It’s a truly mouthwatering figure. By 2030, around $93 trillion will have to be invested around the world on projects to halt or limit global warming.
That’s how much it will take for governments to keep their promise made in Paris last December to prevent global temperatures from rising more than 1.5 degrees Celsius, according to Jeremy Oppenheim, the head of the Initiative New Climate Economy.
The projects represent a “one-time opportunity” for investors, Mr. Oppenheim said Monday at the Berlin Investment Forum hosted by the daily newspaper Tagesspiegel, a sister publication of Handelsblatt Global Edition in Berlin.
Mr. Oppenheim is not the only one who’s convinced. An increasing number of investors around the world believe they can earn money and do something good for the climate at the same time.
It’s called “impact investing” or “divesting,” and it means pulling your money out of coal, oil, natural gas or other fossil fuels and investing in “green” instead. Some 500 organizations and funds around the world have committed $3.5 trillion to divestment so far.
“We’re not alone anymore,” said Charly Kleissner, the founder of the KL Felicitas Foundation, which pioneered impact investing in the early part of the last decade. “The next generation is all in.”
The optimism is not shared by everyone, however. Established players say they are wary of putting all of their eggs in the green energy basket.
Many point to Germany’s struggles with a closely-watched transition to renewable energy as a sign that not everything is quite so rosy.