Why Climate Optimism Is Key to Solving the Climate Crisis

🌎 Let's talk about climate optimism, because the magnitude of the crisis does not afford the luxury of pessimism.

It's no secret that the biggest lever we can turn in mitigating climate change is investing in the decarbonization of the built world, which is responsible for 40% of CO2 emissions. And I have a lot of confidence that the real estate industry is ready to lead the way in decarbonization.

1. I'm optimistic because of climate tech entrepreneurs. There are incredible climate technologies coming out of the real estate industry, including many of the companies in Fifth Wall's portfolio.

2. I'm optimistic because of real estate owners and operators. Real estate owners and operators are the most critical part of this imperative to decarbonize the built environment: Fifth Wall's investors have done something that very few real estate firms ever have, which is actually investing into climate tech. With their support, we've raised the largest pool of capital ever to decarbonize the global real estate industry.

3. I'm optimistic because of regulators.States like Maryland, California, Virginia and Hawaii making ambitious carbon reduction pledges by 2040, 2045, or 2050.And to the federal government's credit, the Inflation Reduction Act and the Infrastructure and Jobs Act are some of the most ambitious climate regulation in history, investing billions of dollars into climate.

4. I'm optimistic because of investors.Private capital markets are focused on built world decarbonization for the first time ever, and I think investment is going to skyrocket: Our climate fund 5x'd the growth of capital put toward decarbonizing real estate, and I think we're going to see a tidal wave of parabolic growth flowing into the space going forward. The energy transition represents the largest mobilization of capital in human history—carbon emissions are a huge problem, and therein lies a huge opportunity.

_{Statements and opinions herein are not necessarily those of Fifth Wall and Fifth Wall makes no representation or assurance that forward looking statements, forecasts or projections will be achieved. Recipients of this information should not treat it as business, investment, tax, accounting, legal or any other advice, and it should not be relied on as such. Limited partners and/or portfolio companies featured herein have not been compensated for providing their statements.  Nothing herein constitutes an offer to sell or solicitation of an offer to buy investment interests in any Fifth Wall managed vehicle.}