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Daily Digest for

September 28, 2025

Climate resilience investing: $600B–$1T by 2030

McKinsey estimates an addressable market of $600 billion to $1 trillion by 2030 for 49 priority climate-resilience technologies and documents that less than $8 billion has been raised to date for resilience-dedicated funds. The article highlights recent actions such as California’s wildfire response (more than $50 billion in losses), a $170 million increase in forest-management funding to a $2.5 billion total, and Barbados’ $165 million debt-for-resilience swap, and recommends quantifying returns, creating structural incentives, and building specialized capital pools.

AI diffusion linked to higher local CO2 emissions

A CEPR discussion paper (Bonfiglioli et al., 2025) finds that higher AI penetration is associated with faster CO2 emissions growth across US commuting zones (2002–2022), driven primarily by scale effects and increased carbon intensity of electricity. The study links AI measures, data center and power plant locations, and uses a shift–share identification strategy to show proximity to data centers causes nearby power plants to use more fossil fuels.

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