TORONTO—Investments in new, green technologies could top $5 trillion in the next 20 years, according to a recent report by Mercer, a global consulting firm.
The report looked at worldwide investment risks and opportunities related to climate change. It found that policy changes could ramp up the cost of carbon emissions by as much as $8 trillion.
Investors should engage with companies to request improved disclosure on their climate change risks, including emissions levels and sustainability management policies and practices, the report said.
They can also mitigate risks and capture new opportunities by allocating funds into climate-sensitive assets such as new carbon-cutting technologies.
The report estimates that by 2030, investments in renewable energy, biofuels, nuclear and carbon capture storage could range from $3 trillion to $5 trillion.
As for where that activity will be, some areas of the world are moving faster than others.
The European Union, China and East Asia are leading when it comes to carbon-related policy mechanisms, but other regions such as Russia are failing to respond, the report found.
The US, India, South Asia and Japan fall “somewhere in the middle.”