Climate Change demands Solutions.
It is critical that new climate tech solutions be developed and deployed. The difference between the previous and current administrations’ approaches to protecting the environment is estimated to be an added 4 billion tons of CO2 emissions by the US by 2030, which equates to the combined annual emissions of the EU and Japan. This is a significant chunk of the remaining carbon budget that the earth has — making achieving 1.5 degrees even more unlikely.
Climate Tech startups face significant challenges in the current environment:
- Launching products during a time of high uncertainty
- Securing revenue from developers of mega climate projects, including those that advance green hydrogen and direct air capture.
- Securing investments if their business plans are based, at least in part, on federal funding.
That said, Climate Tech startups have significant opportunities in the current environment:
- Providing solutions, such as solar power and batteries, that outperform fossil fuel technologies on unit economics. Note that fossil fuel state Texas is a leader in renewable energy.
- Providing point solutions that result in near-term positive ROI for the owners of utilities, industrial facilities and commercial buildings
- Enabling AI data centers to operate with less energy.