The climate transition appears to be a sustainability issue, but it is primarily a financial issue.

The world emits too much carbon. Reducing emissions is the highest priority. At the same time, organizations such as the Science Based Targets initiative (SBTi) and the University of Oxford indicate that reduction alone is not enough to achieve climate goals. Carbon that is already in the atmosphere must also be removed.

And that is where the financial challenge lies. Trillions are needed annually to achieve the climate goals. Without significant private investment, these goals will remain ambitious but unachievable plans.

Total climate finance in 2023 amounted to $1.9 trillion. Although this is an increase compared to previous years, the climate finance gap remains significant. An average of at least $6.3 trillion per year is needed between 2024 and 2030 to prevent the most serious consequences of climate change.*

Bottom line: climate solutions require capital investment. Financing ensures that current climate projects can continue and, above all, that the number of climate projects will grow significantly.

Carbon credits enable companies to invest in sustainability while achieving their business objectives—climate action, CSRD compliance, profit generation, promotion of sustainability efforts, or a combination thereof. In other words, investments that benefit both the company and the climate.