Science-Based Climate Solutions

What's going to close the $7 trillion gap in climate finance? One of my favorite reports each year from Climate Policy Initiative has some ideas for scaling the investments needed to align with a net-zero pathway. To my mind, this is the best report each year on the state of climate finance. It shows you: -Where financial flows are going from (across public and private sources) -Where money is going to (in industry, location, and activity) -What our estimated needs are across sectors and regions -The mitigation potential to unlock across sectors -Strategies for scaling both public and private investment. Here's a look at the sector gaps we are seeing to date and how they can be overcome. Energy systems- need a 2.5-fold increase in mitigation finance to align with average 2024 to 2030 needs. This sector has the highest emissions reduction potential, requiring investment in renewables, grid modernization, and storage solutions. Transport- also requires an almost 2.5-fold increase in mitigation finance, alongside a significant shift away from high-carbon investments. With a mitigation potential of 3.2 GtCO2e, priorities include electric mobility, public transport expansion, and freight decarbonization. Buildings and infrastructure- mitigation finance must rise nearly 4-fold. This is sector is generally climate-aligned, but further investment can realize its 3.2 GtCO2e mitigation potential. Focus areas include efficiency upgrades, sustainable construction, and low-carbon heating and cooling. Industry- a nearly 24-fold mitigation finance increase, along with reallocation from high-carbon activities, is needed to tap the sector's 4.4 GtCO2e abatement potential. Key areas include clean hydrogen, low-emission manufacturing of cement, steel, and ammonia, and carbon capture, and storage. AFOLU- holds great untapped emissions reduction opportunities—mitigation flows should increase 64-fold from USD 18 billion to USD 1,170 billion annually through 2030 to realize this potential. There is also a need to improve definitional boundaries and enhance tracking of finance flows to this sector. Check out the full report here along with the data and dozens of interactive charts: https://lnkd.in/esqBmpfe #climatefinance #climateinvestment #netzero #decarbonization #climatepolicy #climateaction #emissions

Around 200 years ago, writers vividly captured the astonishing abundance of marine life off the British coast. They recounted scenes of vast herring columns, stretching for miles and “so dense that the water itself seemed to bulge and shift as if pushed from below” (William Yarrell, 1836). The sea appeared black with their numbers, a living expanse “teeming with multitudes of fish” (Thomas Pennant, 1766), as far as the eye could see. These immense shoals of herring were trailed by schools of enormous cod, porpoise, spurdog, tope and smooth hound, along with majestic longfin and bluefin tuna. Among them swam the ocean’s formidable predators: blue, porbeagle, thresher and mako sharks, and even the occasional great white. And just beyond this astonishing spectacle, within sight of the shore, pods of fin and sperm whales breached and spouted, a reminder of “the treasures of the deep” and the sea’s great abundance and rich biodiversity (Thomas Pennant, 1766). Today, much of this incredible spectacle of life has disappeared, a result of relentless overfishing and habitat destruction. However, hope remains: marine ecosystems can recover swiftly if we give them a chance. Here’s how we can accelerate this recovery: 1. Expand & Enforce Marine Protected Areas (MPAs): Increase the number and size of MPAs, ban bottom trawling within them (how is this allowed?!) and ensure strict enforcement to safeguard vital ecosystems, allowing marine life to rebound. 2. Promote Sustainable Fishing Practices: Implement and enforce sustainable fishing quotas and methods to prevent overfishing, reduce bycatch and minimise habitat destruction. 3. Restore Key Marine Habitats: Focus on restoring critical habitats like kelp forests, seagrass meadows and oyster reefs, which are essential for supporting diverse marine species (this is a focus for us at Earthly). 4. Reduce Pollution: Combat marine pollution, particularly plastic and chemical runoff, by improving waste management and reducing the use of harmful substances. 5. Address Ocean Warming/Acidification: Mitigate climate change by reducing carbon emissions, helping to slow ocean warming and acidification, both pose a significant threat to marine life. By taking these actions, we can revive the once-thriving marine ecosystems around the British Isles and beyond, and with hope, restore within the coming decades the breathtaking natural spectacles of abundant biodiversity that were once common sights. (Photo: Midjourney) #Biodiversity #Marine #Ecosystem

In this Science study ( 👉 https://lnkd.in/er4CDurn, see also here article in Financial Times about it👉https://lnkd.in/enxcG69K) , researchers analyzed 1,500 climate policies implemented across 41 countries between 1998 and 2022. The goal? To identify which policies truly work in reducing emissions. Here’s what they found: 🔘 Successful Policy Interventions: 63 policies led to significant emission reductions, cutting between 0.6 and 1.8 billion metric tonnes of CO2. ✅ 🔘 Price-Based Instruments: Carbon pricing and emission trading schemes were particularly effective. 💰 🔘 In developed economies, pricing stands out individually, with 20% out of all successful detected interventions being associated with pricing individually. Yet subsidies are the most complementary instrument, especially in combination with pricing (33%). By contrast, in developing economies regulation is the most powerful policy.  🔘 Policy Mixes: Combining policies, especially market-based ones, with regulatory measures led to greater success. 🔄 🔘 Sector-Specific Findings: Different sectors (e.g., buildings, transport) responded better to specific policy types. 🏢🚗 In the FT article, there’s some caution about the findings: it might take longer than the study suggests for policy interventions to show success ⏳. For me, the key takeaways are: 🔹 Policy Mix is Essential: To be truly effective, a combination of policies is necessary 🎯. 🔹 Context Matters: Effective policy mixes vary by sector and economic context 🌍. 🔹 Practical Over Perfect: Instead of seeking the "perfect" policy mix, focus on taking action. It's too complex to aim for perfection—just strive to make a difference 💪.

💡 New developments on the Emissions Trading Systems (ETS): Market Stability Reserve💡 ETS has been the “engine room” of EU climate policy. Mainly thanks to the ETS, domestic emissions in the EU dropped by 39%, while the economy grew by 71%, between 1990 and 2024. Thanks to the ETS, we are less dependent on fossil fuels imports, and less vulnerable to external pressures. So, the ETS needs to continue, while becoming more modern and agile. As we announced, we are planning to do three things: amend the Market Stability Reserve (MSR), update the benchmarks and embark on a larger ETS review in July. This is the plan going forward: 1️⃣Just days after it was agreed at the European Council, today we are starting with what is arguably one of the two smaller steps: the Market Stability Reserve. Under the current system, all allowances in the reserve above 400 million are cancelled. The proposed amendment will stop this, i.e. allowing to keep them as a buffer that can support market stability. 2️⃣ We will soon also update the benchmarks that are used for the allocation of free allocations. 3️⃣ By summer, we will review the ETS. We will look into how to maintain a high level of ambition while ensuring the necessary flexibility for industry, combined with stronger incentives for companies to invest in Europe, with more conditionality on free allocations. The goal is to make ETS fit for the post-2030 period and strengthen it as an investment instrument. And we will do so, keeping the fundamentals intact: its market-based and technology-neutral system. EU Environment and Climate

Even if prices have somewhat recovered recently, a Handelsblatt article from today rightly points out that the falling price of EU Emissions Allowances (EUAs) poses a risk to climate protection. Indeed, we saw a 40% decrease in just 12 months. That is cause for concern, as the EU Emissions Trading System (ETS) is the most important climate protection instrument we have. It is the centrepiece of European climate protection architecture and the most efficient means to reduce emissions at the most effective points. Why has this happened? In short: the EU ETS is currently being used contrary to its purpose to generate EU funds. Through this intervention in the system, market confidence is falling, interest in auctioned volumes is falling, and with it, the prices. And the result is that EU countries have fewer funds available to support and facilitate climate protection projects. This crucial climate protection instrument needs to be protected itself. So, we need to manage this. And there are ways we can, such as key short-term measures for the auctioning of EUAs. For example, maintaining, refusing to increase, the annual EU Allowances to be auctioned in 2024, creating greater transparency around adjustments to EU Allowance auction volumes, or bringing forward the impact assessment of auctioning on the EU Emissions trading system and carbon prices. In the longer term, necessary regulation amendments must also be implemented, suspending monetisation through additional EU Allowances and instead, offering alternatives. These are all measures that can and should be taken to limit this huge impact on the EU Emissions Trading System market and as a result, help ensure that the EU can continue towards its goal of reducing greenhouse gas emissions and reaching climate neutrality by 2050.

Protecting coastal waters may be the best investment you’ve never heard of, says Kristin Rechberger. The ocean has long been treated as the world’s forgotten frontier—out of sight, out of mind, and dangerously overused. Yet efforts to reverse decades of neglect are gaining momentum. Last week saw the launch of Revive Our Ocean, a new initiative helping coastal communities create marine protected areas (MPAs) to restore marine life and local economies. Led by Dynamic Planet with support from National Geographic’s Pristine Seas initiative, the effort comes at a pivotal moment. In 2023, countries agreed to a historic treaty to safeguard ocean biodiversity. But of the 100-plus nations that signed, only 21 have ratified it, with major backers like the United States notably absent. With a 2030 deadline looming to protect 30% of the oceans, Revive Our Ocean’s founders argue that waiting for governments will not be enough. “We’ve seen that marine protection works," says Rechberger, founder of Dynamic Planet and a Mongabay board member. “But progress has been far too slow. To meet 30x30, we would need over 190,000 new protected areas. That’s why we’re focusing on communities—those who know their waters best.” Rechberger’s optimism is based on experience. Over the past decade, Dynamic Planet and Pristine Seas have helped establish 29 of the world’s largest marine reserves, covering nearly 7 million square kilometers, mostly offshore. Now the focus is shifting closer to shore, where coastal populations depend on healthy seas for their livelihoods. Revive Our Ocean aims to equip communities with the tools, policy support, and training needed to establish local MPAs. It blends lessons from past successes with the realities of coastal life. Marine protection near coasts faces three barriers, Rechberger explains: awareness, policy, and know-how. In many places, local governments lack the authority to create MPAs. Even where laws permit it, communities often lack resources or incentives to act. Revive Our Ocean seeks to change that by providing practical support and advocacy, making marine reserves as commonplace as public parks. The economic case is strong. A small MPA can generate significant returns. Spain’s Medes Islands Marine Reserve—just 1 square kilometer—generates €16 million a year in tourism revenue, far surpassing local fishing income. In parts of Mexico, dive tourism now rivals the fishing industry in value. Conservation and economic growth are no longer seen as opposing forces. Reviving marine life can, in fact, revive entire communities. “It’s thrilling," says Rechberger. “Protection drives benefits across multiple sectors, while restoring ecosystems.” Still, the clock is ticking. Only about 8% of the ocean is under some form of protection, and just 3% is fully protected. Revive Our Ocean’s bet: by empowering communities and sharing success stories, marine conservation can catch fire from the ground up. 📰 https://mongabay.cc/BtSSoc

The EU Emissions Trading Scheme (ETS) is under pressure. Our new Frontier Economics & EPICO KlimaInnovation report explores how to reform the EU carbon leakage architecture while keeping the ETS as the key instrument. ❗𝐁𝐚𝐜𝐤𝐠𝐫𝐨𝐮𝐧𝐝 For 20 years, the ETS has been the backbone of EU climate policy. But it is now entering a new phase: the cap is tightening fast (new new certificates after 2039!) and free allocation - long the main tool to protect EU industry from competitors without comparable CO2 pricing - is being phased down. Instead CBAM is being introduced for many sectors. As the 2026 ETS review approaches, rising CO2 & energy costs and global competitiveness pressures are intensifying the debate on how to balance climate ambition with industrial resilience. ⏭️ 𝐎𝐮𝐫 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧𝐬 Our report sets out targeted reforms to strengthen competitiveness and investment certainty without undermining the integrity of the ETS: 🔶 𝐅𝐥𝐞𝐱 𝐌𝐚𝐫𝐤𝐞𝐭 𝐒𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐑𝐞𝐬𝐞𝐫𝐯𝐞 (𝐌𝐒𝐑) As the system shifts from surplus management to structural scarcity, recalibrate the MSR by refraining from automatic cancellation of allowances. 🔶 𝐓𝐢𝐞𝐫𝐞𝐝-𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡 𝐭𝐨 𝐟𝐫𝐞𝐞 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 Use a more risk-based, tiered approach so the most exposed sectors receive the strongest protection. Temporary reduce auction share and reallocate part of the allowances freed up by CBAM to allow for more free allowances for vulnerable non-CBAM sectors. 🔶 𝐑𝐞𝐟𝐢𝐧𝐞 𝐂𝐁𝐀𝐌 Improve monitoring and anti-circumvention rules, address export exposure, and extend to downstream products only where there is a strong evidence base. 🔶 𝐏𝐫𝐞𝐩𝐚𝐫𝐞 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐩𝐡𝐚𝐬𝐞 𝐛𝐞𝐲𝐨𝐧𝐝 𝐧𝐞𝐰 𝐜𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐞𝐬 Introduce a complementary system of direct cost compensation that is ex-post, benchmark-based, and limited to residual hard-to-abate emissions. Many thanks to Dr. Bernd Weber, Dr. Kirsten Scholl and Joachim Schmitz-Brieber of EPICO KlimaInnovation for the excellent collaboration. Any questions please get in touch with Patrick Peichert, Lino Sonnen or me.

India's target of 500 GW of renewable energy by 2030 is ambitious, but achieving it requires decisive policy reforms. Stronger Renewable Portfolio Standards (RPS) are a must, mandating power companies to source more energy from renewables, with clear deadlines in place. ⚡ To accelerate adoption, India needs: • Financial incentives – Subsidies for rooftop solar, generation-based incentives (GBIs), and low-interest loans for projects. • A modernized power grid – #GreenEnergy Corridors for solar and wind integration, plus smart tech upgrades to handle fluctuating supply. • Expanded PLI schemes – Boosting domestic manufacturing of solar panels, wind turbines, batteries, and other key components. • Support for energy storage innovation – R&D funding and incentives for large-scale #batterysolutions. Simplifying approvals through single-window clearance systems and running public awareness campaigns can also help drive adoption. India is at a crucial juncture. With the right policies and swift action, we can lead the global renewable energy revolution and create a sustainable future for generations to come. #RenewableEnergy #SustainableIndia #EnergyPolicy

Every year, Olive Ridley turtles quietly return to Tamil Nadu’s beaches to lay eggs, but survival is tough. Globally, only 1 in 1,000 hatchlings makes it to adulthood, threatened by fishing nets, plastic, boats, lights, coastal construction, and climate change. Chennai’s beaches are critical nesting grounds. Until now, protection was seasonal, relying on forest staff, NGOs, and volunteers. But Tamil Nadu is changing the game. India’s first dedicated Sea Turtle Conservation Centre is being built in Guindy, Chennai. The centre will research turtles, rescue and rehabilitate the injured, monitor nests, guide policy, and educate communities, turning short-term efforts into year-round, science-driven conservation. Tamil Nadu is giving turtles a real chance. What is your state doing to protect its marine life? Advanced Institute for Wildlife Conservation (Tamil Nadu Forest Department) Supriya Sahu MK Stalin Government of Tamil Nadu Tamil Nadu Marine Resource Foundation (TN-MRF) Tamil Nadu Green Climate Company Sudha Ramen News With Navya explains.

This building in Germany is covered with over 30000 trees 🌎 By 2050, nearly 70% of the global population will reside in cities, amplifying urban challenges such as extreme heat, air pollution, and biodiversity loss. In response, Düsseldorf has transformed a longstanding urban obstacle into a pioneering solution for climate resilience and sustainable development. Kö-Bogen II, located in the heart of Düsseldorf, stands as Europe's largest green facade. Designed by Ingenhoven Architects and completed in 2020, the project integrates over 30,000 hornbeam hedges into the building’s structure. These plants, covering walls and roofs, contribute to reducing local temperatures, filtering air pollutants, and supporting urban biodiversity. The design incorporates specialized substrates for planting directly into the facade, combined with smart irrigation systems that deliver precise amounts of water and nutrients. This living infrastructure functions as a natural air conditioning system, releasing cooling water vapor and mitigating the urban heat island effect—an increasingly critical issue for densely populated environments. Environmental benefits extend beyond cooling. The greenery improves local air quality, absorbs carbon dioxide, and creates habitat corridors for urban wildlife. The ecological impact of Kö-Bogen II’s green coverage has been compared to that of approximately 80 mature trees, demonstrating how architecture can actively contribute to ecological restoration. Cities such as London and Singapore are already adopting similar concepts, recognizing the potential of integrating vegetation directly into urban development. Projects like Kö-Bogen II highlight the importance of designing urban environments that enhance resilience, restore ecological functions, and prioritize public health in an era of rapid urbanization. #sustainability #sustainable #business #esg #nature