Environmental affordability: Climate crisis costs $391million per day

Despite stratospheric numbers, the real social and economic price is primed to increase in the coming years without investment boost.

Climate tech fund 2150 is calling on the finance community, governments and regulators to take more decisive steps to expedite funding routes for environmental innovations and projects.  

According to research published in the journal Nature Communications, the climate crisis is now costing the global economy $391million per day, with the price tag mounting by the year – making inaction more detrimental to growth than investment. 

‘Some have suggested that we cannot afford the green transition to net zero. They are right in that it will be a massive undertaking and will require unprecedented investor action, but let’s be clear about what the alternative is,’ said Christian Hernandez, partner and co-founder of 2150. ‘Costs will continue to grow, while commercial opportunities will be lost to rising sea levels, lost and displaced human capital, and days too hot to work. This world is not inevitable; the technological solutions exist to mitigate, adapt, and resist the worst elements of the climate crisis.’

While the sustainability, scientific, climate engineering and tech communities have repeatedly pointed to the urgent need for more capital, and environmental disasters continue to dominate headlines, Price Waterhouse Cooper (PwC) recently reported that grants and investment in climate action dropped 40% year-on-year. Meanwhile, the number of private investors considering environment, social and governance before choosing where to direct funds has fallen from two-thirds in 2021, to 53%, and the number of large companies reporting sustainability as a high priority is now at its lowest level since the pandemic began. 

‘In reducing their efforts to invest in climate mitigation and resilience, all businesses are doing is deferring payment on an ever-growing bill. Furthermore, investors miss out on the myriad of commercially viable, sustainable technologies that are being developed every day by ingenious startups that need access to capital ASAP,’ added Hernandez. ‘Let’s remember what sustainability and the S in ESG traditionally stands for; resilient, future-facing business and investor activity to protect current shareholders, stakeholders, and businesses from medium and long-term risks.’

More on climate investment:

How local government pensions are fuelling regional green investment

UK investors prioritise short-term returns over nature outcomes

Cost of European wildfires counted as UN pleas for climate investment