Two reasons for post-COP26 optimism

With an agreement in Glasgow signed – and facing a mixed reaction – it is worth pausing to consider some the detail of the common ground found during the two weeks of COP26.

The primary focus is rightly on simple carbon emissions reduction. But there were two other developments which give particular cause for hope: on natural capital and carbon markets. Natural capital as a tool in the battle against climate change The emergence of natural capital as an investible asset is a powerful new tool in the climate battle. The concept dates back decades. Amid the energy crisis of 1973, economist Ernest Friedrich Schumacher made first mention of “natural capital”, expressing the need to treat resources as non-renewable capital rather than expendable income.  But it is only today, amid a fresh energy