Ignore the doomsayers: capitalism is saving the planet

Psychologists largely agree that we all live with an inner pessimist. Why? Because for most of human history, reacting to danger – real or perceived – was essential for survival. This has left us biologically wired to overreact to threats and underreact to good news, which helps explain why emotional, end-of-the-world-style stories tend to stick with us more than balanced ones – even when the facts point towards progress.

The climate issue is a case in point. Doom-laden tales of climate apocalypse often resonate with a deep part of our psyche. Yet the real story is far more nuanced – and in many ways, uplifting. It is a story of innovation, entrepreneurship, moral awakening and practical problem-solving. For countries like the UK it is also a story of opportunity. 

Climate change: a catalyst for innovation

As political and economic ambition around climate policy has increased, the world has seen a daily stream of breakthroughs. Most of these have not been headline-grabbing individually, but taken together they have certainly been transformative. A few highlights:

• Ozone recovery: Thanks to the near-total elimination of ozone-depleting substances (and creative substitutes), the ozone layer is recovering.
• Transport electrification: Electric vehicles are now breaking new records year after year. While battery production remains energy-intensive, meaning the net climate benefit is still not as large as sometimes advertised, the shift to yet cleaner manufacturing is clearly underway.
• Renewable energy surges: The price of solar modules has plummeted due to global oversupply, and the cost of building new large-scale solar power is now among the lowest – and often the very lowest – compared to other new energy sources in many regions.
• Greener cities: Major cities – London included – are reducing emissions despite growing populations.
• China’s pivot: China – until recently seen as the world’s worst environmental offender – is now the largest global producer (and installer) of both solar and wind power. Its transport sector is electrifying at breakneck speed, and air quality in cities once choked by toxic pollution has improved significantly.

Why the UK is uniquely positioned

The UK’s strengths – world-class universities, a strong entrepreneurial culture and a mature venture capital ecosystem – make it an ideal launchpad for climate innovation.

We already lead in key areas: offshore wind, clean hydrogen, carbon capture, sustainable agriculture and even fusion research. These successes aren’t just environmental wins – they’re exportable technologies that can drive global decarbonisation while boosting UK economic growth.

Yes, regulatory overreach and inefficient subsidies have caused setbacks. But no major transformation is without its stumbles. With the right course corrections, the UK can be a frontrunner.

We also benefit from strong ties with the US innovation ecosystem – still the global leader in climate tech due to its scale, education system, deep pockets and even more seamless interplay between universities, entrepreneurs and venture capitalists. Collaboration, not isolation, will be key.

AI: accelerating innovation

Artificial intelligence helping to combat climate challenges is not a futuristic promise – it is already optimising heating systems, forecasting weather, managing energy grids, slashing waste and assessing environmental data in real time. Progress is already happening and it requires no oracle to predict we are only seeing the beginning.

Beyond turbo‑charging innovation, AI can shine a light also on issues such as politicisation and greenwashing. For decades, politicians, academics and lobbyists have been strongly incentivised to amplify alarmism – claiming catastrophe is avoidable only if they get more influence, funding or regulation. Now, with massive data‑processing muscle, AI can quicker than ever spot correlations between policy proposals, lobbying, budget allocations and actual climate impact.

AI also makes it a lot easier to identify doomsday scenarios based on improbable (but useful) model assumptions. As analytical transparency becomes the norm, prestige ‘green’ projects – rhetoric‑heavy but impact‑light – will also face new scrutiny. The upshot? Future resources can be allocated to where they really maximises a positive climate impact.

The power of entrepreneurs

Private innovation is increasingly complementing government action, often driving impact where bureaucracy falls short. A prime example from the foreign aid sphere is the Bill and Melinda Gates Foundation. The Foundation’s investment in vaccines, low-cost diagnostics and nutrition has saved millions of lives, pushed polio to the brink of eradication and sharply reduced child mortality in the world’s poorest regions. The Gates Foundation’s approach – hands-on, streamlined and laser-focused on results – famously stands out in contrast to slower-moving government agencies. 

Or take an organisation like Cool Earth, co-founded by Frank Fields and Johan Eliasch, which works in partnership with local communities to protect the rainforest – one of the planet’s most vital carbon sinks. Rather than focusing solely on land conservation, Cool Earth channels resources directly to indigenous peoples, whose traditional knowledge and on-the-ground presence have proven critical in the fight against deforestation. The organisation’s approach has been widely praised for its cost-effectiveness and for successfully combining climate impact with local social development.

Ocean Born Foundation is another entrepreneurial example. It blends brand-building (like Ocean Beer) with conservation, investing all its profits back into tangible environmental projects. 

The Children’s Investment Fund Foundation (CIFF), founded by Sir Chris Hohn, has channelled vast resources into climate policy reform, clean energy and air quality initiatives – particularly where public health and climate intersect. With a strong emphasis on evidence, impact and scale, CIFF exemplifies how strategic philanthropy can accelerate global decarbonisation.

Organisations like these have often been able to quickly and flexibly identify and support promising climate solutions – frequently in collaboration with local stakeholders and researchers. Their success is also encouraging the public sector to adopt a more results-driven and pragmatic approach, especially as public–private partnerships become increasingly common. This allows both sectors (and the planet) to benefit from each other’s complementary strengths and networks.

From panic to progress

It is fair to say the recent wave of climate alarm has had a silver lining: heightened awareness. Public attitudes have shifted. Consumer habits are evolving. But an alarm that never stops ringing – and leads young generations to believe that a hopeless future is backed by science – leads to despair and, in many cases, depression. Hardly the right mindset for rolling up our sleeves and tackling key challenges.

History clearly shows that we humans are at our most innovative when the pressure is greatest. Whether facing pandemics, energy crises or environmental challenges, we have repeatedly reimagined the possible, collaborated and found solutions no one thought achievable – adapting even to new and partly irreversible realities. There is no reason to get locked into thinking that climate change is the first existential crisis that cannot be overcome. Especially now that innovation is accelerating at breakneck speed thanks to AI.

Of course, tribal voices will always cry ‘climate denial’ or ‘climate alarmism’, depending on which bubble they inhabit, unless their entrenched thoughts are uncritically applauded. Still, there is every reason to think that the majority – people who typically have better things to do than moralise immorally in every comment thread they can find – want mature, solution-focused dialogue that recognises complexity and welcomes grown-up trade-offs. Especially during a transition period. 

Away from the tedious comment threads mentioned, that is exactly where the conversation is already heading: away from hyperbole, towards authenticity, transparency and problem-solving.

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