Future of growth is green, Nature Conservancy says at COP29
Climate action is becoming a key driver of investment opportunities as the world faces escalating climate risks, Clare Shakya, global managing director of climate at The Nature Conservancy, argued at COP29 in Azerbaijan.
She presented a forward-thinking vision where the green transition leads to both environmental and economic prosperity.
“Really good science is only part of what is needed to convince people to take action. You also need a sense of aspiration, to be able to see what the future holds,” Shakya said. “Will the changes actually be good for your pocket and well-being?”
For Shakya, fear-driven messaging should give way to a focus on the economic and social gains from climate solutions. By reframing the climate change conversation as an opportunity for growth and innovation, businesses and policymakers can paint a picture of a thriving green economy.
“We need to be able to tell a positive story,” Shakya stated. “This is how we will thrive. There will be different jobs and new possibilities in the green economy.” The sustainability advocate was speaking at a panel discussion called “Hard Truths: Navigating Sustainability and Climate” at the Singapore Pavillion at the annual gathering of the United Nations Climate Change Conference.
Numbers tell the story. With global energy investment set to top $3 trillion for the first time in 2024, a whopping $2 trillion is going into clean energy technologies and infrastructure. Investment in clean energy has been accelerating since 2020, and spending on renewable power, grids and storage is now higher than total spending on oil, gas, and coal, according to the International Energy Agency.
Meanwhile, the transition to clean energy is expected to generate 10.3 million net new jobs globally by 2030, according to the World Economic Forum. The new jobs are projected to offset the 2.7 million jobs expected to be lost in fossil fuel sectors.
“It’s not just about surviving; it’s about thriving,” Shakya said.
LOOKING AT SOLUTIONS
Within the world of carbon markets and credits, challenges exist in terms of distinguishing between carbon removal and reduction strategies, a point of critical importance for investors looking at carbon offset investments, according to Shakya.
"Removals are very important, but there are so many elements within the avoided conversions that actually are removals," Shakya explained. "This ambiguity makes it difficult to give a simple answer."
This complexity underscores the need for clearer frameworks to help investors assess the risk and return on nature-based investments, she said.
Investments in nature-based solutions, such as large-scale reforestation or soil carbon sequestration, can offer promising returns. Green Policy Platform, a knowledge-sharing initiative, estimates that funding for nature-related UN Sustainable Development Goals delivers more than 20-times returns on investment.
Shakya highlighted the transformative potential of the energy transition, emphasising how the decentralisation of energy systems has created significant investment opportunities in energy infrastructure.
"What we’re seeing is a devolution of energy systems. Consumers can now also be producers and sellers of energy, and that democratises the entire energy system," Shakya said.
Sectors such as solar technologies and energy storage solutions now offer opportunities, while the energy storage-system market is forecast to grow steadily between 2024 and 2031 with a compound annual growth rate of approximately 9% globally, according to Statista. Energy storage systems worldwide accounted for a market worth $256 billion in 2023, and is projected to reach over $506.5 billion by 2031.
EMERGING MARKETS
The increasing role of developing countries in advancing climate action has also been notable. Despite limited financial resources, these countries have been leading the charge on green policies, positioning themselves as leaders in the global energy transition, Shakya said.
"There is more leadership from the developing world than the developed world," said the advocate. "There are radical governments that have set net-zero targets ahead of their ability to afford it. But they are driven by the belief that this is existential for them."
By extension, the search for opportunities has begun to carry investors beyond traditional markets and into high-growth regions adopting sustainable practices. By collaborating with governments and local businesses, investors can access sectors such as clean energy, sustainable agriculture, and green infrastructure.
Shakya stressed the need for governments to create stable policy environments in order to encourage investment in climate solutions.
"Governments need to set really long-term targets," she said.