The recent release of the Intergovernmental Panel on Climate Change report offered some grim warnings. But it also serves as a reminder and opportunity that we can solve climate change.

But to do so, we need to deploy the two most powerful engines in the history of humankind: 1) the scientific process that can deliver innovations, and 2) capitalism.

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To harness those two machines of human ingenuity, we need to better engage our engineers, investors and entrepreneurs to unleash more creative enterprise, something that can be supported by Democrats and Republicans alike.

Despite the real dangers flagged by the climate report, there are many reasons to be optimistic.

Consider the following:

Renewable energy from wind and solar have become cost competitive with fossil fuel power generation, and the price of renewables continues to fall. Electric cars — when powered by clean sources of electricity — have proved to be a path to decarbonize our daily commutes.

Nuclear power can deliver reliable, zero-carbon electricity that can address the intermittency concerns of wind and solar. There is also work underway to improve the economics of nuclear energy using modular reactors.

We can also produce fuels in sustainable ways and displace many carbon-intense fossil fuels in the process. For nearly 150 years, we’ve known how to use electricity to split water into hydrogen and oxygen. Today, we can use electricity generated from renewable sources to convert that hydrogen into high-value fuels such as methane with net-zero carbon emissions. We can also convert biomass into liquid fuels for transportation and industrial processes. We can use all of these methods and more to construct fuels to power systems that are hard to electrify.

Furthermore, carbon- capture works, whether it be at a power plant or by reforestation. We need to work on the problem at scale, but there’s no reason to think we can’t sequester carbon in one form or another.

All of these solutions, and more, including relatively simple changes to city design and consumer behavior, face almost no technological hurdles. So it would be in our best interests if everyone would stop acting as if we don’t have the solutions. We can solve this problem.

These solutions do face economic barriers, however. But even there, we have room to be optimistic.

The core nature of capitalism is mutually beneficial exchange. The simple fact that both parties in a transaction can come away in a better situation is the most powerful concept ever deployed to lower the cost of goods and services in a robustly competitive marketplace.

We need to recognize the power of this mechanism and continue deploying it to address the financial challenges that climate change presents. Ultimately, climate change is not a technological challenge —; it’s an economic one.

To solve this economic challenge, we need to recognize the cost of dumping our emissions into the atmosphere is not reflected in the marketplace.

But, we can fix that. The 2018 Nobel Prize for economic sciences was awarded to William Nordhaus and Paul Romer for describing how technological innovation and policy can leverage the power of the markets to address the climate crisis.

We should double down on public spending on research to continue development of new technologies.

And perhaps even more importantly, we need to listen to Nordhaus by immediately pricing carbon so that entrepreneurs can deliver the means by which we can address climate change.

Quite simply, if we accelerate the development of technology and properly price emissions, we will solve this problem. But to avoid unintended consequences, Republicans and Democrats alike should look closely at the carbon fee and dividend proposal to ensure that carbon taxes are not regressive.

With the proper policy and market signals, we will pave the way for entrepreneurs to solve our remaining problems. Those entrepreneurs will inspire people to live a life of lower carbon intensity, not by shaking our fingers at them, but by giving them choices in the marketplace that are too compelling to pass up.

For that, we should be optimistic. We should lean into the challenge, get to work and build an economic machine that can decarbonize the world.

Todd Davidson is a research associate in the Energy Institute at The University of Texas at Austin.