The 2°C target envisions a tolerable degree of global warming. Subsequent climate change mitigation measures in combination with resource scarcity and unmet energy demand may soon dramatically change the business landscape, paving the way to a “low-carbon economy”.
But the world is still struggling to agree on concrete emission reductions while many countries are far exceeding their projected carbon budgets. Faced with inconsistent legal frameworks, business still lacks the planning security it needs. In the meantime, long-term growth potentials remain unused and climate-prone risks increase.
What does “low-carbon” mean for different capital users?
- Opportunities and market potentials for suppliers of mitigation technologies and for innovative new businesses
- Risks and limited growth potentials for heavy polluters in energy- and resource-intensive industries
- High investments in infrastructure for the public sector
|
Financing the low-carbon economy implies a wide range of activities
- Long-term asset-allocation by institutional investors
- Providing venture capital and project finance for new low-carbon companies
- Financing specific projects in the areas of renewable energy and energy efficiency
- Divesting equity portfolios from high-risk carbon-intensive companies
|
