Global leaders identify 6 key systems levers for climate and nature

The global fight against the climate crisis is no longer just an environmental issue but a defining economic challenge.

As the world races to achieve net-zero emissions and halt the alarming decline of biodiversity, leaders from across the private, public and philanthropic sectors are stepping up to tackle these challenges head-on.

Never has an impartial platform, such as the World Economic Forum, been more important for people to catalyse solutions.

Contrary to rising assumptions, these leaders have an unmistakable and urgent message: climate risk is inextricably tied to financial risk and pertinent to national security, economic resilience and global competitiveness.

When the balance of power is shifting, the stakes are higher than ever. Our strategic investments today in climate action will define tomorrow’s trade relationships, technological dominance and geopolitical alliances.

Climate change is a challenge of resource management and a race for technological innovation. Those who lead in clean energy, artificial intelligence (AI), and sustainable practices and access to critical materials and resources will secure their economic futures and global influence.

Recently, global leaders across the capital stack gathered at the Forum’s GAEA (Giving to Amplify Earth Action) session during the Sustainable Development Impact Meetings 2024 in New York, and the Forum’s August Leadership Meetings.

And they defined the six critical levers that will drive the transformation of climate and nature systems across geographies, value chains and economies. These six levers are not mere theoretical ambitions but urgent imperatives that demand swift, coordinated action.

Blended finance is a transformative tool in the global effort to tackle the climate crisis, aligning public, private and philanthropic capital to overcome traditional financing barriers and drive high-level investments.

By leveraging philanthropic catalytic capital and reducing risk, sometimes through junior equity, first loss or other forms of de-risking, it incentivizes private sector involvement and enables governments and corporations to unlock solutions at scale and pace.

When public debt levels are off the roof, the private sector needs to lead with upfront investment, as we’ve seen throughout history.

“Harnessing the power of philanthropic capital in blended finance structures is one of the most powerful approaches to support the transition towards an impact economy,” says Tom Hall, CEO of UBS Optimus Foundation Network.

“Blended finance is a strategic tool that reimagines the power of investing, facilitates innovation and pools the resources required to create a multiplier effect and maximize the impact of our efforts.”

If philanthropy wants to be truly consequential in climate change, it should step up to play a role in the early stages of climate action. Today, less than 2% of total global philanthropic capital (close to $1 trillion) is currently directed toward climate initiatives, creating a significant funding gap.

While philanthropy alone is a minimal asset in the global economy, its risk tolerance, agility, nimbleness and ability to crowd in other types of capital, allows it to convene other commercial and public capital. That’s because it takes on some of the risks from climate and nature interventions.

Philanthropy can be truly consequential when aligned with public and private funding, removing specific obstacles and market failures to pave the way for private investment. Bill Gates’ Breakthrough Energy or Three Cain Group’s Allied Climate Partners are examples of this.

Corporate philanthropy, in particular, is key to driving early-stage innovations, reducing market risks and accelerating systemic change.

This is outlined in the recent white paper, The Role of Corporate Philanthropy in Accelerating Climate and Nature Transitions, as we see trends in increasing corporate philanthropic dollars pivoting to climate and nature.

To implement climate and nature initiatives at the necessary scale and urgency, utilizing robust, data-driven metrics measuring performance and impact is essential to enhancing coordination, attracting investment and empowering informed decision-making.

“One of the big things I’m really excited about is finding excellent solutions for better data through innovation and technology,” says H.R.H. Princess Beatrice.

“This is what’s needed to attract increased capital and harness opportunities in climate and nature initiatives. Otherwise, the possibilities for financing and scale of impact are very restricted.

“We need to be able to make a solid, evidence-based case to bring in multi-sector partners and investors to this crucial area.”

The Global South, facing severe climate impacts, is critical to achieving a sustainable future and must be at the forefront of action. These regions, while vulnerable, have the potential to lead the green economy, for example, by leapfrogging with clean energy.

Investment in green energy solutions will reduce emissions, improve energy access and boost local economies, creating jobs and health benefits. Investing in the Global South is a moral obligation and a strategic necessity for a sustainable global energy future.

Asia is at the heart of the climate challenge and is home to over half the world’s population and responsible for more than half of global emissions.

At the Forum August Leadership Meetings, leaders came forward with proposals for clean energy finance, vehicle electrification and coal retirement, emphasizing that philanthropy must drive investment to scale these solutions.

“Coal plants in Asia will exhaust the remaining carbon budget if left to operate to the end of their economic lives,” says UN Special Envoy for Climate Action and Finance, Mark Carney. “Financing their early retirement will require blended finance and energy transition credits backed by high integrity voluntary carbon markets.

He adds: “Philanthropists can play a critical role with catalytic capital and support for workers and communities to ensure a just transition.”

The ocean economy is crucial to addressing climate and nature challenges, yet it has long been overlooked.

Oceans regulate climate, sustain life and provide food security while also offering immense economic opportunities through sustainable fisheries, marine tourism and renewable ocean energy.

“Recognizing the vital role oceans play, we launched the Blue Oceans Community this year to drive impactful action for the conservation and sustainable use of oceans, seas and marine resources in Asia,” says Lim Seok Hui, CEO of the Philanthropy Asia Alliance.

“Through initiatives like scaling marine protection alongside sustainable fisheries management, advancing blue carbon solutions and conducting vital marine biodiversity surveys, the community is fostering cross-sector collaboration to secure a sustainable blue economy.

“We invite more members and partners to join us in advancing this collective mission and amplifying impact for our oceans.”

At the August Leadership Meetings, an ocean venture investment fund was proposed to channel capital into the blue ecosystem, attracting more financing from institutional investors through philanthropic engagement.

“The World Economic Forum’s GAEA initiative is creating great partnerships between philanthropists, governments and businesses to have a lot of catalytic impact.

“I am experiencing it with my OceanX initiative working with others in support of ocean innovation and conservation and as a co-chair of the committee, I am seeing it happen in several other areas,” says Ray Dalio, founder of Dalio Family Office.

The next decade is going to be crucial to keep momentum towards a sustainable future and avoid the world losing hope. We will need coordinated, unified action to overcome political, economic and institutional barriers.

GAEA (Giving to Amplify Earth Action) is leading this charge. Initiatives such as the GAEA Awards this year at the World Economic Forum Annual Meeting 2025 in Davos, Switzerland, are spotlighting clear evidence that it is possible for systems change and collaboration across value chains to push systems forward in half the time.

With a clear roadmap and growing momentum, it’s time for bold, collective action to create lasting change. Those who lead in climate finance will shape the global economy, securing both the planet’s future and economic stability.

Join us in this conversation and journey.