- Global investment in climate-change mitigation and adaptation strategies has grown almost 60% over the past decade, with almost half of climate finance provided by the private sector. Yet the world is not on track to reach globally agreed goals.
- Renewable energy investments such as solar, wind, and hydropower have been the core elements of current efforts to reduce reliance on carbon-based fuels. More recently, both public and private sector investors are broadening their focus, advocating an “all hands on deck” approach to climate solutions that encompasses renewable energy, non-renewable zero-carbon energy (e.g., nuclear), and “carbon-negative” solutions – ways to remove carbon emissions from the atmosphere.
- In this report, we highlight less well known zero-carbon or carbon-negative solutions. We provide a brief recap of the science, key current net-zero approaches, and the growing (albeit still small) opportunity set for carbon-negative investments. We also look at some of the more early-stage or “edge” ideas as well as examples of innovative products and services targeting a zero-carbon future.
- Lastly, many investment managers are positioned to take advantage of the opportunities in this mega-trend. We offer selected examples of such strategies at the end of the report.
Heng Yang, Associate Director
Sam Sterling, CFA, Senior Analyst
Special thanks to Nili Gilbert, CFA, CAIA, Vice Chairwoman of Carbon Direct, for her valuable feedback and suggestions.
See PDF for full write-up.
Please see PDF for important disclosures.