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March 20, 2024

Investing in Adaptation Solutions: A “Must Listen!”

Mark Trexler

The recent Climate Rising podcast (Harvard Business School) with Mike Toffel and the The Lightsmith Group's Jay Koh focusing on investing in adaptation solutions is ABSOLUTELY worth a listen. A couple of Jay's final points:

🌍 If you believe the science, you actually have more certainty and conviction about the path and the increasing risk and impact of climate change than many other things about which you actually make investment decisions. You know more about how climate change is going to unfold than you do about the path of inflation, interest rates, consumer behavior, artificial intelligence, the likely next date for Taylor Swift. And so, in that context, there is an enormous amount that we can do to begin to invest around that conviction.

🌎 Climate change will continue to unfold at an accelerating rate, and the demand for technologies and solutions to understand and manage that, will be dramatically higher between now and 2030. So that investment certainty or conviction is something that you should start to think about expressing. Your current 401K or your pension fund probably is set up to basically express the view that the delta is zero, that there is no change that's going to happen as a result of all this climate impact.

🌏 Climate change resilience and adaptation is not just this risk and impact, but an opportunity. It's an opportunity for entrepreneurs and technologists and investors to understand that this is a major shift that's going to happen, an inevitable transition, between now and 2030. And we're fighting for the trajectory after that. And whoever figures out how to analyze these risks and impacts and how to manage them or even transcend them, will build billion dollar plus companies. And you want them to build billion dollar companies.

🌏 There will be a Tesla motors of adaptation and climate resilience that will help you have much more reliable and much more resilient water, food, transportation, energy, shelter, health care. And that class of today's entrepreneurs or today's technologists that solves that problem will generate massive amounts of wealth. And you want them to. You want scalable solutions, you want multibillion dollar size solutions to the multitrillion dollar challenge that we're creating because of the effects of climate change.

Jay's points are something I'm increasingly seeing as the future, and the podcast is a great overview and introduction if you're not already tracking this space.

earth inside a clock showing 4 minutes to midnight with a tinge of fire at the end of the minute hand

Images courtesy of Geralt at Pixabay.



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Mark Trexler


Mark has more than 30 years of regulatory and energy policy experience. He has advised clients around the world on climate change risk and risk management. He is widely published on business risk management topics surrounding climate change, including in the design and deployment of carbon markets. Mark has served as a lead author for the IPCC and holds advanced degrees from the University of California at Berkeley.

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