In a groundbreaking development for the energy sector, researchers have unveiled an innovative financial solution aimed at overcoming the barriers to investment in carbon capture technologies. Led by Serhat Yüksel from The School of Business, İstanbul Medipol University, this study introduces a sophisticated artificial intelligence (AI)-based hybrid fuzzy decision-making model designed to enhance the effectiveness of investments in this critical area.
Carbon capture technology has long faced significant hurdles, including high costs, technical challenges, and uncertainties in policy frameworks. These obstacles have stymied investment, despite the urgent need for solutions to combat climate change. Yüksel emphasizes the importance of developing financial products that can navigate these complexities. “Cost-effectiveness must be prioritized in the development of new financial products,” he asserts, highlighting the need for a strategic approach that balances investment risks with potential returns.
The research employs a novel spherical fuzzy DEMATEL method to assess and prioritize the various factors that influence investment in carbon capture technologies. By integrating AI methodologies to calculate the weights of expert opinions, the study establishes a robust framework for identifying the most critical features necessary for innovative financial products. The findings suggest that flexibility in financing options and effective risk management should be central to these new offerings.
This innovative approach could reshape the landscape of sustainable investments, making it easier for companies to fund carbon capture projects. “Technological competence is another aspect that should be considered in this process,” Yüksel notes, underscoring the interplay between financial innovation and technological advancement. As the energy sector increasingly turns to carbon capture as a viable solution for reducing greenhouse gas emissions, the insights from this research could pave the way for more accessible funding mechanisms, ultimately driving wider adoption of these technologies.
Published in ‘Financial Innovation,’ this study not only contributes to the academic discourse surrounding sustainable finance but also provides a practical roadmap for investors and policymakers looking to support carbon capture initiatives. As the world grapples with the impacts of climate change, the implications of this research could be profound, fostering a new era of investment strategies that prioritize both environmental sustainability and economic viability.
