Climate change money will flow generously into plan B

Climate change money will flow generously into plan B
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Companies that are committed to adaptation, such as Syngenta chemistry, may be the favorites for sustainable investment

Sustainable investing is moving to plan B. This year, money minds will focus on what happens when the temperatures rise. Until now, the stereotypical green investment has been in renewables companies like Orsted. COP26 again focused on adaptation, covering what to do when temperature rises materialize. Bank of America estimates that the global climate adaptation market will double to $ 2 trillion annually in the next five years. The UN claims that a 1.8 trillion investment by 2030 in early warning systems, resilient infrastructure, rainfed crop production, mangroves and water resources management would yield more than 7 trillion cost benefits avoided from the effects of climate change. .

Let’s look at the chemical sector. Switzerland’s Syngenta, whose Chinese owner is studying the possibility of listing it for $ 60 billion, spends $ 2 billion a year on R&D to help farmers maintain their warming-affected crops. That includes drought-resistant cabbages and corn with deeper roots, fungicides to prevent flood-ravaged crops from becoming moldy, and cereal variants that shorten the fattening time of beef. Bayer is also a potential winner.

Who else? Large engineering companies, such as the Canadian WSP Global, which is worth 15,000 million euros, will dedicate themselves to helping municipalities redesign their infrastructures to protect them from floods. Veolia is well placed to win desalination contracts in drought-stricken areas. Microsoft and Swiss Re have invested in so-called direct air capture, to suck carbon out of the air. Even wild ideas like solar geoengineering to dim the sun will gain traction.

The miserabilists, For their part, they can always try the Smith & Wesson gunsmith, or a canned food company. But they can achieve the same result by betting more soberly on adaptation.