Financing for defence and climate change

National security financing is at the forefront globally, as the war in Iran drives energy prices into flux and US foreign policy places increasing pressure on Europe’s defence spending. Despite its political unpopularity in the US and a relative backseat in Europe, financing for the green transition remains at £1tn in 2025 and remain a critical concern for investors.

As energy prices surge, geopolitical tension and fragmentation are throwing the need for defence into sharp relief, while the increasing frequency and severity of climate shocks create unprecedented insecurity across the world. Nato characterises climate change as a ‘threat multiplier’, whereby physical damages to environments, geopolitical consequences of extreme weather and political instability all increase the likelihood and severity of conflict. Sustainability is no longer a nice-to-have, but a critical component of the long-term resilience and security of the nation.

This roundtable explores the intersection of defence and climate change, highlighting the dual necessity for the investment.