There are two economic approaches to climate change:

1. Ignore it and continue business as usual, exacerbating risks and costs.
2. Address it by investing in new, climate-friendly industries, both natural and industrial.

While the federal Administration seems bent on the first, many states are choosing the second.

One approach to the first is called “Betting Against Nature” bonds—catastrophe or “cat” bonds. Investors profit if climate disasters don’t occur during the bond term. Cat bonds were invented in the late 1990s after Hurricane Andrew’s $27 billion in damages. They market has grown from $1B to $51B, with 20% growth projected for 2025.

It is one way to make money from climate change.

Alternatively, we can “Bet on Nature” making (and saving) money as well as halting massive damages from climate change. The world’s annual temperature could well shoot past the Paris Climate Accord goal of 1.5 degrees Celsius (2.7 degrees Fahrenheit) warming before this decade ends. We can expect increased storms, droughts, heat domes, fires, floods and more.

Californians passed their $10B Climate Bond with a focus on partnering with landowners and land managers to boost climate resilience and reduce GHG emissions. These investments in restoration and supporting ecological management mitigate climate change, reduce risks and GHGs, save biodiversity and support many jobs.

You can make money off business as usual. It won’t reduce climate risk or costs; it will increase them.

Or, you can make money investing in land and people as a low-cost, no-regret, near-term climate solution that boosts rural economies and saves lives.  States are embracing it; perhaps the federal Administration will too.