“Today, we are in a climate crisis,” explains Marylin Waite. “To solve the problem, to preserve our ecosystems and our lives, we need to direct enough investments towards climate solutions, such as renewable energy, agriculture that can store CO², and green transportation…”
The math is straightforward. We need about 4 trillion dollars (note: 4,000,000,000,000 euros) each year by 2050 to invest in the transition. But investment is not keeping pace. "And yet, the money is there,” emphasizes Marylin Waite. “We have 450 trillion at our disposal. Not in the public sector, but in all private assets, meaning in our bank accounts, whether current or savings, and pensions. The 4 trillion needed represents less than 5% of global GDP.”
The issue is not a lack of money, but a lack of will. So, how do we motivate and mobilize this money towards a just transition? For Marylin Waite, there need to be incentives. For example, financial products that bundle climate solutions, making it easier for investors to do business, which in turn allows for loans to SMEs implementing these solutions.
Visibility is also crucial. Communication efforts are very important, as the presence of fossil fuels in the media landscape is still too prominent, while the coverage of decarbonized solutions is insufficient.
A commitment that pays off. The Climate finance fund, supported by the Hewlett Foundation, is already backing numerous incubators and accelerators that invest in startups. "For example, we were able to subsidize Green-Got, a French bank that supports climate solution projects. We also financed la Nef, an ethical bank in France that lends to SMEs offering climate solutions and social justice.” This is part of innovative finance.
A second pillar is systemic change, which involves legislation and regulation. The CCF has, for example, created a coalition of sustainable European banks in Brussels, aimed at “demonstrating to decision-makers that it is possible to have a business activity that does not deny either the environment or communities.”
The Climate finance fund was one of the first to support the PCAF, the partnership for decarbonizing finance, a gathering of banks and asset managers worldwide that have standardized a methodology for measuring CO² corresponding to each financing. "With this transparency, we can now hope that banks will decide to reduce the amount of CO² in their loans and investments. So, this is part of the systemic changes that extend to the evolution of laws. For example, the Banking Authority in Europe has decided to require these figures during transactions.”
On the site Climate solution stocks, you can find all publicly traded stocks worldwide that support climate solutions, “so there is no excuse for investors not to support this kind of business,” concludes Marylin Waite.
