By Mike Bloomberg & David M. Solomon
Capital markets are an extraordinarily powerful tool in the fight against climate change. Government action is certainly critical. But ultimately, reducing emissions globally depends on the private sector recognizing the commercial opportunities that sustainability presents. That’s the inspiration behind a new partnership we are announcing today.
Together, Bloomberg LP, Bloomberg Philanthropies and Goldman Sachs will make a meaningful contribution to the transition to net zero emissions by helping more businesses and investors capitalize on the opportunities that come with the move to clean energy. We’ll do this using two tools that are core to our organizations: capital and data.
First, we will harness investor demand to direct more capital toward climate transition investments where the need is most acute: in developing markets. By marshaling more capital to finance clean-energy projects, we will be able to support nations and their utilities in their transition from fossil fuels to renewable power. This will both help build a more resilient economy and improve public health.
Developing markets are especially critical because the global pandemic has set back clean-energy investment there, as the latest report of the Climate Finance Leadership Initiative shows. While green energy investment in high-income markets increased by more than 20% last year, in developing markets it decreased by more than 20% — and there was hardly any to begin with. Lower-middle-income and low-income countries that account for half the world’s population receive just 5% and .3%, respectively, of global clean-energy investment.