Half the world is now facing droughts, floods and filthy water – and the problem urgently requires huge amounts of private finance, warns the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The warning from deVere Group’s Nigel Green comes as Italy declares a state of emergency amid the worst drought in 70 years.
Elsewhere, Lake Mead, the largest reservoir in the United States, which provides water for tens of millions of people and countless acres of farmland in the southwest, is now just one-quarter full.
Meanwhile, once again Sydney is flooded as the impact of the climate crisis becomes the new normal for Australia’s most populous state.
Nigel Green says: “There’s no doubt that all around the world the fallout of the growing climate crisis is accelerating.
“The UN's Intergovernmental Panel on Climate Change has warned in a report that more than half the world’s population faces water scarcity for at least one month every year, others will be hit by regular severe floods, previously only seen once-in-a-generation, while others have access to only dirty water.
“This is now being played out in real-time every time you look at the news.”
He continues: “A failure to get a grip on this emergency is going to produce catastrophic, irreversible consequences later.
“The response will require political and social determination on a global scale.
“But, critically, it will also require tens of trillions of dollars. As governments alone cannot afford this now, especially with slowing economic growth amongst other headwinds, the solutions demand private financing.”
As such, notes the deVere Group CEO, the financial sector needs now needs to become more proactive to “unleash and mobilise” the funds required.
He is calling for never-before-seen levels of cooperation between financial advisories, insurance firms, banks, wealth and asset managers, investment companies, fintech groups, banks, and auditors in the fight against climate change.
“Governments around the world have proven themselves to be slow – at best – at responding to the urgent ‘code red’ situation’ we’re facing.
“Therefore, the financial industry must step-up. If we don’t, the level of funding will not be available, nor at the pace necessary, to mitigate human-created global warming.”
Nigel Green concludes: “Climate change is the greatest risk multiplier to our planet, to our communities, and to our way of life.
“It will take huge amounts of private financing to halt its impact.
“The onus now falls on the financial sector to help mobilise and unlock the necessary funds through education and robust, impactful investment solutions.