Listen: Who pays for the tech to survive climate change?
"This. Marketplace podcast is brought to you by ultimate software dedicated to putting people first with innovative solutions for HR payroll and talent management. Learn more at ultimate software dot com. Ultimate software people first and by click share with click share, and you're meeting, you can share your screen instantly from any device, click share instantly projects any speakers laptop, tablet or phone onto a presentation screen. So everyone can work together. Share their ideas and create something great. That's the click share effect. Visit click share free trial dot com and learn more and sign up for your free trial. We're going to survive Lima change private money and entrepreneurs have to get game from American public media. This is marketplace tech demystifying the digital economy. I'm Molly would. We're continuing our new series on marketplace tech called how we survive about. How technology can help us adapt to climate change. And here's the thing about that. It's expensive the UN puts the total cost to society at fifty four trillion dollars at a minimum by the end of the century. So arguably what we need now is money to create innovative technologies to help survive. The worst effects of warming Jayco is managing director of the private equity firm light Smith group, a firm that's hoping to find an invest in some of those technologies, and he says there aren't many others like it. I think it's one of the earliest attempts to try to look at of teaching resilience as an investable opportunity. Most money so far has gone toward mitigation trying to reduce emissions and improve energy efficiency or toward recovering from disaster. And the bulk of that spending is driven by governments or nonprofits if you look at the global tracking of climate finance lists and five. Two six percent of all finance in the climate universe can be tributed what's called agitation or climate resilience. And so far the private sector has almost no skin in the game. But co says the need for funding is staggering three hundred billion dollars a year by twenty thirty in developing countries, alone and only growing so on the one hand private money is going to have to step in without being able to harness the flow of private capital from the private sector. We're going to face a much much more challenging experience with the effects of climate change flowing through over the next several decades and potentially the next several generations. And on the other hand, there is money to be made from companies that can come up with great solutions and scale them. Our rule is to find companies like that with great management teams already growing that can then be excel rated in their growth that will generate better returns for investors and also a better outcome for society. Okay. So but next question, what do you find co says he's looking at two possible catego-? Oris for investments, which he calls. Macgyver. Maclay? Macgyver used what he had to get out of jams. Looks like it might be Thurmond, Bob. So that's climate intelligence. Like, we talked about earlier this week or things like artificial intelligence for modeling risk to buildings and real estate. Then there's taking technology. We already have transferring it to different parts of the world, and scaling it. Up like, drip, irrigation or drought resistant seeds or cheap. Internet connected sensors for water metering but more available and cheaper. Now. Marnie MC fly from back to the future. Could use tools from you know, the future to change things. And so that means investing in entrepreneurs with crazy, moonshot ideas or materials, we haven't invented yet or just innovative ideas. I say distilling clean water from the air at any house or school or building anywhere on tomorrow show will look at a little macgyver and a little MC fly. And now for some related links. If you are not already you should totally subscribe to make me smart. The other marketplace podcast that I'm on with KAI Ryssdal. We did a crossover episode this week about climate adaptation with Solomon Hsiang, a professor of public policy at firstly who studies the economics of climate change adaptation, and in my opinion. It is a great episode. Jane brought up this really interesting idea of opportunity cost related to add up tation and resilience. He said that basically because of climate change the cost of just survival is getting higher, whether that's hardening infrastructure or disaster recovery or building new seawalls or AI sewer systems, and that leaves less money for other things in our society, like schools or firetrucks or the tech innovations that will need to make life easier or even possible over time other interesting reading on money and climate change last month to central. Bankers wrote an open letter about climate related financial risks. And how in fact climate change is a severe threat to the global economy. And I just learned there's a Sirius XM radio show called knowledge at Wharton, which probably also makes you pretty smart and on the most recent episode two professors from the university of economics and business talked about that letter and the potential economic impacts long term, and I really want this series to be focused on solutions in kind of a hopeful way. But in slightly bummer news earlier this week. It was confirmed that global carbon dioxide levels have hit their highest number in human history at four hundred fifteen parts per million. Scientists say that was probably last the case around three million years ago when sea levels were at least fifty or sixty feet higher and the Greenland and west Antarctic ice sheets. Probably did not exist so solutions, then I'm Ali would. And that's marketplace tech. This is APN Patrick in Santa Cruz. California wrote to us to say marketplace is an essential element in his life. And that we're helping make him smarter through high quality thought provoking and informative journalism to join Patrick and supporting what we do. Please donate online today at marketplace dot org. Thanks to Patrick and all the marketplace. Investors who make our work possible. This marketplace podcast is brought to you by click share, an award-winning wireless presentation system with click share and your meeting, you can share your screen instantly from any device. No more awkward small talk or wasted time as you wait. For tech problems to be fixed. Click share instantly projects any speakers laptop, tablet or phone onto a presentation screen. So everyone can work together. Share their ideas and create something great. That's the click share effect. Visit click share free trial dot com to learn more and sign up for your free trial."