According to Yahoo News, billionaire investor Ray Dalio expressed concerns about the impact of rising interest rates on climate project financing. Speaking at the Bloomberg Green summit at COP28 in Dubai, Dalio stated that the increased cost of funds makes it more difficult to finance climate projects. He emphasized the need for lenders to receive a real return to avoid creating a bubble.
Dalio, the founder of Bridgewater Associates, believes that making green solutions profitable is the key to unlocking the up to $10 trillion a year required for climate investments. He acknowledged that climate change is an expensive issue and that investors have limitations, given that the global GDP is only around $100 trillion. Dalio said, 'We are living in a world that doesn’t have enough money.'
The investor highlighted some innovative methods being developed to direct funds towards the climate crisis. He praised the United Arab Emirates' recently announced Alterra climate fund, which aims to mobilize $250 billion by the end of the decade, calling it a 'wonderful template.' BlackRock Inc., Brookfield, and TPG are among the inaugural launch partners.
However, Dalio expressed doubts about the planet's ability to meet its 1.5C warming target, suggesting that there should be a greater emphasis on adaptation. He believes that adaptation will be an area for significant investment and productivity.
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