Welcome to “Fridays with Scott” segment of the Climate Change program.
In my previous Friday episodes, I discussed the demand and investment appetite for clean energy.
But it’s not only renewables that investors are putting their money in. As the world grapples with a second straight year of record hurricanes, floods and wildfires, a small but growing number of hedge funds, pension plans and other investors are looking to invest in climate change adaptation and response. While mitigation addresses the root causes, adaptation seeks to lower the risks from the severe consequences of climate change.
The investments include storm and flood protection along the coast such as massive sea walls. Others are accepting the Dutch concept of living with water and are turning to system of waterfront parks, elevation of flood-prone zones, water dams and channels and expanded wetlands. Climate change adaptation investments also include desalination plants in drought-prone regions, offshore wind farms that could weaken hurricanes, new approaches to agriculture such as indoor vertical farming and land far from coastal cities for when rising seas shift the real estate market. And these investors expect high returns.
Stay tuned next Friday as we observe World Water Day and the following Friday thereafter, I will discuss the economic forces to switch to renewables.
