Fintech Aids Climate Change Catastrophe

February 20, 2021
Kevin Larkin

It’s not breaking news that climate change is ravaging the planet at an alarming rate, and if major strides aren’t made soon even more irreversible damage will be caused. Recent predictions have stated that if climate change continues at the current rate in Ireland, rainfall could increase in winter and decrease in summer, as well as sea and air temperatures could increase two degrees each over the next sixty years, causing massive storms. Even just this year we have seen California burning and Texas freezing over in the US and an increased 9.5% of the Amazon Rainforest being destroyed just over the past year. So can fintech be our saving grace and finally push the tide back in our favor?

It appears that this will be a common trend for fintech to follow, and certainly for the better. We’ve already seen the massive popularity and appeal of Tesla over the last decade, and will most certainly start to see more and more electric and self-driving cars filling our streets. As they become more popular, and with more advances in technology making everything cheaper, we may see these vehicles reaching more accessible prices to the masses sooner rather than later. Another company making strides towards climate reform is the global payment service Stripe with their Stripe Climate program. According to Stripe’s website, Stripe Climate will allow businesses to “direct a fraction of (their) revenue to help scale emerging carbon removal technologies.” This program has already seen massive global success and appears to be growing in popularity, as over 100 companies in Europe have already signed up to participate.

Banks and investors are also hopping in on the trend, which is great news at the scale and accessibility their actions take place. Cooler Future has a beta platform up now which allows investors to specifically invest in companies specializing in climate reform. According to their website, this not only encourages returns for investors, but returns for the planet at large. Aspiration is a financial partner that allows customers to round up their purchases to the nearest euro and will donate the change to plant trees.

Although it’s great to hear many companies are willing to make that stride towards green options for their consumers, the bottom line will be if they remain profitable. Only time will be able to tell if they will be able to compete with their rivals in the industry, but as of right now it’s looking very promising.

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