WEBVTT 00:00:00.083 --> 00:00:04.587 The IPCC has now concluded that some amount of climate change, unfortunately, 00:00:04.587 --> 00:00:08.299 is now basically inevitable for at least the next 5 to 15 years, 00:00:08.299 --> 00:00:10.719 well within the time frame of an investor. 00:00:11.261 --> 00:00:14.347 Jay, Dave, thank you so much for being here with us today. 00:00:14.389 --> 00:00:15.849 This first question is for you, Jay. 00:00:15.849 --> 00:00:18.226 Talk about how you've brought private, public, 00:00:18.226 --> 00:00:21.604 and other forms of capital together for adaptation and resilience. 00:00:21.771 --> 00:00:25.275 Lightsmith runs the first private investment fund for adaptation and 00:00:25.275 --> 00:00:27.652 climate resilience technologies and solutions. 00:00:27.986 --> 00:00:32.699 It's a blended finance strategy, so it includes a whole range of private, public, 00:00:32.699 --> 00:00:34.325 and philanthropic investors that include 00:00:34.325 --> 00:00:36.745 the Green Climate Fund, the European Investment Bank, 00:00:36.745 --> 00:00:39.748 the Asian Infrastructure Investment Bank, the Newark Development Fund, 00:00:39.748 --> 00:00:43.251 the German and Luxembourg governments, as well as the Rockefeller Foundation, 00:00:43.251 --> 00:00:44.919 and a number of private investors as well. 00:00:45.253 --> 00:00:49.507 And so that combination of investors in a structure that enables you to actually 00:00:49.507 --> 00:00:53.219 share risk in a different way has enabled us to mobilize capital to invest in 00:00:53.219 --> 00:00:55.430 solutions for adaptation and climate resilience. 00:00:56.389 --> 00:01:00.435 And Dave, what's needed to turn adaptation investments into bankable projects? 00:01:00.560 --> 00:01:01.102 Thanks, Lisa. 00:01:01.102 --> 00:01:02.562 I'll pick up from from Jay. 00:01:03.104 --> 00:01:04.773 You know, these projects tend to be very complex. 00:01:04.773 --> 00:01:11.279 So you need to have different sorts of capital matched to the risk returns of these projects. 00:01:11.571 --> 00:01:14.657 And I'm just going to dwell a bit on the private sector part of it, 00:01:14.657 --> 00:01:18.495 because you know, you have philanthropic, you have public sector capital, and so on. 00:01:18.495 --> 00:01:19.746 They can take a lot of risk. 00:01:20.205 --> 00:01:24.501 The private sector needs to see what is the pathway for monetization. 00:01:24.626 --> 00:01:28.296 So whether that's on revenue protection, whether that's a new revenue stream, 00:01:28.296 --> 00:01:31.925 or some value to its balance sheet and asset, 00:01:31.925 --> 00:01:34.219 that's what will enable a project to get across the line. 00:01:34.677 --> 00:01:37.514 And this question is for both of you. Where do you see the clearest 00:01:37.514 --> 00:01:41.101 opportunities to realize fair returns and societal benefits? 00:01:41.476 --> 00:01:45.563 So what we're seeing now is investors have come to this conclusion that 00:01:45.563 --> 00:01:49.818 investments in adaptation and resilience solutions and technologies are an 00:01:49.818 --> 00:01:51.152 unavoidable opportunity. 00:01:51.194 --> 00:01:56.241 And I say that because the IPCC has now concluded that some amount of climate change, 00:01:56.241 --> 00:01:59.160 unfortunately, is now basically inevitable for at least 00:01:59.160 --> 00:02:02.872 the next 5 to 15 years, well within the time frame of an investor. 00:02:02.872 --> 00:02:07.127 So technologies and solutions that can help us manage fire risk, flood risk, 00:02:07.127 --> 00:02:09.337 storm risk, disruptions to the supply chain, 00:02:09.337 --> 00:02:12.715 disruptions to infrastructure, changes to human health, 00:02:12.715 --> 00:02:17.345 all will have increased demand and increased investment returns as a result of that. 00:02:17.345 --> 00:02:18.388 And we need that to happen. 00:02:18.388 --> 00:02:21.474 We want these solutions to be highly scalable so that we can bring them as 00:02:21.474 --> 00:02:24.936 quickly as possible to everyone who needs them, especially in developing countries, 00:02:24.936 --> 00:02:27.480 in vulnerable populations, and then to the rest of the world. 00:02:27.647 --> 00:02:30.608 Those solutions, I think, represent that kind of unavoidable 00:02:30.608 --> 00:02:33.945 opportunity for investors to actually make great growth investments. 00:02:34.487 --> 00:02:36.406 You know, if I think about, the ultimate projects, 00:02:36.406 --> 00:02:41.161 that need to be on the ground, where you get the 1 + 1 = 3, right? 00:02:41.161 --> 00:02:45.165 Where public and private sector interest intersect and where you can find 00:02:45.165 --> 00:02:48.001 opportunities, where, you know, a company invests, 00:02:48.001 --> 00:02:50.044 for flood protection for its own assets. 00:02:50.336 --> 00:02:55.175 But it makes sense to put some public capital in and have those benefits beyond 00:02:55.175 --> 00:02:56.467 the fence line, right? 00:02:57.010 --> 00:03:02.515 Or where there are multifunctional solutions that serve public and private interests. 00:03:02.515 --> 00:03:06.060 So for example, flood protection in the coast, 00:03:06.060 --> 00:03:08.771 with dual use infrastructure. You could have a toll road on it. 00:03:08.771 --> 00:03:11.608 You know, there's a revenue stream, the private sector participates, 00:03:11.608 --> 00:03:14.319 the public sector and the broad economy gets benefits out of it. 00:03:14.485 --> 00:03:18.489 So we've got to find these spaces where they intersect and bringing in both 00:03:18.489 --> 00:03:22.452 resources and capital from public and private sources end up giving us the 00:03:22.452 --> 00:03:23.620 benefits that we need. 00:03:24.370 --> 00:03:25.330 Thank you both so much. 00:03:25.705 --> 00:03:26.080 Thank you. 00:03:26.748 --> 00:03:27.040 Thank you.