Greenhouse’s Post

What if the goal isn’t getting a German Climate Tech unicorn? At a recent Climate Tech Meet-up, I found myself questioning the prevailing narrative. As the politician advocated for an investment landscape mirroring the US, with special tax cuts for angel investors and loosening consumer protections to foster trillion-euro Climate Tech companies, I wondered: is this truly the path to net zero? While large-scale investment has its place, we must recognise the power of bottom-up community-driven solutions. As Audre Lorde powerfully stated, "... the master's tools will never dismantle the master's house." Meaning the structures of rapid growth and laissez-faire economics, which have significantly exacerbated the climate crisis, cannot be the way to end or even mitigate it. These initiatives could become the building blocks of a new, sustainable structure. By nurturing these grassroots efforts, we create a network of solutions tailored to local needs and powered by local knowledge. To effectively address the climate crisis, we need to tackle its root causes, empowering those who will feel its consequences most acutely. What if the goal isn’t getting a German Climate Tech unicorn? #justtransition #climate #climatetech #climatechange

Despite a downturn in climate-tech funding, opportunities are thriving in ventures harnessing AI, driving climate adaptation, and pioneering energy solutions. 🌍 Did you know? About 28% of recent climate tech deals focus on adaptation and resilience—innovations tackling climate risks like wildfires and floods. 🌱 Read more in our global report 'State of Climate Tech 2024': https://pwc.to/4iaYzLA

(Link in comments, FI) A few weeks back, my former employer, Running Tide, announced that it was winding down. While my time at the company was only a year, I learned a lot and gained colleagues and friends that will last. Here are five general points for the climate industry that are not included in the news story but that I feel that are worth sharing here. 1) 9 out of 10 startups fail. We probably need at least 30 technologies for carbon removal at the IPCC-recommended scale of 4-10Gt/year. One startup can realistically master one technology, and it means that we'll see 270 startups winding down. Sorry, 269. 2) We need ways to scale solutions and science simultaneously and at record speed. Sometimes, this means that something that is being scaled up turns out to be ineffective, but it's better than not doing anything for 10-20 years. 3) The media cannot repeat the decades of misleading information on climate change where reporting gave substantially more space for skeptics than would have been justified. They should keep actors accountable, though. 4) Politicians forge the playground and rules for it. As long as durable carbon removal is voluntary, the future market remains risky. As long as requirements for co-benefits and climate justice for durable carbon removal are not required, they won't happen at scale. Make all this mandatory and you'll see influx of investment and talent. 5) This might be controversial, but I think that the highest-paying jobs and most profitable companies should be those that contribute to a livable planet. In 2022 was the most profitable year for oil companies, $290 billion. I'd like to see a future where climate tech profits surpass oil company profits. I'm leaving many points out to keep it simple - maybe we'll see them in comments later. Lastly, if you are looking for talented and driven people with experience in carbon removal - there are a bunch available in US and Iceland. Feel free to reach out to me!

Glad that PwC's 5th annual State of Climate Tech report is released today! Our analysis on this year's PE and VC investment in the climate tech sector also includes a 'FOAK' section on Adaptation and Resilience (A&R) tech 💵 We provide the first ever breakdown of climate tech investment by climate impact (Mitigation/Cross-cutting/A&R) and find that 28% of deals have an A&R impact - much higher than previous estimates 🌊 Our A&R analysis couldn't all fit into the report, so do reach out if you'd like to hear more Emma Cox Will Jackson-Moore Shreekumar Rakshit James King Rebecca Osmaston Ferdinand Agu Jr. Mahima J. Olivia Byrne Flora Lonie Josh Rosenfield https://lnkd.in/eAv4UZtT

Excited to share PwC's 5th edition of State of Climate Tech report. Interesting points: 1. Underlying data set expanded significantly in 2024, growing from 8,000 tracked start-ups to more than 12,000. Insights based on review of over 52,000 deals with a total deal value of >US$600bn. 2. The share of climate tech deals done by corporates has hovered around 25% since 2019. PE/VC funds continue to lead on deal value and volume in this space, despite a decline in share of PE/VC investment from 10.3% (2023) to 7.8% (2024). 3. Growing trend trend for capital deployment focus on managing climate risks, not just reducing GHG emissions. Adaptation and resilience (A&R) technologies attracted 4% of total investment during 2024, with 88% going to climate mitigation and the balance going to 4. Climate tech start-ups built around AI raised US$1bn more in the first three quarters of 2024 than they did in all of 2023. Reach out to Ludo Findlay James King Emma Cox Will Jackson-Moore for a deeper discussion! See Ludo's post for link to the report.

Climate tech is growing...up. According to the excellent Sightline Climate (CTVC) newsletter this morning, climate tech investment is growing—total assets under management (AUM) rose 20% YoY to $164bn—but a lot of cash ($86B) is still sitting on the sidelines. I joined this space 3 years ago to work on technology that has inherently positive global impact. Energy ⚡ touches everything: economics, psychology, science, technology, global politics—it’s endlessly fascinating and impactful. But making progress isn’t easy, especially in an era where long-term change competes with short-term pressures. If you want to see what's happening across climate tech investment landscape today check it out 👇 https://lnkd.in/etSG3Nmv

Are we doing enough to bend the emissions curve? The "Net Zero Future50 Report – CEE Edition" suggests the next generation of climate tech startups could be the key. But with billions invested globally, where does the CEE region stand today? Unfortunately, it has attracted less than one percent of global climate tech investments. 📊 Frankly, that’s not enough. The rapid growth we do see is mainly driven by megadeals (over $100M) in sectors like Mobility and Transportation, Industry, Manufacturing, and Resource Management. While these are crucial areas, climate tech investment in CEE remains heavily concentrated here. With many CEE countries experiencing positive economic growth, we must direct more funding to scale up decarbonization technologies across the board. We need to ensure sectors like the built environment don’t get left behind in the race to meet the 2030 and 2050 decarbonization targets. The progress so far is promising, but is it enough? 🌎 At The VERT, we’re committed to doing our part. There’s still a lot of work ahead, and we’re gearing up for a busy Q4. I’ll be sharing more on our upcoming initiatives soon. 🙌 The challenge is significant, but together, we can rise to it. 👉 Link to the Net Zero Future50 report I mentioned: https://lnkd.in/dxr6Xcgv

I was honored to have my comments and perspectives about Brightly included in this Forbes article about how climate tech founders like me are reacting to the change in US government leadership. Thanks to Marianne Lehnis for the coverage and well-written piece. As noted, I look to corporations to double down on their climate commitments, and to entrepreneurs to remain innovative and resilient to make a difference in the years ahead. We are all in this together! https://lnkd.in/eJyi52C7

"Where possible, we used sources with defined and documented scenarios and assumptions, relying primarily on the work of the research organisation Project Drawdown." Informing climate work at one of the world's leading companies. #climatesolutons #climateatwork

Climate tech offers investors a mix of risks and rewards, balancing climate action with economic potential. This sector, vital for environmental sustainability, presents both challenges and opportunities for investors. Investors see climate tech as a field of both potential and uncertainty. The urgency for climate solutions drives interest, but emerging technologies bring inherent risks. Despite these risks, the rewards of investing in climate tech can be significant. These investments contribute to crucial environmental goals and can yield long-term financial returns. Investors must navigate the immediate challenges and future prospects of climate tech. Their strategic decisions are key in shaping both financial outcomes and environmental impact. Investing in climate tech involves a blend of financial acumen and commitment to sustainability. It's a complex but potentially rewarding endeavor that aligns economic success with environmental responsibility.