern customers consider themselves more environmentally conscious and the same proportion think of sustainability concerns when determining what to buy.

Today, climate change investing offers numerous opportunities. People can invest in early-stage start-ups or traditional companies as they adapt to new climate change technology.

Right now, we are seeing some of the most intriguing prospects in private organisations that are taking existing solutions and making them more scalable, efficient, and costeffective for use by consumers and established businesses.

Invest in mid to late-stage companies that are seeking to provide electric vehicle charging stations, and finding ways for these stations to fit into existing electricity grids Private funding may provide more growth because several technology solutions — such as carbon capture, hydrogen and long-duration battery storage — are still in development.

Aside from the financial potential, some investors are driven to engage in climate solutions because of the possible impact of tackling the threat of climate change.

Possible solutions are classified as the “three Rs”: reduce, remove, and retrofit.

Reduce: Emissions reduction, which includes the decarbonisation of the energy supply, has been a major focus of climate investments. There are also less well-known opportunities to reduce energy demand and transform other non-energy carbonintensive processes.

Remove: When carbon-neutral replacements are unavailable, carbon removal is required to achieve net zero. Excess greenhouse gases from the atmosphere can be eliminated in two ways: naturally and mechanically. Greenhouse gases can even be removed from the ocean.

Retrofit: The World Bank estimates that many billions will be needed each year to globally adapt to climate change - even though adaptation incurs upfront expenses, it can lead to several benefits in the form of averting damage.

Overall, projected government action to decarbonise our globe strengthens the case for climate-focused investments.

Thus, investing in climate solutions, renewable energy and sustainable ventures offers enormous growth potential and may yield higher long-term profits.

Contact Us: John Martin

Founder and Chief Executive Officer

PLUTUS CONSULTING GROUP LIMITED Birchin Lane, City of London, LONDON EC3V 9BW, UNITED KINGDOM t: +44 (0) 207 183 1464 (UK Office) t: +352 2033 1754 (Luxembourg Office) t: +41 446 880 190 (Switzerland Office) m: +44 (0)7773 774 917 e: john@plutusconsgroup.com www.plutusconsgroup.com