First published by CGTN, 22 June 2025
An unfavourable geopolitical context is putting climate technology investment at risk at exactly the moment when earlier investments are reaping dividends. This makes it a critical point at which to ignore political headwinds and public resistance towards ambitious climate action and increase – not reduce – these types of investment.
Investment into climate technology broadly supports a number of key areas. These investments are creating new economic opportunities, including markets and jobs, while also protecting and restoring the climate and ecosystems.
They are boosting efficiencies, saving costs and helping businesses, economies, sectors and communities adapt and become more resilient.
Cutting back on climate technology investment now would not only scuttle the progress made and the vital innovation that is rapidly developing, but also risk undermining these burgeoning benefits.
Examples of sustainability tech creating both economic opportunities while also protecting and restoring our climate and natural ecosystems have been growing exponentially. One such company leading this charge is ARC Marine, a UK-based scale-up that makes artificial reefs out of recycled materials.
These support marine biodiversity near infrastructure such as cables, jetties and offshore turbines. To date, the company has installed more than 1,300 of its reef cubes, creating 3,400 square metres of marine habitats and repurposing more than 620 tonnes of by-product materials.
On the other side of the world, Kweichou Moutai, a leading Chinese liquor producer, has implemented a soil-to-soil circularity model.
This model transforms distillery by-products into organic fertilizer, animal feed, biogas and high-value biomaterials such as collagen and biodegradable polyhydroxyalkanoates, creating new market opportunities for biotechnology.
Climate technology is also proving its value in boosting efficiencies and reducing costs. Operating in Africa and Brazil, Moroccan manufacturer OCP has created the Tourba platform.
The platform uses satellite imagery, weather data and soil analysis to provide tailored recommendations on fertilizers and irrigation to smallholder farmers.
Today, 2.5 million farmers use OCP’s AI-powered Pocket Agronomist and Agribooster programmes, which offer customized advice and access to markets.
As a result, yields have increased by up to 20% and revenues by up to 34%, supporting shared prosperity.
Another critical area where clean technology investment is delivering results is resilience. One striking example is wildfire prevention. French insurance group AXA’s wildfire risk prevention tool integrates satellite imagery with data on topography and vegetation.
Combined with predictive analytics, it provides continuously updated risk maps and insights. In China, RoboticsCats has developed an AI-based service that supports wildlife monitoring and early wildfire detection to strengthen nature-based solutions and ecosystem protection.
Some of the most significant transformations are still emerging. Start-ups such as AstroForge are exploring ways to reduce reliance on terrestrial mining by developing spacecraft capable of extracting and processing metals in space.
Others are developing new forms of clean energy, including osmotic power, which could reshape how water is valued as a strategic resource.
Osmotic power generates steady renewable energy from differences in salinity, and its widespread use could reposition water from a waste stream to the core of an integrated energy and resource system.
While many of these innovations are still years away from commercialization, they underline why now is precisely the time to invest heavily in clean technologies that will help address mounting climate challenges.
A decline in investment would not only slow innovation but weaken adaptation and mitigation efforts, increasing the costs of climate impacts. Since 2000, climate-related disasters have caused more than $3.6 trillion in losses.
Hazards threatening corporate fixed assets mean that by 2035, businesses could face annual profit losses of 6.6% to 7.3%.
As highlighted in the World Economic Forum’s CEO Guide to Navigating Climate Risk, understanding climate risk is essential to resilience, competitiveness and unlocking opportunity, including up to $10.1 trillion in additional business value by 2030.
Climate risks and opportunities should therefore be embedded in corporate strategy, informing risk management as well as financial, operational and strategic decisions.
Balancing short-term profitability with long-term sustainability requires businesses to repurpose assets, manage the risk and reward profiles of climate technology investment and ensure competitiveness in green sectors. Capital allocation must align with climate risk strategy.
The Alliance of CEO Climate Leaders has demonstrated this in practice, having reduced emissions by 10% over three years while increasing aggregate revenues by 18%.
Research also shows that businesses tend to overestimate the cost of action and underestimate the financial losses of climate change. Evidence suggests that for every dollar invested in adaptation and resilience, returns of $2 to $19 can be achieved.
The path forward is clear: invest boldly in climate technology today or pay a far higher price tomorrow in lost opportunity, weakened resilience and escalating costs. Prioritizing innovation now safeguards economies and ecosystems while opening new avenues for growth.
Image: DALL·E 3
