About > Market
Our Market
- unlocking the trillion-dollar low-carbon economy*
Lord Stern and Al Gore showed us the risks of not doing anything about climate change. We see climate change as an economic opportunity,
offering the world a new unprecedented movement that will usher in the “Third
Industrial Revolution”.
In 2008, Climate Capital Network
has conducted research, based on several key economic trends, political
factors, and industry research reports, that gives us a good indication
of the scale and size of this "Third Industrial Revolution". According
to us, this new economic movement is valued at several trillions of dollars in the next few years*. (Please see below for some indicators and reports used).
We see climate change as an economic opportunity, not a cost. Climate change is mainly caused by seven economic sectors
(i.e. energy, agriculture, transportation,
construction, waste/water, industry, forestation/land use). And in
order to successfully lead this 'Third Industrial Revolution' we will
have to massively increase capital flow in those seven sectors.
Therefore, we aim to channel investments in any products/services/technologies
reducing or compensating greenhouse gases (e.g. renewable energy, clean
technology, energy efficiency, forestation, etc…) that help grow the global economy in a more sustainable way.
Economic sectors contributing to climate change:
*Our research (2008) has been based on the following reports and these key political,
industrial, scientific and economical factors:
- Rising Energy Demand - Spending on global supply infrastructure will exceed $15 trillion through 2030 according to the International Energy Agency.
- Breaking the Climate Deadlock - The Climate Group http://www.theclimategroup.org/index.php/special_projects/breaking_the_climate_deadlock/
- Towards a Global Climate Deal - Lord Stern at the London School of Economics http://www.lse.ac.uk/collections/granthamInstitute/
- Global atmospheric CO2 concentration - The UN International Panel on Climate Change report that was
released during Bali in 2007 showed that we are maybe already at the tipping
point of atmospheric CO2 concentration.
- Stern Review - The Stern Review suggests committing 1% of GDP ($350-480billion/year) to cut carbon emissions.
- UNEP - UNEP's Sustainable Energy Finance Initiative report last year
underlined how capital is mobilizing towards these low carbon sectors,
with total transactions surpassing the $100 billion milestone in 2006
and reaching nearly $160 billion in 2007
- UNFCCC - The United Nations Framework Convention on Climate Change says that to mitigate climate change, we would need, until 2030, ($200billion/year) or 0.3% of global GDP.
- Energy productivity/efficiency -The McKinsey Global Institute has indicated that we must invest $170 billion/year until 2020, to reduce global energy demand by half.
- Renewable energy - According to Ernst & Young global investment in renewable energy could reach US$750bn within the next ten years. US bank Morgan Stanley estimates the US market for clean energy sources—like wind, solar, geothermal, and biofuels—could top $1 trillion by 2030.
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- Institutional investors – Investors are more and more concerned about the
effects of climate change on investment decision-making. This is why the Carbon
Disclosure Project, an organization representing over $41 trillion in assets,
is asking for more action on climate change and the full disclosure of carbon
emissions by all FT500 companies.
- New US President – Obama hase a proactive
climate change policy; with a new administration that reflects that and a promis to invest up to $150 billion over 10 years in the low-carbon economy.
- Consumers – More and more consumers are becoming
carbon-conscious. This has led to a dramatic increase in purchases of
low-carbon goods, which was worth £4.1b in the UK alone in 2006 according to the Co-operative Bank.
- Clean technology – The technologies available are becoming more and
more prevalent and market-competitive. According to Cleantech.com,
investors poured more than $8billion in 2008 in cleantech.