September 14, 2022Resources
Climate investment is a term that refers to the funding of projects or initiatives that aim to mitigate or adapt to the impacts of climate change. This can include a wide range of activities, such as investing in renewable energy, nature-based solutions, supporting initiatives that help communities adapt to the impacts of climate change, and even investing in sustainable aviation fuel (SAF).
Is climate investment the same as offsetting?
Climate investment is often distinguished from climate offsetting by the scale of funding and potential impact on the climate. Carbon offsetting refers to the practice of funding projects that remove or reduce greenhouse gases from the atmosphere in order to offset an individual or company's own carbon emissions. Climate investing can also be undertaken by individuals or companies, but the amount invested is more considerable and the impact goes beyond a personal or business company footprint.
While both climate investment and offsetting can be useful tools in addressing climate change, they serve different purposes and have different implications. Climate investment can focus on reducing emissions over the long term, while offsetting allows individuals and organizations to compensate for their own emissions in the short term. Both approaches can and should be part of a comprehensive strategy to address climate change.
Learn more about how CHOOOSE can help your business fulfil its sustainability goals.
How does climate investing help the planet?
There are a number of ways that climate investment can help address climate change, depending on the type of project or climate solution that is being invested in.
Companies can engage in climate investment by facilitating the development and deployment of low-carbon technologies, implementing energy-efficient practices in their operations, or financing projects that aim to reduce greenhouse gas emissions beyond compensating for their own footprint.
Individuals can invest in companies or funds that focus on climate-friendly technologies or practices. Even governments and financial institutions can participate in climate investment through the creation of policies and incentives that encourage climate action or investing in low-carbon projects or products.
Overall, climate investment is a critical tool for addressing climate change and building a more sustainable future. By investing in efforts to mitigate and adapt to the impacts of climate change, we can reduce our carbon footprint and create a more sustainable and resilient world for us and for future generations.
CHOOOSE works with global businesses of all sizes to take climate action. Contact us today to learn how we can help measure and manage your carbon emissions.
About us: CHOOOSE™ is a venture-backed leader in technology-based climate action, building digital tools so that everyone, anywhere, can easily integrate climate action into everyday life and business. Through flexible integrations, customer-friendly interfaces, automated carbon measurement, and a connected marketplace of climate solutions, CHOOOSE delivers a complete platform that enables its partners to build and manage high-impact climate programs. Learn more at www.chooose.today.