Fundamental shifts in empowerment, investment, and cross-sector partnerships are needed if we are to fully address the scale and urgency of the climate crisis, says Mariah Levin, Executive Director of beVisioneers: The Mercedes-Benz Fellowship
Floods, droughts, wildfires and other natural disasters cost the global economy US$320bn in 2024 – an approximate US$50bn or 15% increase in just one year, from 2023.
Over the next decade, according to the World Economic Forum 2025 Risk Report, extreme weather events, biodiversity loss and ecosystem collapse, critical change to Earth systems and natural resources shortages are likely to reach even costlier heights. Lower income communities and countries will certainly bear the brunt of these projected costs, but quality of life will deteriorate indiscriminately if we do not collectively prioritise innovation that protects air, water, and soil quality.
While the link between human activity and extreme weather has been scientifically proven, education and economic systems have not adequately responded to advance more sustainable and future-proof societies. To accelerate the pace of change, we must build and invest in effective, community-based environmental solutions.
But how do we overcome financial barriers and traditionalist approaches to fast track needed change? Based on our work with thousands of social and environmental innovators at The DO School Fellowships, we see three imperatives for climate investors and philanthropists to consider:
Imperative 1: Equip those who bear the brunt of climate change
Too often, those with the greatest power and influence do not have first-hand experience with the issues they shape. For example, in 2023, less than 3% of annual climate finance flows went to or within least developed countries (LDCs), despite the fact that these countries’ populations are at greatest risk of climate change’s impacts. Funds remain concentrated largely in higher income countries, and decision-makers overseeing their deployment may not appreciate the reality faced by communities. Meanwhile talent that is ready and motivated to act is not cultivated and equipped to do so.
For example, nearly one in five households in South Africa face food insecurity, and this issue remains especially difficult to tackle in a context of high unemployment and water shortages. But a rising generation of South African innovators is leveraging training and connections through beVisioneers: The Mercedes-Benz Fellowship to address root causes. From businesses correcting the poverty tax on food, poor nutrition through organic farming, and affordable alternative protein sources, certain entrepreneurs are learning by drawing from their own contextual understanding of what communities need – and producing results. Because they have witnessed the challenges their customers face, they are primely positioned to devise effective solutions. As rich countries cut their development aid budgets due to mixed results, locally grown initiatives like these are the greatest hope to the continued advancement of a green jobs agenda.
In order to come up with meaningful climate adaptation and mitigation solutions, those experiencing the issues must be more effectively engaged.
Imperative 2: Uplevel investors to shake up investment strategies
Traditional investment models have consistently failed to identify and support diverse talent in climate innovation. The current venture capital ecosystem predominantly favours founders who fit certain demographic profiles and educational backgrounds, resulting in missed opportunities to fund potentially transformative solutions. Despite lots of talk around the benefit of diversifying teams and talent, investments into companies led by under-represented founders has stagnated for the past three decades.
Investors need new frameworks for evaluating resilient and winning entrepreneurs, particularly those from underrepresented communities or regions. This requires moving beyond conventional expectations and exit strategies, many of which are not realised in any case. As a new generation of investors emerges from the upcoming generational wealth transfer, the opportunity to invest in valuable innovation from unexpected places is on the horizon for those who truly care about impact. Investment firms could develop specialised expertise in identifying climate solutions from diverse founders in low capital markets, and create dedicated funding streams with appropriate risk profiles and timelines for climate-focused ventures.
Furthermore, educational programmes and mentorship initiatives that connect investors with communities on the frontlines of climate change can help bridge understanding gaps and foster more informed investment decisions. By expanding networks and perspectives, investors can better recognise and support the next generation of climate innovators – and build their own savviness around global and emerging trends.
Imperative 3: Build new, and unusual, coalitions
The challenge of funding environmental innovation around the world won’t be solved through traditional approaches. Across all industries, only 7% of venture capital goes to developing markets, and the “valley of death” around innovation sectors is even harder to bridge. For this reason, lots of emerging innovation will struggle to become commercially viable.
To address the most pressing environmental innovation needs, companies have an opportunity to engage innovators differently in their research and development processes and pipelines. Through corporate incubator and accelerator programmes, some companies test new partnerships, pilot innovations, or develop venture studios, where they lend their expertise and resources to generating new solutions to existing challenges.
This approach could be broadened further, to nurture talent and innovation from seed to flower. Breakthrough Energy, for example, offers a comprehensive approach to cultivating innovation from lab to market, and actively works with diverse stakeholders from private industry, civil society, and local communities to extend innovation beyond traditional barriers. A more holistic approach leverages complementary strengths and resources, enabling good ideas to scale more effectively than they could through traditional funding channels alone.
Moving forward
As climate-related disasters continue to intensify, the imperative for effective action grows stronger. By empowering those with direct experience of climate impacts, evolving investment approaches to leverage diverse talent, and forming innovative cross-sector partnerships along the innovation value chain, we can accelerate the development and deployment of much-needed solutions. Only through such fundamental shifts can we address the scale and urgency of the climate crisis before us.
About beVisioneers: The Mercedes-Benz Fellowship
beVisioneers is a global fellowship that equips innovators aged 16 to 28 with the training, expert support and resources to bring their planet-positive ideas to life Click here to find out more.
Images sources
https://reports.weforum.org/docsWEF_GRR25_Shareable_Risks_by_severity_10_Years.jpg
https://www.dw.com/en/is-climate-finance-reaching-the-most-vulnerable/a-70773548