Climate change is making the recurrence and intensity of extreme weather events or natural catastrophes greater. The insurance industry’s losses over the last 50 years show an exponential increase for weather-related events versus other non-climate perils. Global insurance losses from wildfires rose 500% during 2010-2019. The humanitarian funding gap has grown from less than $1 billion 20 years ago, to $4 billion ten years ago, to over $20 billion today. As much as $1.5 trillion of total pension fund capital could be deployed in the (re)insurance space to help close the protection gap.

Installation of solar power capacity could reach 2.2 terawatts by 2050 with the right policies to support the technology. This would translate to 167 million households and 23 million businesses installing the technology. The greatest potential is seen in Australia, where up to 80% of rooftops could host solar panels. To achieve this, lawmakers need to focus on incentives, solar panels mandates on new builds, support for energy storage development and reducing other barriers including a lack of capital.

Federal investment into climate mitigation measures in rural areas of the United States could provide significant returns. The World Resources Institute found every $1 million invested would generate 17.5 jobs and $1.5 million in returns. Nearly 45% of all rural jobs created by these federal investments would be created in economically disadvantaged counties. Investment in measures to advance renewable energy projects, build infrastructure, make homes more energy-efficient, clean up fossil fuel production sites and to suppress wildfires would make these communities more resilient to climate change and improve the economies.