Karen Fang was instrumental in shaping Bank of America’s industry-leading focus on mobilization $1.5 trillion in sustainable financial capital by the end of the decade, of which $560 billion had been deployed in just three years. Under her leadership, the bank emerged as a broker for renewable energy tax credits, providing a new financial avenue for the expansion of clean energy projects. In late 2023, Bank of America arranged construction financing for the SunZia Wind and Transmission project, the largest clean energy infrastructure project in US history.

What is the most important action you think the public, or a specific company or government (other than yours), needs to take in the next year to advance the climate agenda?

I believe that globally we need to further improve our evidence-based understanding of the interconnectedness of climate, health, nature, economic development and job growth. This requires a willingness to understand the real impacts on human health and nature/biodiversity from increasing severity of climate events, as well as the opportunity for sustainable and resilient growth and energy transition to create jobs and economic development for all. At its core, climate transition is a human story, and we need to tell that story better to inspire large-scale global action. Climate transition is not a long-term project. Tangible actions are needed now.

What’s one climate solution (other than yours) that isn’t getting the attention or funding it deserves?

Global climate finance has reached $1.8 trillion in 2023, growing at a healthy compound annual growth rate (CAGR) of 25% from 6-7 years ago. However, most of the funding goes to mature low-carbon technologies (such as wind, solar, batteries, electric vehicles, transport and grids) in developed countries and China. despite Inflation Reduction Act in the US and the European Green Deal, we still see promising new technologies (such as long-term energy storage, carbon capture and sequestration, waste-to-energy and e-fuels) not receiving enough funding. Emerging markets, facing budget constraints, rising interest rates and inflation, find themselves unable to meet the green premium required for the transition. Personally, I have spent a lot of time leading various task forces and global efforts for the United Nations, Business 20 for the G20 in Brazil, and the Rockefeller Foundation’s Climate Advisory Council to promote blended finance solutions that increase funding for emerging economies and innovative technologies with – risky partners, but we can and must do much more here.

If you could stand up and talk to world leaders at the next UN climate change conference, what would you say?

Climate change has had a tremendous impact on our health, nature, biodiversity and communities. In a world where geopolitical and macroeconomic pressures are constraining government budgets and consumer spending, it is easy to doubt the practicality of a global transition to a low-carbon world. The cost – known as the green premium – is still high and we need transparency and stability in policy, both in incentives and legislation, to catalyze more investment in emerging decarbonisation technologies and emerging markets for a transition just and fair. In the long term, a sustainable and more resilient world will present real opportunities for job growth and economic development, where direct human impacts can also be mitigated and the vitality of nature and communities can be preserved. In addition to efforts to mitigate carbon emissions, I hope that governments will be able to use more foreign aid and subsidies to embed more resilience and adaptation finance from the private sector. Prevention is cheaper than cure, and the cost of investing in climate-resilient infrastructure should be less than the cost of disaster relief. With the public and private sectors working together, we can address each risk factor and identify the most effective way to unlock more capital to meet this global challenge.