Capital is flocking to alternative asset classes as a hedge against market volatility. Infrastructure and natural assets, for instance, have emerged as stable investment opportunities with reliable appreciation over time. Efforts to combat rapid warming of the planet and manage an efficient global transition will require investment in areas beyond wind and solar. And as the AI data boom ushers in a new era of computational power and connectivity, concerns about its growing environmental footprint have arisen. Cutting-edge climate-smart technologies, resilience projects, and nature-based solutions can accelerate progress towards decarbonization and adaptation goals as well as deliver long-term value to investors. To build these asset classes truly to scale, however, industry needs public sector funding and policy incentives to realign the economy after a century of oil and gas subsidies. Capital markets have a significant role in future-proofing their portfolios and, in turn, the planet. Can targeted private investment and advocacy within portfolio companies scale up promising climate solutions in alternative asset classes and sectors? Because public capital is limited, what policies or paradigm shifts could enable essential climate adaptation technologies? How can companies continue toward a sustainable transition amid the growing importance of resilience and adaptation?
