Can we push Earth's deadline?
We are the first generation to feel the effect of climate change and the last generation who can do something about it.
WRITTEN BY AVINASH VASHISTHA
PUBLISHED FEB 21, 2023
Barack Obama once remarked, “We are the first generation to feel the effect of climate change and the last generation who can do something about it.” Many like the Former US President, have asserted that the world no longer has the luxury of time, and that the window of opportunity is rapidly closing.
As the world's fate hangs in the balance, due to climate change, there is mounting pressure on large stakeholders such as governments and big corporations to change their modus operandi and drastically cut their carbon emissions. One industry that's emerging as a key player in this movement is the banking industry.
The global climate tech market is a rapidly growing, with technologies and solutions aimed at mitigating and adapting to climate change. Market solutions include a wide range of technologies, from renewable energy, energy efficiency, carbon capture, storage, sustainable agriculture, and circular economy solutions.
According to a report by the International Finance Corporation, the market size for climate tech solutions is currently estimated to be $1.5 trillion and is expected to reach $3 trillion by 2030. This growth is being driven by increasing awareness of the urgent need to address climate change, as well as government policies and incentives aimed at promoting the development and deployment of climate tech solutions.
Here are some of the countries at the forefront of this industry, leading the way in the global fight against climate change.
Sweden: Sweden aims to achieve net-zero emissions by 2045. They are already well on their way, with 98% of their electricity coming from renewable sources in 2020. They are also investing in new technologies like carbon capture and storage, and they are leading the way in sustainable transportation with companies like Volvo.
Canada: Canada has set a goal of achieving net-zero emissions by 2050. The country is investing heavily in renewable energy, with a target of generating 90% of its electricity from non-emitting sources by 2030. Canada is also a leader in carbon capture and storage technology and is home to several innovative climate tech companies, such as CarbonCure and Eavor Technologies.
Germany: Germany has set a goal of achieving net-zero emissions by 2045. The country is investing heavily in renewable energy, with a target of generating 80% of its electricity from renewable sources by 2050. Germany is also a leader in green hydrogen production, and is home to several innovative climate tech companies, such as Sonnen and Eneco.
United States of America: The United States has set a goal to reach net-zero emissions by 2050. According to the International Energy Agency (IEA), the country's renewable energy capacity is set to grow by 50% by 2024, with solar power leading the way. In 2020, solar power installations in the US increased by 43%, making it the second-largest solar market in the world after China.
India: With a goal of achieving net-zero emissions by 2070, India is investing heavily in renewable energy sources, including wind, solar, and hydropower. The country has set a target of generating 40% of its total electricity from non-fossil fuel sources by 2030. India is already a global leader in solar power, with installations of over 4.1 GW in 2020 alone, ranking fifth in the world.
In addition to the efforts of governments, entrepreneurs and investors are increasingly turning their attention to the climate tech market, with many new investment funds and companies taking the lead in this space.
One such company, Recyclink is revolutionizing the Climate Action industry by merging ClimateTech with FinTech, creating a unique and powerful solution to combat climate change. Their innovative platform offers Sustainability-as-a-Service to banks worldwide, enabling them to calculate Carbon Footprints based on Payment Transaction Data. This allows banks across the globe to provide Net Zero financial products to millions of their individual and business customers, empowering them to take direct climate action.
2021 was a landmark year, with significant equity investments in Climate Tech:
Equity investments in Climate Tech in United States: $23.7 billion
Equity investments in Climate Tech in Germany: $8.2 billion
Equity investments in Climate Tech in India: $7.0 billion
Equity investments in Climate Tech in Canada: $5.7 billion
Equity investments in Climate Tech in Sweden: $3.4 billion
As the world strives towards achieving the goal of net zero emissions, banks are emerging as key players in this transition. Banks are responsible for collecting, analyzing, and disseminating data related to sustainable finance. They play a crucial role in financing the transition to a low-carbon economy, and they have the power to drive change by investing in sustainable projects and providing loans to green businesses. Furthermore, they are also responsible for setting standards for environmental, social, and governance (ESG) reporting, which is essential for measuring progress towards net zero goals. Overall, banks are well-positioned to act as custodians of green energy and play a critical role in tracking progress towards achieving net-zero goals. By leveraging their resources and expertise, banks can help to drive the transition to a more sustainable future and promote the widespread adoption of renewable energy sources.