3 Ways Your Money Can Fight Climate Change | Veronica Chau | TED

Summary

The speaker emphasizes the urgent need for four trillion dollars annually by 2030 to combat the climate crisis. Despite financial institutions committing to net-zero by 2050, challenges remain in deploying funds effectively. The speaker highlights the intertwined issues of housing affordability and climate change, suggesting that addressing one can benefit the other. Solutions include government policies, institutional investor mandates, and consumer demand for greener housing solutions to unlock trillions for climate action.

Takeaways

• 💰 **Urgent Financial Need**: At least four trillion dollars per year by 2030 is required to prevent a climate crisis.
• 🌱 **Green Economy Opportunities**: Banks and investors recognize the risks of climate change and are eager to finance the green economy.
• 🌐 **Global Commitment**: Over 450 financial institutions, managing over 130 trillion dollars, have pledged to align their financing with net-zero emissions by 2050.
• 🏠 **Housing and Climate Connection**: The challenges of housing affordability and climate change are linked, and solving one can help solve the other.
• 💔 **Affordability Crisis**: There's a significant scarcity of affordable homes, especially for those living below the poverty line.
• 🔥 **Energy Inefficiency**: Older, less energy-efficient homes are prevalent in marginalized communities, leading to higher utility costs.
• 🌿 **Sustainable Finance**: The speaker emphasizes the role of sustainable finance and investing in transforming challenges into financing opportunities.
• 💡 **Financing Opportunities**: Banks see potential in financing over a trillion dollars' worth of projects to reduce housing emissions.
• 🚧 **Risk Thresholds**: Banks require certain risk thresholds to be met, which early-stage green technology companies and affordable housing projects might not meet.
• 🌍 **Public Policies Needed**: The right public policies, programs, and permits are needed to mobilize the necessary capital for climate action.
• 🗳️ **Civic Engagement**: Voters and constituents can influence government actions by demanding policies that support climate finance.

Q & A

How much money is needed per year by 2030 to avert a climate crisis according to the speaker?

At least four trillion dollars per year is needed by 2030 to avert a climate crisis.

What is the current issue with the flow of money to combat climate change?

The money isn't flowing at the rate needed to keep the planet habitable.

How many financial institutions have committed to aligning their financing to net-zero by 2050?

Over 450 financial institutions have committed to aligning their financing to net-zero by 2050.

What is the collective amount of money managed by these financial institutions?

These financial institutions collectively manage over 130 trillion dollars.

What is the main challenge in deploying money into technologies that can decarbonize the world?

It's proving to be really hard to deploy real money into real technologies that will actually decarbonize the world.

What is the affordability challenge faced with housing in the United States?

There's a scarcity of over seven million homes that people living at or below the poverty line can afford to rent.

How does the energy-inefficient housing affect the affordability of living in homes?

Older, less energy-efficient homes are less affordable due to high utility bills, and they tend to be in Black and Brown neighborhoods.

What is the climate challenge associated with building more affordable housing?

Buildings are one of the leading contributors to greenhouse gasses, and a business-as-usual approach to building housing could exacerbate climate change.

What is the role of sustainable finance and investing in addressing the housing and climate challenges?

Sustainable finance and investing can transform these challenges into financing opportunities, such as deploying debt, equity, grants by governments, investors, and banks.

What is the catch when it comes to banks financing the most needed things like replacements for high-carbon cement?

Banks work within prescribed risk thresholds, and early-stage companies developing replacements for high-carbon cement might not fit within those risk thresholds.

What are the three Ps that the speaker suggests governments should provide to mobilize climate finance?

The three Ps are public policies, programs, and permits.

What is the role of institutional investors like pension plans and insurance companies in climate finance?

Institutional investors manage large balance sheets and are increasingly recognizing the long-term risks associated with climate change and social inequities, leading them to take action.

How can individuals create demand for greener solutions in housing?

Individuals can create demand by asking about energy efficiency and carbon footprints when buying or renting homes, similar to how they have shown demand for alternatives to meat or electric vehicles.