One of the things that I keep thinking about in the ESG investing space is what the UN calls the inevitable policy response. In short, if we accept the fact that the climate is changing (and if you don’t you should stop reading this post and educate yourself on the science because there is absolutely no doubt that climate change is real) then we have to adapt our economy to this change. The costs of adapting to climate change are going to be huge and one cornerstone to finance climate change adaptation is going to be to put a price on carbon.