This week: Burgeoning biodiversity credits; rocking carbon removals; cooling coatings

Welcome back. More than half of the world’s best solar resource is in Africa. The continent also has 80% of the world’s platinum reserves, half of all cobalt reserves, 40% of manganese reserves and great potential for hydroelectric and wind power. But these riches are largely untapped and will remain so without significantly improved access to capital, according to a new report published by the International Energy Agency in partnership with the African Development Bank on Wednesday.

There are a variety of reasons why investment lags, but the bottom line is that the cost of capital for Africa is just too high. Borrowing costs on a large-scale renewable energy project on the continent are triple those of a similar one in advanced economies and China. Smaller projects are even worse.

proposed financial system changes, along with a host of new carbon taxes. While the taxes remain hotly contested, financial innovation could actually happen.

Why it matters

Higher investment would bring green electricity and cleaner, more efficient cookstoves to hundreds of millions of Africans, fostering health, development and growth in a continent with a fifth of the world’s population.

And if that isn't enough, the commercial reality is that the Global North needs these resources to transition our economies to clean energy. After all, we are racing to break our reliance on Chinese suppliers of critical minerals and metals.

If some of these financial innovations succeed, projects in the region should offer compelling returns to both locals and investors.

There are strategic considerations too: While many in the West have been stepping back, China has been investing heavily in the region, albeit with mixed results.

Tell me what you think: Send me your feedback and suggestions at rochelle.toplensky@wsj.com or reply to any newsletter. If you were forwarded this newsletter, you can sign up here.

Biodiversity credits could be key to funding the conservation of the Earth’s ecosystems, but setting up a functioning market to buy and sell these payment tokens won’t be easy, writes Joshua Kirby.

Protecting the world’s diversity of plants and animals has a direct bearing on the economy and companies: Around half of global output—some $44 trillion—is dependent on nature, according to research from the World Economic Forum. Roughly $600 billion to $800 billion more a year is needed to halt and repair the damage done to the natural world by global industry and agriculture, according to the think tank Paulson Institute.

Most of the world’s efforts to remove carbon from the atmosphere use giant, vacuum-like devices that suck in air and isolate the carbon. Microsoft is funding a new approach that uses crushed-up limestone to achieve the same result, writes Amrith Ramkumar. 

The tech company said Thursday it agreed to buy credits from startup Heirloom Carbon for the removal of up to 315,000 metric tons of carbon dioxide over 10 years. That would amount to a purchase commitment of at least $200 million based on market prices and would offset the equivalent of the annual emissions of around 70,000 gasoline-powered cars.

The deal will help Microsoft neutralize its carbon emissions and is one of the largest ever purchases of carbon-removal credits.

Cities across the U.S. have found relief from this summer’s record-setting heat with the help of technologies that shield roofs, pavement and other surfaces from the sun’s scorching rays, writes Eric Niiler.

Some of these technologies have been around for more than a decade but are experiencing greater demand as global temperatures rise. While others—such as super-reflective coatings for pavement, streets and windows—are just now becoming effective and affordable enough for widespread use.

• Help wanted: Women to fix America’s infrastructure  
• America’s offshore wind-farm revolution is broken
• EV rental cars: A product launch gone wrong?
• How German carmakers fell behind Tesla and China in the EV race
• Why investors are flocking to battery recyclers
• The forces pushing owners of empty building to go green
• Catastrophe bonds set for record issuance
• Warren Buffett’s green cash washes over coal country

• Though U.S. workers say they are leery of AI watching over them, the technology can help prevent injuries at the workplace
   
• Artificial intelligence is helping buildings go greener. Here’s how.
   
• Phishing attempts are being made indistinguishable from legitimate emails, but some security experts are using the technology to get ahead of attackers

• How to deploy heat pumps properly (GreenBiz)
• President Biden blocks drilling in Alaska's Arctic National Wildlife Refuge (Washington Post) 
• How Thermo King retrained workers for its electric pivot (Canary) 
• Climate change adds workplace costs and hazards (Reuters)
• Geoengineering: A quick fix to help cool the planet or a dangerous distraction? (Financial Times)
• Wildfires have caused Europe an estimated $4.43 billion in damage so far this year (Bloomberg)
• Grand slam tennis tournaments are getting hotter (AP)
• Home gardening is surprisingly effective at conserving rare plants (Anthropocene)

The forum on Oct. 12 will discuss critical topics for business leaders, including reporting to U.S. and European standards, how to account for risk, the role of artificial intelligence and what corporate decarbonization measures are proving effective.

Speakers include Professor Robert Eccles, Susan Uthayakumar, chief energy & sustainability officer at ProLogis and Maryam Golnaraghi, director of climate change & the environment at The Geneva Association. Register here.

WSJ Pro Sustainable Business covers environmental, social and governance issues. Send comments to Bureau Chief Rochelle Toplensky at rochelle.toplensky@wsj.com and follow her on X @RToplensky.