Climate policy has become increasingly politicised, and some countries are either rolling back or challenging their climate targets. This political noise can create uncertainty and volatility. But beneath the headlines, the heartbeat is still strong: climate solutions are reaching economic tipping points as renewable energy is now often a competitive source of new power. Over the past decade, the cost of solar and onshore wind energy has plummeted by more than 80 percent and nearly 70 percent, respectively. Electric vehicles are nearing cost parity with internal combustion engines. Energy efficiency retrofits can offer short-term paybacks in commercial real estate.

These shifts are increasingly driven by economics, not just policy, and we have yet to observe any major reversals of this trend. In fact, we believe that political volatility can create investment opportunities. As uncertainty spooks some investors, quality climate solution providers may temporarily trade at discounted valuations, creating attractive entry points for those seeking structural growth over the coming decades.

Much of the conversation around climate investing tends to focus on private markets – and rightly so. Their role in providing innovation the room to breathe and giving investors a seat at the board room table is critical. Private markets take on the role of enablers and hands-on partners to enable transformations, improvements and projects which require significant capital expenditure. This kind of support is especially important in areas where infrastructure needs and high upfront costs might slow progress.

Read the full ‘Sponsored Commentary’ now at the link below