Investing after COP28: Five take aways for Nordic transitioners

COP28 sets a global direction, but private capital, sustainable investments and co-operations will bring home net zero once and for all. Here is how.

“We united. We acted. We delivered”. With the words from COP28 Presidency, investors and industry actors are ready to do their part. 2023 is the hottest year on record, temperatures reaching 1.4 degrees Celsius above pre-industrial levels, there was a clear call for action to policy makers present in Dubai. Even if world leaders continue the struggle to find common ground, the private sector’s commitment to reaching net zero is unanimous.

”We as investors, currently immersed in the transition journey, are not interested in doing the bare minimum. During COP28, Infranode, like many of our peers, saw the need for transition, and we won’t wait for perfect political solutions. We are responding to the call made to the global investor community” says Julia Kosulko, Operations and Sustainability Manager at Infranode.

Going beyond the COP28 summit, Julia shares her five take aways for Nordic investors:

1. A clearer statement, but is it enough? Fossil fuels are, for the first time ever, mentioned in the final agreement. Although not as strong as we were hoping for, the phrasing of transitioning away from fossil fuels is a leap forward in keeping the 1.5 C goal as the agreement also highlights the need to act during this decade.

2. Time to speed up. With weak formulations on the responsibility to act and an agreement filled with loopholes, it is now time for the global community of private capital and companies to do our part. We have the visions, the funding to back them up, and a strong belief that this will be equally beneficial for the world and our investors. And we must do it faster than ever.

3. CCS is part of the solution, but not the only one. In the pursuit of achieving net-zero goals, strategic investments in Carbon Capture and Storage (CCS) remain imperative for investors. By actively supporting CCS technologies, investors position themselves at the forefront of sustainable and responsible business practices.Investors must recognize that while CCS mitigates carbon emissions, it is not a standalone solution; a holistic commitment to renewable energy, and infrastructure, is essential. Essentially, we must invest in both.

4. The direction is set, at least for us. Infrastructure used to be a source of emissions, now it is a key enabler for decarbonization. The agreement to triple renewable energy until 2030 sends a clear signal to all global infrastructure investors. At Infranode, we recognize that transferring investments to more sustainable infrastructure is a driving force in the transition, and we are keen to take part in this.

5. Here is what we can do for you. The Nordic infrastructure need is estimated to be at least EUR 630 billion over the next six years. Our business model addresses the gap between allocated pension capital and infrastructure investments required to close the existing needs for renovation, transition to net zero, and new essential infrastructure. This is where we make a big difference and build long term value

”The green transition is the way forward, and sustainable infrastructure is an enabler to make it happen. I am proud to say that we, as investors, have the tools to meet the goals approved in Dubai, and we are taking action” concludes Julia Kosulko.