Innovation in clean tech is key to avert climate disaster

These innovations in what is being called “deep” or “hard” tech—products and processes based on science and engineering advances—could be critical in addressing climate change. While the past few years have seen remarkable progress in deploying relatively mature renewables such as solar and wind power, as well as strong growth in electric-vehicle sales, large gaps in the cleantech portfolio remain. In its most recent report this fall, the International Energy Agency estimates that around 35% of the emissions cuts needed to meet 2050 climate goals will have to come from technologies not yet available.

Key industrial sectors of the economy, in particular, have largely been untouched. Nearly a third of carbon emissions come from industrial processes used to make steel, cement, chemicals, and other commodities; concrete alone accounts for more than 7% of global emissions, while steel production is responsible for another 7% to 9%. Cleaning up these industries will take an almost unlimited supply of cheap, steady, and easily accessible carbon-free energy.

Progress will almost certainly require new science-based innovations. And that’s where venture-backed startups play an essential role. Over the last few decades, large industrial corporations in sectors such as energy, chemicals, and materials have all but abandoned research into new technologies. The days when industrial giants like DuPont created critical new technologies and spun them off into profitable operations are long gone. And while governments and universities fund research, venture-backed firms have emerged as an increasingly key outlet for transforming promising lab discoveries into sustainable businesses.