Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe
Features
Series
Themes
Community
Data
Subscribe Log In
More

Disrupted: Investors forced to confront how, and when, to play climate



Climate Finance

Climate disruption is moving faster than most people realize, and “the responses are going to move much faster as well,” Jeremy Grantham, a veteran British investor and co-founder of Grantham, Mayo, & van Otterloo (GMO), told the Financial Times [paywall].

Grantham thinks the Trump administration’s action last week to help polluters could accelerate the market for clean energy and climate solutions. “Doing his absolute worst will galvanise the response,” he says.

It isn’t just the weather that’s changing: government policies, new technologies and shareholder activism are also forcing investors to act on climate.

As climate economics collides with investment activism, the FT notes, “investors are forced to consider both the potential effects of climate change and the weight of money taking account of carbon.”

Unfortunately, the answers aren’t simple, especially when it comes to timing. Some early solar companies, for example, took heavy losses as they pushed supply into a young market.

And coal? “The stranded-asset argument was very strong a few years ago, particularly in relation to coal,” Ewen Cameron Watt, a senior director at BlackRock, told FT. “Then last year you had a massive rise in the coal price.”

This post originally appeared in ImpactAlpha’s daily newsletter. Get The Brief.

Photo Credit: Mark Rain / Veris Wealth Partners

You might also like...