The Untapped Climate Opportunity

Climate change is one of the biggest threats facing our planet today. With greenhouse gas emissions continuing to rise, we must find innovative solutions to reduce emissions and mitigate the impacts of climate change. One promising solution is the development of alternative proteins, which could offer a significant and untapped opportunity for climate financing.

Alternative proteins, which include plant-based proteins and cultured meat, have the potential to reduce greenhouse gas emissions from animal agriculture drastically. Animal agriculture is responsible for a significant portion of global greenhouse gas emissions, with estimates ranging from 14.5% to 51% of all emissions.

According to a report from RethinkX, alternative proteins could capture up to 10% of the global meat market by 2035. This shift would result in a reduction of up to 2.4 gigatons of greenhouse gas emissions annually, equivalent to taking 527 million cars off the road. Furthermore, the report suggests that this shift could save up to $1.4 trillion in environmental costs by 2050.

Biggest Emissions Cuts Per Dollar

According to Boston Consulting Group, investment in plant-based meat delivers the biggest emissions cuts of all sectors, at roughly 4.3 billion tonnes of CO2-equivalent saved per $1 trillion invested — far ahead of cement, iron and steel, chemicals, buildings, cars, shipping, electricity, aviation, and trucks.

• The shift to alternative beef, pork, chicken, and egg alternatives will save more than one gigaton of CO2e by 2035.
• Producing animal alternatives emits 30% to 90% fewer GHGs than conventional meat, fish, dairy, and egg production.
• Cultivated meat requires up to 78% less water than beef, and plant-based meat requires 99% less water than conventional meat.

Capital Requirements

According to BCG's report Food for Thought: The Protein Transformation, almost 30 million tons of bioreactor capacity for microorganisms and animal cells will be needed in the base case, requiring up to $30 billion in investment capital. The extrusion capacity needed for plant-based proteins will require up to $28 billion in investment. In APAC alone, PwC, Rabobank, and Temasek estimate $750 billion in additional funding is needed by 2030 to meet rising protein demand.

Alternative proteins offer a significant and untapped climate financing opportunity. By investing in the development and scaling of these technologies, we can reduce greenhouse gas emissions, create economic opportunities, and contribute to sustainable development.