VC Funding in Climate Prediction Tech Startups Soars Up

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The renewed need to focus on predicting weather or climate and protecting against its impacts makes ClimateAi’s platform and other climate prediction tech startups more important than ever, attracting more funds from venture capital investors. 

Climate change is quickly hastening and its impacts are destroying food production and infrastructure, depleting water resources, and killing lives. Its effects are obvious, from immense heat waves to destructive floods and wildfires. 

Meanwhile, there has been a growing group of climate intelligence startups using AI and data to predict weather like ClimateAi. They’re increasing in number quickly, which VCs believe to significantly make communities and businesses adapt to climate change. 

Investment Into Climate Tech Startups Skyrockets

Studies show that extreme weather events are likely to become more frequent or more intense as the planet heats up. So what’s that got to do with startups?

From predicting any chances for rain for a planned vacation to possible flood or fire incidence of constructing properties, climate tech startups offer both consumers and companies weather prediction services. 

They use AI along with a host of data points from satellites to provide real-time weather and climate determinations.

And as the effects of climate change get worse, the data that these VC-backed startups produce and manage keep on growing. So does the amount of VC funding they receive; weather prediction is a hot theme among funded tech startups recently.

According to Crunchbase data, investments into weather and climate prediction startups went up, from over $145 million in 2017 to over $541 million in 2021. A sample of investment in the space revealed at least 23 startups focusing on climate prediction have secured funding. 

ClimateAi, in particular, had raised $22 million last month in its Series B funding round led by Four Rivers Group. Other investors that participated include Neotribe’s Ignite fund, Yaletown Partners, Radical Ventures, Neotribe Seed Fund, and Academy Investor Network.

ClimateAi: What it Does and How its Platform Works

The new round brings ClimateAi’s total funding to $38 million. Since its oversubscribed Series A fundraising, the climate tech startup had grown its annual revenue by a factor of 5. The California-based startup had also increased its customer base 4x. 

ClimateAi’s unique platform, ClimateLens, uses AI technologies to produce actionable weather and climate-related insights for businesses worldwide. 

The startup works with companies across industries to build climate resilience, from research and development to operations and supply chain. These include agriculture, food and beverages, manufacturing, finance, apparel, retail, energy, and government and NGOs.

The company’s technology can identify locations for climate-smart expansions for certain crops and manufacturing sites, for instance. 

Their data can also help manufacturers adjust shipment or delivery schedules to maximize efficiency at times of good weather. It could help wineries as well to learn which places will have more rainfall to plant crops next season.

ClimateAi’s climate resilience platform also helps companies and governments in the aspects of climate risk management, asset diligence and portfolio management, demand planning, sales and marketing, and sustainability and TCFD reporting.

Proceeds from the latest funding round will be for expanding into new territories such as India and low-income countries where climate adaptation is urgent. The funds will also help the climate tech startup grow its team for continued AI-backed innovations in climate resilience. 

Climate Tech Innovations Across Sectors

As climate change issues seep through all sectors, the applications for climate prediction technologies are increasing and widening. These climate technologies are also scalable, the reason why VC investors are pouring money into this growing sector. 

Many of the startups operating in this market are using the platform-as-a-service model. This allows them to use the same climate data for various purposes and offer them to different entities.

That only means weather and climate tech startups have found their way into almost every sector, expanding from the agriculture and energy industries. ClimateAi’s CEO, Himanshu Gupta asserted that:

“Tomorrow there’s going to be every company on this planet Earth whose operations and supply chains will be impacted by climate change… And if they act on it, it will lead to not only increased profits for these companies, but also improved resilience for the communities they serve.”

Venture funding into climate-risk startups favor the areas of property, travel, and insurance since 2017. 

Another climate-focused startup, One Concern, closed over $22 million to help real estate developers understand climate risks to their properties. The climate resilience tech firm enables companies to focus on their adaptation strategies through its resilience analytics. 

Tomorrow.io, a SaaS weather intelligence platform that provides real-time weather forecasts, has raised $20 million to help retail and sporting businesses cut down energy expenses using climate analytics.

As more and more sectors are bearing the brunt of the climate crisis, climate prediction startups will also see more investors backing up their innovations. 

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Protected: American Lithium – The True Story of Nixon’s Nucleargate

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Revolutionary Ocean Capture Technology: Turning the Tide on Climate Change

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Caltech researchers have founded a startup called Captura, which aims to develop direct ocean capture (DOC) technology. This technology seeks to filter CO2 out of seawater, enabling oceans to absorb more greenhouse gasses. 

As a result, less CO2 remains in the atmosphere, which contributes to climate change. 

The project has the backing of fossil fuel giants and Big Tech companies. However, the technology is still in its early stages and needs to prove its effectiveness and potential side effects.

Harnessing Henry’s Law to Combat Climate Change

Captura was established in 2021 and subsequently won a $1 million award from Elon Musk’s XPrize competition in 2022. With funding from the US’s largest gas utility, the startup is now setting up its most significant pilot project at the Port of Los Angeles. This project will test the feasibility and environmental impact of the technology.

The underlying principle of Captura’s technology is Henry’s Law. The law seeks to establish an equilibrium between the concentration of CO2 in the atmosphere and the oceans. 

The Captura DOC Process

The Captura process starts by pulling a stream of filtered ocean water into its system. Less than 1% of this water is pre-processed to purify the seawater into pure salt water. This water is then processed in the company’s patented electrodialysis technology. 

By drawing CO2 out of seawater through electrodialysis, the technology aims to capture the gas for storage or sale as a product. Once treated, the CO2-deficient water is released back into the ocean, allowing it to absorb more CO2 from the atmosphere.

Captura’s process uses only renewable electricity and ocean water to remove CO2 from the air with no by-products and no absorbents.

Addressing Environmental Concerns and Industry Skepticism

The pilot project at the Port of Los Angeles is a significant scale-up compared to Captura’s first pilot in Newport Beach, California, launched in August last year. This new direct ocean capture project aims to remove approximately 100 tons of CO2 from the ocean annually. This amount is equivalent to taking 22 cars off the road for a year. 

The primary goal of the pilot is to test the technology under real-world conditions and ensure its impact on ocean water is benign.

Captura’s First Pilot in Newport Beach, California


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However, conservation groups have expressed concerns about the technology’s potential risks. One such risk is the possibility of plankton being filtered out during the water treatment process. 

Plankton forms the base of the entire marine food web, and many other marine animals depend on these microscopic organisms for sustenance.

Another concern is the potential for increased industrial activity and noise pollution in already stressed marine ecosystems. The technology requires the filtering of seawater, which could lead to additional stress on marine life. 

Moreover, the long-term storage of captured CO2 raises questions about the environmental impact and potential leakage of stored gas.

Skepticism also arises from the involvement of fossil fuel companies in funding carbon removal projects. Critics argue that these companies may be using carbon removal technologies as a distraction from the need to reduce fossil fuel extraction and use. This skepticism has led to questions about the technology’s role as a genuine climate solution.

Bolstering the Value of Direct Ocean Capture

Despite these concerns, Captura has secured a contract with Frontier, an initiative backed by Stripe, Alphabet, Meta, Shopify, and McKinsey. The goal of this initiative is to make it easier for companies to offset emissions through emerging carbon removal technologies. Through Frontier, Captura plans to sell carbon credits representing tons of CO2 removed from the ocean.

The carbon credits will likely come from another pilot plant scheduled for construction next year. By selling these credits, Captura aims to demonstrate the value of its technology in combating climate change. 

The success of the pilot projects will be crucial in determining the viability and environmental impact of DOC technology.

In conclusion, Captura’s direct ocean capture technology has the potential to make a significant contribution to reducing CO2 levels in the atmosphere. However, the technology is still in its infancy and must prove its effectiveness and environmental impact. 

The involvement of fossil fuel companies in funding carbon removal projects raises concerns about the technology’s role in truly providing a climate solution. Despite this, the DOC startup still managed to secure a contract with large companies. 

The results of Captura’s pilot projects will be crucial in determining the technology’s potential as a viable and eco-friendly solution to combat climate change.

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Carbon Credits and the Sustainable Development Goals: Aligning Climate Action with Global Priorities

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Carbon credits from climate actions represent a crucial part of a strategy to mitigate climate change while supporting the global priorities on advancing sustainable development goals. 

This decade has been dedicated by the United Nations on restoring ecosystems and reversing their degradation. A successful completion of this huge task achieves a lot of priorities – abating climate change, alleviating poverty, promoting equality, etc. Collectively, they are aligned under the UN’s 17 Sustainable Development Goals (SDGs).

Carbon credits are a well established market mechanism that allows organizations or companies to tackle their greenhouse gas emissions by supporting projects that reduce or remove carbon. These projects often involve land management practices that sequester carbon, making them critical in achieving the Paris Agreement climate goals. 

But more importantly, they can also meet many of the sustainable development goals. This article will explain how carbon credits can help in aligning climate actions with global priorities on SDGs.    

Pricing Carbon is A Climate Action, Plus More

Assigning a real-world value to the cost of emitting CO2 and other GHGs through carbon credits receives both criticism and appreciation. Some consider it greenwashing while others find it an essential tool to reverse the effects of climate change. 

But most people agree on one point – putting a price on carbon forces individuals and companies to pollute less.

Thus, it’s not surprising that carbon credits have become popular as companies strive to reduce their carbon emissions. And as more money is poured into climate action, more corporations are looking to offset their emissions through carbon credits. 

Carbon credits are from activities or projects that avoid, reduce, or remove CO2 emissions. Each credit is equal to one tonne of avoided, reduced, or removed carbon. 

Industry estimates show that demand for carbon offset credits will increase exponentially, primarily because of corporate net zero pledges. These commitments will bolster trading of carbon credits in the voluntary market (VCM), funding actions that mitigate the climate. 

A lot of large companies find that investing in actions that generate carbon credits is the best option they have to curb their emissions. But some of them don’t know how or which projects align with SDGs that match their corporate sustainability priorities. 

Not all carbon offset projects may cover a broad range of sustainability areas. But each project can produce other benefits that go beyond carbon sequestration. The financing provided through carbon credits can bring other social and economic benefits, otherwise known as co-benefits. 

The Value-driven Model of Carbon Credits

There are various ways in considering carbon credits but not all projects factor in the additional value of delivering sustainable development. Some, like the cost-based model, take into account the costs of implementing a project while ensuring its viability. 

It takes into account the costs of implementing a project while ensuring its on-going viability. But they miss factoring in the socio-economic benefits delivered by a project. That’s what the value-driven model tries to address. 

For example, community-based clean cookstoves projects, which often deliver health benefits to women and children, often have higher value than large-scale renewable energy projects, for instance. So, if the carbon offsets these projects produce reflect those co-benefits, they’re priced or valued more. 

Co-benefits also refer to the United Nations’ 17 Sustainable Development Goals.

Some carbon standards consider the beyond-carbon impacts of a project and reflect them in the final price of carbon credits.

Here’s an example of various project types that have different shared values based on the SDGs they deliver.

Source: Gold Standard

The Agenda for Sustainable Development: UN 17 SDGs

The 2030 Agenda for Sustainable Development, adopted by the UN parties in 2015, is a roadmap to ensure sustainable social, environmental, and economic progress worldwide. At its heart are the UN 17 SDGs, an urgent call for action by all countries in a global partnership.

The United Nations 17 Sustainable Development Goals

They believe that ending poverty must go hand-in-hand with improving health and education, lowering inequality, and bolstering economic growth – all while tackling climate change.

Though climate action, SDG 13, is one of the goals, it should go together with other sustainable development areas. 

The Paris Agreement builds upon the global efforts and priorities specified under climate action and sets GHG emissions mitigation targets. It aims to prevent global warming from going above 2°C in this century relative to pre-industrial levels. It also promotes climate adaptation, mitigation, and finance to fight the climate crisis the world faces.

The Agreement advances cooperative approaches where countries can work together voluntarily to meet their climate goals. It also establishes the carbon credit market that facilitates climate action, supports sustainable development, while ensuring environmental integrity and transparency.

The creation of the 17 SDGs provides important momentum for integrating sustainable development into international carbon market agreements.

Alignment of Carbon Credits and Sustainable Development Goals

Climate change mitigation and co-benefits can go hand in hand if considered from the early stages of the project. Careful integration of sustainable development goals into a carbon credit project’s blueprint can ensure their successful delivery.

Most often, nature-based climate solutions like afforestation or improved forest management projects (REDD+) produce higher valued carbon credits. But carbon credits with several co-benefits or bundled with sustainable development goals keep on creating higher or premium values. 

Let’s provide two examples of projects that successfully align climate action with global priorities on SDGs. 

Water Borehole Project

One example is the water borehole project by Plannet Zero in Mozambique, a country in southeastern Africa. The project involves the installation and repair of water boreholes throughout the Manica province in western Mozambique.

The boreholes provide access to clean water and eliminate the need for boiling water to make it safe for drinking. The project is also reducing about 10,000 tonnes of CO2 or its equivalent each year. 

Apart from its carbon reduction outcomes, the project also delivers several co-benefits and SDGs.

Water borehole project co-benefits:

3125 additional people gain access to safe water
Improvement of indoor air quality due to reduced need to boil water 
Reduction in the occurrence of water-borne diseases locally 
Time spent collecting firewood will be reduced by >30 minutes a day with the removed need for wood fuel to boil water
The boreholes are monitored and tested annually for water quality
Water point committees will be set up and trained to ensure that they are empowered to manage the boreholes

The project delivers these specific sustainable development benefits:

SDG 3: Good Health and Well-being
SDG 5: Gender Equality
SDG 6: Clean Water and Sanitation
SDG 13: Climate Action

The boreholes covered by the project will be powered entirely by emission-free technologies such as hand or solar-powered pumps. They, in turn, produce carbon credits linked with other sustainable development goals the project meets.

Clean and Efficient Cookstoves

Most of the household cooking in many countries in Africa and Asia is done by women. They also spend a lot of time collecting wood for fuel and often cook indoors without proper ventilation. 

The clean and efficient cookstove project by Gold Standard seeks to tackle the major development issues of this cooking practice. The goal is to serve the most vulnerable communities while tackling health issues associated with traditional cookstoves while promoting financial security and women empowerment. 

The project generates verified carbon credits, sold and in turn, deployed more efficient cookstoves. 

Source: Gold Standard website

Apart from delivering about 950,000 tonnes of emissions reductions that help fight climate change, SDG 13, the project also brings these other sustainable development benefits:

SDG 1: No Poverty – Households used less of their income and time on acquiring wood fuel, while also offering direct consumer financing or access to microfinance institutions.
SDG 3: Good Health and Well-Being – By reducing fuel consumption by 50%, indoor air quality improved, which reduces related health problems.
SDG 5: Gender Equality – Women need less time daily to gather wood fuel, and some of them are recruited and empowered as cookstove entrepreneurs. 
SDG 7: Affordable & Clean Energy – The cookstoves burn biomass fuel more efficiently.
SDG 8: Decent Work and Economic Growth – More time to look for additional employment as well as job opportunities in cookstove production.
SDG 13: Climate Action – Reduced carbon emissions
SDG 15: Life on Land – Reduced wood sourcing from non-renewable sources, reducing deforestation.

Various Climate Actions Flowing to Each SDG

At the center of a successful climate action or project that generates carbon credits is partnerships – the UN SDG 17. Both the water borehole and cookstove projects facilitate cooperation among private sector, governments, and nonprofits to achieve desired development goals.  

An investor that considers only a carbon project in terms of its carbon reduction benefits is choosing the tree over the entire forest. Opting for carbon credits that supports a number of sustainable development goals that also align with corporate sustainability delivers great benefits. 

Apparently, each SDG has its own targets to achieve but it can also tackle other development issues like SDG 13. More significantly, every climate action can deliver impacts that flow to more than just one SDG. 

Moreover, meeting other sustainable development goals are also eligible for producing different types of carbon credits. 

For example, projects that speed up the clean energy transition (SDG 7) can generate renewable energy credits. This type of carbon credit is from replacing fossil fuel energy sources by renewables such as hydro, solar, and wind.

In sum, investing in carbon credit projects is more than worth it. They can be developed or implemented in a way that mitigates effects of climate change while also addressing other global sustainable priorities. 

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Ex-NBA Rick Fox’s Startup Raises $12M in Pre-Seed Investment

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Partanna, a startup co-founded by former NBA star Rick Fox, has secured a $12 million pre-seed investment from Cherubic Ventures for making concrete that avoids and removes carbon dioxide, which generates carbon avoidance and removal credits in return. 

Partana is now valued at $190 million, according to PitchBook data.

Cement Carbon Pollution

Cement is the most widely-used substance after water. The global cement industry is responsible for emitting 8% of the total carbon footprint, much more than aviation’s emissions. 

If the industry were a country, it would be the 3rd-biggest emitter of CO2 in the world, after the U.S. and China. Its emission comes from the huge amounts of CO2 emitted by burning fossil fuels, which is often coal. 

Producing Portland cement, a binder holding the aggregates together, requires heating limestone and other minerals at elevated temperatures. The process releases tons of CO2 into the air. 

And that’s what Partana is trying to change with its unique concrete formulation perfected by the company’s co-founder Sam Marshall.

Partana’s Concrete: Removing Carbon Like a Tree

Based in the Bahamas, Partanna was founded in 2021 together by Rick Fox and Sam Marshall. The company claims that its carbon-negative building material is just as affordable, versatile, and durable as traditional cement.

But how Partanna’s concrete is made is much better for the environment and the construction industry in general. 

Instead of using Portland cement, a big source of CO2 emissions, the concrete startup is using a special mixture of natural and recycled ingredients cured at ambient temperature. They don’t use high-energy process that pollutes the air and warms the planet.

What makes Partanna’s concrete a game-changer in the construction industry is the use of locally-sourced recycled components, reduced processing costs, and the generation of carbon credits. 

Brine and Slag 

These are two key components of Partanna’s concrete. 

According to the U.S. Geological Survey, the world generates around 190 million – 280 million metric tons of steel slag, a waste product from steel production. 

Meanwhile, about 16,000 desalination plants worldwide are producing brine, which Partanna uses instead of freshwater. If applied at a large-scale desalination plant, Partanna’s brine technology can remove millions of units of CO₂ each day. It can also reduce the amount of brine that ends up in the oceans and waterways.  

Using steel slag and brine replaces Portland cement as a binder in making Partanna’s concrete. This makes the building material production capable of reducing both energy costs and carbon emissions. 

Plus, the chemical reaction called carbonation during the material’s curing process removes CO2 from the air just like a tree. 

While regular cement also does that, it’s not as much as Partanna’s concrete. As per Fox, each Partanna block can absorb carbon dioxide 100x faster than a regular cement block. 

Since almost all environments contain CO2 and some water, the absorption continues throughout the life of the concrete block. This makes Partanna’s building material carbon negative and eligible for carbon credits.

Generating Avoidance and Removal Carbon Credits 

At its current stage, the startup’s financial advantage over competitors is largely from carbon credits. The company says that:

“We are entering the market at a very opportune time where we can offer a high volume of credits that meet the criteria for the highest-value pricing.”

Partanna is selling carbon credits that come from the production of its concrete. A single block of its concrete generates 14.3 kg (31.4 lbs) of carbon credits. Around 80% of that from the CO2 it absorbs over its lifetime. 

In a sample calculation, the company said that one 1,250 square-foot home would remove almost 130 metric tons of CO2 and avoid another 54 metric tons.

So, the total avoided and removed CO2 per house is about 184 metric tons. The total carbon credit potential of the house is also the same – 184 carbon credits. Each credit represents a metric ton of avoided/removed CO2. 

So, how does Partanna’s concrete carbon removal compares to a tree CO2 removal?

Unlike a tree, Partanna’s concrete blocks don’t need to be watered. In fact, its brine-based technology doesn’t require fresh water at all. Here’s how its net carbon removal compares to a tree, without accounting for the avoided emissions:

Partanna’s standard CMU (concrete masonry unit) block is 25% stronger than traditional CMU

Verra, the world’s largest carbon crediting program, approved Partanna and its carbon removal to be listed on its VCS registry last year. It is the first verified carbon-absorbing building material to generate tradable carbon credits.

The government of Bahamas had signed a memorandum of understanding (MoU) with Partanna for the company to supply concrete for 1,000 homes over the next 3 years. The startup also attracted interests from the Middle East with Fox signing another MoU with a real estate developer owned by the Saudi Public Investment Fund. 

By turning buildings into carbon sponges, Fox said that Partanna is “delinking pollution from development”.

The $12 million pre-seed funding shows that there’s a significant demand for Partanna’s concrete carbon removal. It caught the startup off guard, Fox says, which prompts the company to plan a large Series A.

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The Death of Diesel Gives Birth to ZEVs

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A new report from the Gladstein, Neandross & Associates (GNA) highlights the growing shift towards zero-emission vehicles (ZEVs) and renewable fuels in the transportation sector. 

The fourth annual State of Sustainable Fleets Market Brief reveals that public policy and funding have shifted sharply towards building the ZEV market and phasing out diesel engine development at an accelerated pace. 

This shift is driven by a combination of regulatory requirements, public incentives, and market demand. Furthermore, advances in technology and increasing concerns about climate change and air pollution further encourage moving away from diesel.

The GNA report concludes that:

“The past 18 months have laid the roadmap for a zero-emission future in many states and produced early signals that the era of the diesel engine, the workhorse of HD [heavy-duty] vehicles, will end sooner than many predicted.”

Increasing Regulatory Pressure for ZEVs

According to the report, some clean fuels and vehicles are now superior to gasoline- and diesel-fueled vehicles for many fleet applications. Also, the use of renewable fuels and advanced tech drivetrains has been growing. 

One major reason is the increasing regulatory pressure to transition away from conventional fuels to cleaner alternatives. California’s zero-emission vehicle or ZEV sales mandates, in particular, have forced market players to embrace the change.

Then the US Environmental Protection Agency set the most stringent standards ever on the transportation sector’s emissions that contribute to air pollution. This adds tens of thousands of dollars – $30,000 – to the cost of new diesel engines while also requiring further ongoing maintenance. 

Meanwhile, public sector funding fell while incentives and subsidies soared to historic highs following the introduction of the Inflation Reduction Act (IRA) last year. 

Public incentive funding for clean fleet technologies and vehicles will average $32 billion each year for the next 4-5 years. The focus of this investment will be on the ZEV market and infrastructure. 

A total of 13 states have passed or are considering some form of California’s 2020 Advanced Clean Trucks (ACT) mandate for manufacturers to start selling ZEVs. 

Notably, 75% of the surveyed fleets that have never used clean drivetrain technologies before plan to up their use in the next 5 years.

Furthermore, the production capacity for renewable diesel (RD) to replace fossil diesel has doubled in 2022. Uptake by private sector fleets surveyed grew about 10% for the same year compared to 2021. 

In particular, almost 30,000 medium-duty battery-electric vehicles (BEVs) have already been ordered. Whereas plans to use more clean drivetrains and fleet technologies (e.g. propane, battery-electric, and fuel-cell electric vehicles) were still over 80%.

Other Key Findings on Clean Transportation 

The report also showed another significant result: supply and demand for renewable diesel grew in states with carbon credit markets. Domestic RD production doubled from 2021 (800 million gallons) to 2022 (1.7 billion gallons). 

There has been a drop in the credit price linked to big volumes of renewable fuels traded in California’s carbon credit market. But estimates say that the industry can still achieve its production capacity goal in 2024 – 5 billion gallons. 

Additionally, renewable natural gas replaced nearly all fossil natural gas in California transportation for the second year in a row. Even more remarkable is the finding that orders for medium-duty and heavy-duty BEVs grew by a whopping 640%. And 92% of the fleets surveyed have plans to increase their use.

The report also reveals that the public hydrogen station network grew by 12% to 54 stations in 2022. It also suggests that hydrogen fuel projects unveiled last year will bring over 900 metric tons a day by 2023. 

Hydrogen fueling network developers also plan to construct stations outside of California across the central mid Atlantic and southwestern U.S., which is a first for public fueling networks. 

ZEVs and Carbon Credits 

California’s Low Carbon Fuel Standard (LCFS) market has been driving the demand for zero emission or clean technology in the transportation sector. The program creates a marketplace for technologies that generate carbon credits based on emission reductions brought by fuel or energy use.

Carbon credits are generated from initiatives that reduce, remove, or avoid carbon emissions. Each carbon credit represents one tonne of carbon reduced by using ZEV and other clean technologies.

The supply of several low carbon fuels such as RD and RNG had increased. This pushed down the price of carbon credits for the past 2 years as seen in the chart. 

The falling price for a carbon credit traded under the LCFS market continued in 2022, dropping 44%. In the same year, credit prices averaged $99.66 per metric ton (MT) and declined to as low as $56.10/MT in late October.

That is a significant drop from the highest peak of $219/MT in February 2020. Type 1 credit transaction – credits sold on the “spot” market –  totaled to over $560 million. Overall transactions surged past $3.7 billion in 2022, marking a 24% increase in credit volume. 

A big part of the transactions happening on the California LCFS market involves Tesla, the largest seller of carbon credits so far. The biggest EV maker had, again, grabbed attention with its 12% increase in Q1 2023 revenue from selling carbon credits.

The automaker recorded $521 million carbon credit sales in the first quarter compared to $467 million in Q4 2022. Tesla has been earning big revenues from carbon credits for the previous years, reporting a record $1.78 billion in 2022 alone.

Overall, the State of Sustainable Fleets report demonstrates that significant progress is being made towards a more sustainable and equitable future in the transportation sector with zero-emission vehicles. The growing momentum towards ZEVs and renewable fuels will bring diesel to an end, driving carbon credits market up. 

The report provides a powerful tool for sparking collaboration and promoting decarbonization in the commercial road transport sector.

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Israel to Fail 2030 Climate Pledge

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Israel is lagging behind its own climate pledges, according to a report published by the Environmental Protection Ministry.

The country is set to reduce its global warming emissions by just 12% by 2030. This is well below the 27% target it pledged to the United Nations Framework Convention on Climate Change. 

The report states that only 19% of energy will be generated by renewable sources by the end of the decade, compared with the official goal of 30%. 

These revelations come at a time when countries around the world are working to reduce their carbon footprints to combat the effects of climate change.

Failing to Meet Climate Pledge

The annual report reviewed progress until 2021 on official emissions reduction targets across the economy and various sectors. The benchmark for reduction levels is the rate in 2015. 

The report predicts gaps between targets and realistic achievements on almost every pledge that the Israeli government has made.

Largest dump site in Israel, Dudaim

The UN expects Israeli emissions from solid waste to drop by at least 47% by the end of the decade, compared with 2015, but these will likely only diminish by 19%, according to the report.

The electricity sector is meant to see a 30% drop in emissions by 2030, compared to 2015. But it is likely to only reach a cut of 21%. Industry is also supposed to meet a 30% reduction, but is likely to reduce its emissions by just 17%. 

Most of the emissions cuts in 2021 came from the electricity sector as a result of using less coal. Emissions from waste dropped by 4% during that year, but increased by 13% in industry and by 2% in transportation.

The report also shows that Israel is far less ambitious than other developed nations in reducing its carbon footprint. It states that Israel only reduced its total emissions throughout 2020 by 2%, compared with 11%-20% in other Western countries. 

A further 3% were reduced in 2021 but this pace is nowhere near enough to hit the 27% target by 2030, the report says.

The reasons for this slow pace are huge delays in reduction plans and lack of budget for implementing them.

What the Israeli Government Should Do 

To meet its targets, Israel needs to pass a Climate Law that obliges the government to meet its goals, sets out the infrastructure for doing so, and provides certainty to the market. The report lists a number of steps that the government should take to speed up and meet its declared targets. These include the following measures:

Converting methane from sewage treatment plants into energy, 
Developing and implementing programs to slash emissions in agriculture, 
Ensuring energy efficiency in general, closing petrochemical industries in the northern city of Haifa by 2030, and 
Moving much faster towards replacing fossil fuels with renewable energy to generate electricity.

Additional steps include closing coal-fired power plants, making solar panels mandatory on all new buildings, adapting the electricity distribution network so that it can cope with more renewable energy, and providing cash incentives to install EV car charging stations and solar panels on sites that are already in use, such as parking lots.

Meeting Targets with Carbon Credits 

Carbon credits could play a role in Israel’s efforts to meet its climate pledge. A carbon credit is a permit that allows a company or country to emit a certain amount of greenhouse gases.

Carbon credits can be traded on carbon markets, allowing companies or countries to offset their emissions by funding emissions reduction projects in other countries. In this way, Israel could offset some of its emissions by investing in emissions reduction projects in other countries.

The use of carbon credits has been controversial recently, with critics arguing that they allow polluters to continue polluting. However, supporters of carbon credits argue that they can provide a source of funding for emissions reduction projects in developing countries that might not otherwise have the resources to undertake such projects.

In conclusion, Israel is falling behind on its climate targets, and urgent action is needed to reduce the country’s emissions.

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Livestock Carbon Credit Marketplace Secures Seed Investment

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Athian, a pioneering livestock carbon credit marketplace, successfully completed its seed funding round with key investors including California Dairies, Inc. (CDI) and DSM Venturing. The funding will drive innovation and environmental solutions for livestock producers.

This Indianapolis-based company offers economic incentives for sustainable farming. Athian’s platform benefits global food system sustainability and reduces climate warming.

DSM Venturing is the corporate venture arm of Royal DSM, a global company in Health, Nutrition & Bioscience. CDI is the largest dairy farmer-owned cooperative in California and second largest in the U.S. CDI’s investment supports the continued improvement of its environmental footprint.

Other participating investors are Elanco Animal Health Incorporated, Tyson Ventures and Newtrient LLC. Commenting on the fundraising, Athian CEO Paul Myer said: 

“This announcement not only expedites our reach into international markets but also accelerates practical environmental solutions that give farmers new revenue streams and helps companies deliver on their sustainability commitments throughout the value chain.”

World’s First Carbon Credit Program for Livestock

Emissions from livestock production have become a hot issue with some countries placing restrictions on livestock farming like New Zealand. The world’s dairy leader sought to levy farmers for their cows’ carbon footprint.

Data shows that animal agriculture accounts for at least 16% of global GHG emissions, contributing to deforestation and biodiversity loss. Methane, nitrous oxide (N2O) and carbon dioxide comprise livestock’s total emissions. The first two are a lot more potent than CO2 in heating up the earth.

Livestock supply chains emit GHGs in many ways. These include methane production during animals’ digestive process, feed production, manure management, and energy consumption. Here are some important facts about livestock emissions.

Athian’s innovative approach supports the entire value chain’s sustainability commitments. Its platform rewards farmers for implementing sustainable practices that can slash the industry’s footprint. 

Example of this practice is improving fertility in dairy cattle which can reduce methane emissions by up to 24%. Another is to cut emissions from enteric fermentation by changing the livestock’s diet such as introducing seaweeds. Athian helps capture and claim carbon credits earned through efforts like these. 

The company monetizes greenhouse gas (GHG) reductions through the sales of carbon credits, creating value for the supply chain. This becomes more crucial with credits accounted as carbon assets under Scope 3 emissions. 

Cloud-based, Industry-wide Platform

Athian’s livestock carbon credit platform is to help the beef and dairy value chains capture carbon and earn the corresponding credits for that. The company aggregates, validates, and certifies carbon reductions by livestock farmers throughout the entire value chain using software. 

Its cloud-based marketplace is an industry-based analytics tool that enables the creation, banking, buying, and selling of certified carbon credits.

The latest investment round advances Athian’s entry into international markets while promoting environmental solutions that give farmers new revenue streams. 

The collaboration focuses on carbon incentives and positive climate change impacts. Scott Horner and Darrin Montiero will join Athian’s Board of Directors. They will serve in an observer capacity, further strengthening the partnership.

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Duke Energy to Invest $145B in Clean Energy Transition

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Duke Energy released its annual climate report outlining its sustainability and net zero goals, performance, and progress, with the plan to invest $145 billion over the next ten years as it takes the lead in the clean energy transition.

In its Impact Report, one of America’s largest energy holding companies claimed to expand its 2050 net zero goal to cover over 95% of its footprint including Scope 2 and relevant Scope 3 emissions, making it one of the first in the sector to do so. 

Duke Energy also said that its $145 billion clean energy investment will generate $250 billion in economic output. It will also support over 20,000 additional jobs created each year while generating more than $5 billion in additional property tax revenue over the next 10 years.

Katherine Neebe, Duke Energy’s chief sustainability and philanthropy officer, noted that:

“We’re pursuing federal funding and leveraging tax credits to lower customer costs for clean energy technologies and other aspects of the energy transition. Our balanced pace of change will enable a future that offers reliable, accessible and affordable energy for all customers and areas we serve.”

Duke Energy Carbon Emissions

Since 2005, electric utilities in the US have cut down the sector’s carbon footprint by about 40%. 

The power sector has a major role in helping other sectors achieve their own net zero goals. And Duke Energy is ahead of the industry average, consistently decarbonizing to meet its climate goals. 

The company boasts its investments as one of the largest clean energy transitions in the industry. 

Duke plans to invest over $145 billion in capital between 2023 and 2032, and about 85% of that will support the clean energy transition and its net zero by 2050 goal.

$75 billion will be to modernize and strengthen the nation’s largest investor-owned electric grid. 

The energy company also seeks to invest another $40 billion in zero-carbon power generation. These include nuclear, solar, wind and battery storage resources, as well as investing to extend the life of their carbon-free nuclear fleet. 

Duke Energy has a diverse, clean generation portfolio. 

In 2022, over 40% of its electricity generation was from carbon-free sources, renewables and nuclear. 42% was from lower-carbon natural gas, which emits about 50% as much CO2 as coal when burned. And about 17% was from higher-carbon coal and oil. 

In sum, owned and purchased renewables are equal to about 11% of Duke Energy’s electricity generation. 

For its operational footprint, the Fortune 150 company was able to achieve a 44% reduction in carbon emissions from electricity generation from 2005 through 2022. It is also well-positioned to exceed its Scope 1 2030 goal of a 50% emission reduction.

Last year, the energy firm expanded its second interim target of an 80% reduction in 2040. Below is the carbon emissions of Duke Energy for the past three years in comparison.

By addressing 95% of its Scope 1, 2, and 3 carbon emissions, Duke Energy is leading in decarbonizing the industry. It shows that the company is serious about slashing its footprint across its entire value chain. That includes emissions from raw materials through to business operations and down to customer end-use. 

To put that ambitious goal in perspective, that involves more than 100 million metric tons of CO2e each year over 30 years until net zero. 

For emissions beyond the company’s direct control (Scope 2 and 3 emissions), a third-party analysis set a goal of a 50% reduction by 2035 as part of its net zero targets.

Duke Energy’s Path to Net Zero 

The energy firm believes that a diverse energy mix is key to reaching climate goals and transitioning to clean energy. It has the biggest planned coal retirement in the country, aiming to retire 16 GW by 2035, pending regulatory approval.

In line with the International Energy Agency (IEA) Net Zero Energy (NZE) scenario, analysis revealed a pathway for Duke to reach a net zero electric portfolio by 2035.

Under IEA’s scenario, electric utilities in developed countries need to continue to reduce emissions below zero. This will be through the use of CCUS – carbon capture, use, and storage – technologies for biogas or biomass-fired electric generation. 

In the case presented in the chart, Duke Energy’s generation portfolio has to more than double in size by 2035, even with the retirement of its conventional fossil-fired assets. Along with that is the installation of over 15,000 MW of ZELFRs (dispatchable zero-carbon resources).

ZELFRs include new nuclear, gas turbines fueled by green hydrogen, CCUS, or long-duration storage. 

Duke Energy and industry partners have applied for DOE funds for a front-end engineering design study to assess an integrated carbon capture and sequestration project at the firm’s facility in Edwardsport Indiana. The project’s demonstration of capturing carbon after combustion can be a vital step in the path to net zero emissions.  

Another lever is expanding renewables. By 2035, Duke expects to have 30,000 megawatts (MW) of regulated renewables, including utility-owned renewables and renewables from purchased power agreements (PPAs).

The company will also decarbonize its natural gas business by focusing on methane detection and reductions. This plus the overall goal to reduce upstream emissions related to the purchased gas as well as downstream emissions due to customers’ use of the gas products sold. 

The company has also been investing in carbon offset credits but it didn’t reveal how much it will purchase as part of its climate goals. It runs a voluntary program that allows customers to buy green “blocks” from Piedmont, Duke’s subsidiary. A block is a combination of environmental attributes from carbon credits and renewable natural gas.

In sum, here’s what Duke Energy’s road to 2050 net zero emissions looks like.

To achieve those goals, policies, technologies, consumer behaviors, and supply chains that don’t exist yet are developed almost immediately. 

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