The underlying thesis for investing in solutions that benefit the environment is increasingly compelling, given the macro trends of a rapidly growing population and increased urbanization, the social pressures to more effectively manage the environmental spillovers that come with growth, and the security imperatives of protecting against extreme weather. At the same time, capital flow into environmentally beneficial opportunities is often constrained by uncertainties around public policy, budgetary challenges, and the natural fits and starts of nascent technologies. In response to the opportunities and challenges, a number of innovative financing mechanisms and capital markets solutions are being deployed to scale-up investments in clean technology, energy efficiency, water and green infrastructure solutions.
To raise awareness about these developments and to facilitate dialogue, Goldman Sachs hosted the Environmental Finance Innovation Summit on February 13, 2014. The Summit coincided with the powerful nor’easter Pax, which underscored the importance of the topic at hand. With a group of nearly 200 participants, the Summit provided a forum to discuss emerging innovative financing vehicles, identify obstacles and solutions to scaling up these financing mechanisms, offer policy input, and foster partnerships to drive further progress. The following paper summarizes key takeaways from the summit.