The UN's Usher emphasizes the financing difficulties faced by companies in the green transition.

• The head of the United Nations Environment Programme Finance Initiative stated at a panel in Davos that while money is shifting away from non-green activities, the true challenge lies in the transition between the two extremes - the so-called "50 shades of green."
• The UNEP FI, established in 1992, claims to be the first organization to involve the finance sector in sustainability efforts.
• During the emergence of the Covid-19 pandemic, sustainability and investment became the main focus as investors invested in new funds.

The challenge of increasing investment to green companies remains significant, according to the head of the United Nations Environment Programme Finance Initiative.

Eric Usher, head of the UN partnership with banks, insurers, and investors, stated that renewable energy investments are clearly understood as green investments and are currently attracting a significant amount of capital.

"The challenge lies in the middle ground, where some argue there are numerous shades of green," Usher stated during a panel discussion on the Internet of Things at the World Economic Forum in Davos, Switzerland.

According to Usher, companies that are still striving to make their businesses more sustainable are not yet considered truly green investments.

He explained that investing more capital to reduce emissions in heavy emitting sectors will increase your emissions profile.

Before capital can flow at scale, a lot of definitional work is required, as Usher stated.

The UNEP FI, founded in 1992, claims to be the first organization to involve the finance sector in sustainability. With the outbreak of Covid-19, sustainability concerns and investments have gained prominence as investors have poured funds into newly established funds.

As severe weather events intensified globally, more businesses sought to adopt sustainable practices. However, opposition to environmental policies has been mounting in places like the U.S. and Europe, leading governments to weaken their targets due to the high cost of implementation.

Net-zero work ‘hasn’t stopped’

This year's WEF summit focused heavily on the impact of artificial intelligence, with AI-derived misinformation and disinformation being ranked as the top risk for 2024, even ahead of climate change.

Despite the reduced prominence of net-zero emissions discussion at Davos this year, Usher stated that the work on this issue has not stopped.

While a more complex geopolitical landscape was also a concern for investors, sustainability remained a top priority as it focused on the long-term viability of their businesses.

He stated that the topic is centered on conducting business and how banks, investors, insurers, and actors in the real economy view their future. The question is whether one will be a future taker or a future maker.

Mark Carney stated in a separate interview with CNBC at Davos that he believed sustainability remained a top priority for investors.

In 2023, the investment in clean energy increased by 50% to $1.8 trillion from $1.2 trillion in 2022, according to Carney, who is the United Nations special envoy on climate action and finance and a former governor of the Bank of England.

He stated that there is a significant increase in investment in clean energy, particularly in electric vehicles and the entire supply chain.