COP27: Despite progress, much greater financial support for climate innovations is needed, says DAI Magister
ACCORDING to research estimates, total investments in energy, innovations and climate adaptation, etc. start at $3.5 trillion per year, increasing to $7 trillion in subsequent years to reach our 2050 net zero goal.
In this context, investing in start-ups and growing companies offering climate-related technologies is crucial in the fight against climate change. Despite progress, finance and entrepreneurial talent are still the missing key to making positive steps towards climate action, says boutique investment bank, DAI Magister.
According to recent findings from “Investing in the Green Economy 2022”, a report by the research arm of the London Stock Exchange, the market capitalization of green stocks has grown from less than $2 trillion in 2009 to more than 7 $100 billion in 2021. innovative companies in recent years (a 100% growth to just under $100 billion invested in 2021) mirrors a similar boom in investment in technology companies over the past decade – including some are now the most influential companies in the market.
Marc Deschamps, Co-Head of DAI Magister, said: “The economic realities of climate change make a compelling investment case for entrepreneurs and large venture capitalists, private equity funds and family offices are jumping in quickly. . But despite this, DAI Magister believes there is still a long way to go before companies and start-ups focused on climate technologies can achieve their goals.
Similarly, recent years have seen “environmental, social and governance” concerns come to the fore and center of institutional finance more generally. A COP26 coalition of representatives from private equity, pension funds and banks has pledged to use the $130 trillion at its disposal to fight climate change.
Marc is set to represent DAI Magister at this year’s COP27 in Egypt and said, “I look forward to meeting our climate tech entrepreneurs and private equity peers. Our dynamic is a key element of the solution.
“Companies that harness renewable energy, support clean water and reduce dependence on traditional fossil fuels are gaining momentum, which means the markets and the people who drive them are finally starting to address the climate crisis. It means putting people and the planet first.
“While there has been a lot of interest in investing in start-ups and growth companies delivering climate-related technologies and innovations, financiers and investors need to do more if we are to unlock the potential of this climate. technology. Increasing funding for innovations around the world is essential, as is funding for pioneering projects and projects in emerging markets where the path to stable returns on investment is less defined. Therefore, the government sector must be the catalyst here.
The 2022 United Nations Climate Change Conference, known as COP27, takes place from Sunday 6 to Friday 18 November 2022 in Sharm el-Sheikh, Egypt. This year’s conference marks the 30th anniversary of the adoption of the United Nations Framework Convention on Climate Change.
COP27 theme days will include Decarbonization Day, Energy Day, Science Day and Finance Day.
Marc added: “It is encouraging to see finance taking such a central place at COP27 and it could be the catalyst that will support greater investment in climate technology. This will be an opportunity for the ESG and cleantech investor community, but also for private equity funds in general, to speak out, highlight the current obstacles facing climate-focused finance and suggest how the financial community can better provide forward-looking solutions. funding.
“The importance of finance as a tool for change in the climate change agenda was highlighted in Glasgow during COP26, so we look forward to hearing from industry leaders and delegates on the latest innovations, tools and financial policies that will support climate action and the delivery of a greener future.