According to the OECD, meeting the 2°C scenario will require $6.9 trillion annual investments in infrastructure until 2030, versus $6.3 trillion annual investments in a business-as-usual scenario. These investments require precise alignment among governments, corporates, and investors.
However, several important factors hinder efforts to channel investments towards low carbon pathways. For instance, governments frequently lack the referential frameworks and tools to develop national climate strategies (national determined contributions, or NDCs) that are consistent with the 2°C scenario. Likewise, corporates often lack visibility on public climate strategy at national sectoral level, which weighs on their conﬁdence in investing in low carbon technologies.
To address this market gap, the 2° Investing Initiative and Beyond Ratings, a provider of data and analytics services for the investment industry, have joined forces to develop an innovative methodology and suite of services known as the Climate Tech Compass.
The compass’ goal is to help governments, corporates, and investors access critical information to manage the alignment of their policies and investments with the Paris Agreement goals. Operationally, it will provide technological pathways, divided by sector, as well as explicit investment options. It will thus allow key stakeholders to roadmap the investments that are needed by sector and technology in order to reach the 2°C target.
Combining 2°ii’s asset-level approach with Beyond Ratings’ climate alignment methodology based on a 2°C carbon budget.
This project has received funding from EIT Climate-KIC