‘It’s a tsunami’: Why finance is ‘going green’ and what you should know about it
Global News
Investors are looking at 'green' financial products as a way to mitigate the worst effects of climate change while growing their portfolios and developing a sustainable economy.
From extreme floods in British Columbia, to severe storms in Toronto and in Atlantic Canada, many Canadians experienced a year of climate-fueled weather havoc in 2021.
As 2022 kicks off, fear of an ever-worsening climate crisis is encouraging more and more and more consumers – along with big investors – to think about conscious, or ‘green’ investing.
For years, scientists have warned of the impending dangers from the unabated burning of fossil fuels. Now, as climate change accelerates to the point of causing irreversible damage to people and the planet, the world of finance is latching on to the urgent need to transition to more sustainable investment solutions – ones that won’t pollute air, water and soil or cost trillions to clean up.
The upshot?
There is lots of money to be made, and investors are getting in on the action.
“It’s a tsunami compared to what was around a few years ago,” says Tom Rand, a managing partner at ArcTern Venture Capital in Toronto, and author of The Case for Climate Capitalism.
In 2020, green investments rose to $35.3-trillion U.S. in the world’s five biggest financial markets – the United States, Europe, Australasia, Japan and Canada. That sum represented more than a third of all assets in those big markets. Investments in Canada had the biggest growth – a 48 per cent increase over two years.
There is no doubt a shift is happening.