Investment Strategies to slow Climate Change


To what extent can financial backers help stabilize the climate by working toward a "net-zero" future in which all emissions are either eliminated or offset by carbon removal? Here is a set of strategies that employ GHG reduction, elimination, and retrofitting — to cope with climate change — alongside investments to cut carbon emissions in the energy supply.

Climate investing


One of the primary goals of climate investment has been to lower emissions through measures like decarbonizing the electricity sector. However, lesser-known opportunities exist to lower energy consumption and revamp other (non energy) carbon-intensive operations.

Increasing renewable energy output and storage is one way to decarbonize the energy supply. Renewable Portfolio Standards are a market-based regulation that encourages utilities to increase their use of renewable energy sources.

Reducing energy use has multiple benefits, including lowering emissions (particularly in the near future, before the electric grid depends on clean energy sources) and saving money on operational costs.

Changes to carbon-intensive processes, such as using lower-carbon cement formulation, discovering raw materials that can replace oil and gas (e.g., polymers, fertilizer), and boosting resource efficiency more generally, are all required to lessen the need for raw materials, promoting more recycling, and establish a value chain.


When carbon-neutral alternatives are not readily available, carbon removal is the only way to achieve a net-zero impact. The removal (sequestration) of excess greenhouse gas emissions from the environment can be accomplished in two ways: mechanically and naturally. In addition, the ocean, which soaks up carbon dioxide, can also be used to mitigate climate change.

Natural sequestration of carbon

Trees, vegetation, soils, and even plankton are all great places for storing carbon. Currently, there are investable timber products available thanks to the development of the forestry industry.

Standards for confirming carbon extraction are still developing, although nonprofits, private donors, and governments have funded the creation of various nature-based projects (such as mangroves and kelp).

Disposal of Carbon by Mechanical Means:

Carbon sequestration is a new field of study, either by burying it or incorporating it into innovative materials. The Carbon Negative Shot was launched by U.S. Department of Energy recently to bring the price of mechanical carbon removal to $100 per metric ton (tCO2e). A similar initiative was created for solar energy over ten years ago. The current solar industry's growth provides hope that these efforts will eventually pay off.

Water efficiency

Droughts, shifting precipitation patterns, and overexploitation of groundwater sources pose threats to water availability and must be addressed. 

Rethinking Farming and Food Production

As a result of population increase and lifestyle choices, the world will need significantly more food by 2050, calling for a quantum leap in agricultural output. Simultaneously, regional productivity is under pressure due to water and arable land constraint. To sustainably feed more people, agriculture must adjust to new weather patterns.

Man-made structures

Costly climate-related disruptions can be avoided with the right investments in infrastructure. Buildings and infrastructure, which often last for decades, need to be constructed or upgraded to resist future climate conditions and those brought on by current climate change.