Global investment bank Goldman Sachs says that while the world's attention has focused on the need for reduction of Carbon emissions, investors should pay attention to inevitable changes, and investment opportunites in adaptation.
Focus on Cities
Cities are home to 50 percent of the world’s population and generate approximately 80 percent of global GDP. Climate change effects such as extreme weather events will take an enormous toll on cities and their adaptation efforts “could drive one of the largest infrastructure build-outs in history".
“Greater resilience will likely require extensive urban planning, with investments in coastal protections, climate-resilient construction, more robust infrastructure, upgraded water and waste-management systems, energy resilience and stronger communications and transportation systems.”
The bank’s report is a collection of data and analysis on climate change from well-known sources, such as the Intergovernmental Panel on Climate Change (IPCC), combined with a detailed list of expected impacts on cities.
The report suggests that rising temperatures, more frequent and intense storms, and rising sea levels would affect economic activity, damage infrastructure and harm vulnerable residents.
And therein rests the investment opportunity.
Goldman Sachs calls for the need for innovative sources of financing and new ways to think about investment in urban areas that cope with longer-range resilience solutions.
OK, over to you, Goldman Sachs.