Pictured: Arborea, the company developing technology capable of feeding the world with minimal land and water use.
COP30 is undoubtedly a pivotal moment, but the accelerating impacts of climate change—rising costs, food inflation, and economic shocks—are making every day more critical for urgent climate action.
Food inflation in the UK, where prices for butter, beef, milk, coffee, and chocolate—all climate-exposed products and staples of the typical shopping basket—rose 15.6% in the past year, exemplifies how environmental disruptions are hitting consumers directly. Global GDP is under threat as climate impacts intensify, with each 1°C rise potentially cutting 12% from global GDP.
Yet despite a difficult political backdrop at Belem this year, there is hope that progress relies not only on political consensus, but increasingly on the creativity and leadership of investors and entrepreneurs. At the global scale, we have the opportunity to unlock up to $26 trillion in growth by 2030 by investing in climate-smart technologies and solutions.
It’s no wonder then that millions of people around the world have already decided to be part of the solution. They are stepping away from extractive legacy businesses that socialise externalities and live off multi-trillion dollar public subsidies (for example, by not paying for their carbon emissions despite its direct link to economic and health damage) and are dedicating their time and energy instead to driving forward viable, scalable, profitable, and innovative solutions to our biggest challenges. Investors and entrepreneurs are a huge part of this change, and it would be self-defeating for politicians to try and stop it.
The Mounting Cost of Inaction
Extreme weather, persistent droughts, and record temperatures have made 2025 one of the hottest years on record, causing massive social and economic disruption worldwide. Insurance premiums and the cost of damage are climbing, with extreme weather alone accounting for over $300 billion in damages last year. As natural ecosystems weaken, food supply chains become more brittle, driving up prices and exposing markets to volatility—visible in the spike of basic goods in the UK and reflected globally in soaring agricultural costs.
Each day of delay means productivity losses, heightened migration pressures, and increased threats to health and welfare. These trends underscore a growing risk to economic stability—one that multiplies as the climate crisis intensifies.
Political Drift and the Power of Innovation
Political leadership has struggled to keep pace with the crisis. Only one-third of nations have submitted updated climate plans ahead of COP30, falling short of their Paris Agreement obligations. Consensus at summits is challenged by national interests and short-term priorities. Yet, history offers hope beyond politics: the Nobel Prize-winning work of Joel Mokyr, Philippe Aghion, and Peter Howitt shows that long-run growth and progress hinge on harnessing new ideas, nurturing innovation, and driving technological transformation—not only responding to policy.
This lesson is urgently relevant as societies confront cascading challenges—climate, nature loss, migration. If ecosystems collapse, food inflation and scarcity only get worse, deepening poverty and inequality. When the world overheats, productivity stalls and economic resilience falters.
The Case for Investment
The economic argument for climate action is thus stronger than ever. According to a major World Resources Institute study, every $1 invested in climate adaptation and resilience generates over $10 in benefits within ten years — and some sectors, like health, can deliver returns of more than 78%. Across 320 projects in 12 countries, adaptation investments ranging from disaster risk management to climate-smart agriculture delivered average returns of 27%, amounting to more than $1.4 trillion in value.
Crucially, these investments offer a “triple dividend”:
- Avoided losses from climate disasters
- Induced economic gains, such as job creation and increased crop yields
- Broader social and environmental benefits like improved health and biodiversity
Over half of these documented benefits accrue even if climate disasters do not occur, revealing that climate investments pay off daily by boosting local economies, creating jobs, and strengthening health systems.
Impact on Human Welfare and Health
Climate investments are not just about emissions—they are intertwined with human development and welfare:
Nearly half of adaptation investments also cut greenhouse gas emissions, creating a “win-win” for climate and development with projects in energy, forestry, transport, cities, and agriculture.
Investments in adaptation are strongly linked to poverty eradication, better health outcomes, and increased resilience in the world’s most vulnerable communities. Sectors like public health see exceptionally high returns simply by reducing avoidable deaths from heatwaves, malaria, and dengue fever.
Infrastructure for extreme weather resilience often delivers year-round value: for example, new irrigation systems improve food security even during good years.
These co-benefits demonstrate that climate investments advance multiple SDGs simultaneously, including goals on health, poverty, hunger, and economic growth.
Investors as Agents of Change
In this context, investors hold the key to unlocking the technological progress needed most. Public resources, while crucial, are insufficient to finance the full transition. The opportunity—and the responsibility—for private capital lies in discovering, developing, and scaling solutions that safeguard nature, stabilize food systems, and build resilient supply chains.
Innovation in climate-smart agriculture, renewable energy, and nature restoration is already creating millions of jobs and driving new economic growth in leading countries. Accelerating this momentum, particularly by investing in breakthrough technologies and business models, is essential to staving off the worst impacts and capturing the dividends of a healthy, secure future.
Technological innovation—led by investors and innovators—can cut emissions, build resilience, and transform entire industries—and the potential returns are substantial. In fact, as a Schroders and Oxford study recently demonstrated, investing for impact actually outperforms the market. This is not just about “feeling good” but is also about creating scalable value and returns.
And as successful companies scale, so do the impacts linked to them. Investors who champion ingenuity and back high-impact solutions can drive progress on the most pressing challenges, from heat-resistant crops to resilient infrastructure. Climate and nature investing is now linked to improvements in human welfare and health, supply chain stability, and poverty reduction, delivering a triple dividend of fewer losses, stronger economies, and healthier societies.
Conclusion: Innovation as Destiny
COP30 is indeed important, offering a global stage for ambitious commitments—but the real engine of progress lies in innovation and investment. The world cannot afford to wait for political breakthroughs alone; history proves that meaningful change comes from discovering new solutions, unleashing technological progress, and harnessing the creative power of investors.
Leaders in finance and business are now called to champion breakthroughs that matter most in the fight against climate and nature crises, regardless of what happens at COP30. Every investment into resilient food systems, clean energy, and ecosystem restoration lifts communities, protects economies, and accelerates progress against humanity’s greatest risks.
With each passing moment, the stakes rise. But so does the opportunity to invest for a better future—one that depends not solely on politics, but on the ingenuity, resolve, and capital of those ready to champion the next wave of solutions.
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