Accelerating the Capital Solution to Climate Change

Vol. 22, No. 1, 2024
Yu (Ben) Meng, Anne Simpson, Anna Snider and Christina Yi

The missing “I’s” of information and incentives have restrained the potential of the capital markets in previous decades to respond to the growing demand for climate solutions. Progress on both fronts in recent years, however, is moving us rapidly beyond an inflection point in climate investing to its turning point. In this article, the authors build upon previous work to examine this progress as well as analyse the potential for an enhanced return—a “greenium”—from investments in the transition to a low-carbon economy.