Financial Markets and Impact Investments as Accelerators toward Net-Zero targets

More than 40 years of Climate Change debate and partial actions have not translated into transformative impact. Annual LMICs’ adaptation costs are in a plausible range of US$ 215B to 387B annually within the current decade.
Cognizant that the Climate problem must now be tackled head-on, the opportunity exists to harness the power of markets, as these markets are recognizing the immense investment potential – and for risk-adjusted returns – in adaptation at levels never previously experienced.
Markets play a major role in addressing the Climate issue, with blended finance centrally positioned to play an out-sized role and close the adaptation funding gap, leverage PE Financing to complement Concessionary Finance. As Public Impact Funds seek highly scaled mature solutions, Private Equity Financing is well-placed to invest in early-stage innovation as their appetite for investing in cutting-edge innovations can catalyse and shape the green-and-just transitions. This provides a chance for independent private investment firms with sector-specific specialized knowledge to find the right opportunities.


Accelerated progress to net zero can be catalyzed through public-private partnerships (PPPs) that can bring together substantial volumes of capital from private investors keen to support climate response but may have a different risk appetite as they are still building the risk assessment and analysis capabilities for Climate Change sector, governments, multilateral development banks, export-credit agencies, and regional development banks all have different risk appetites but equally strong commitment to climate issues.