“If you just look at the energy sector, we need about a trillion a year,” Barbara Buchner says about the gap between between our climate goals and the amount of investment in developing solutions.
To spur those needed investments, Buchner’s group, The Lab, just launched a new crop of projects aimed at making it easier for investors to put money into green investments. Projects include partnerships between hydropower operators and land conservation and restoration efforts and “climate smart” cattle ranching initiatives in Brazil, as well as more esoteric exploits in private equity and cleantech development.
There are three main barriers that keep investors away from innovative projects, Buchner says: lack of knowledge of new projects, perception of higher risk, and an unwillingness to go in alone on unproven projects.
Breaking down these barriers is important because that climate investment gap can’t be closed by government spending alone.
“It’s the backbone, it’s the engine behind overall climate finance,” Buchner says of these early, targeted projects by governments and non-governmental organizations. “But the private sector [investors] really are the ones that make the difference.”
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