Climate Tech Highlights #20

Hello, there!

If you’ve been following the news, you’re likely as concerned as I am about the scale of the fires across the Amazon and other crucial biomes like the Cerrado and Pantanal. The images are devastating, and the smoke is already affecting people in different parts of Brazil. If you’re unaware of what’s happening, take a look here.

The situation is incredibly complex, but this is not the time to give up. On the contrary, we must keep pushing for more ambitious climate goals, effective action, and accurate information.

In this edition, I’m showcasing technologies and measures that bring positive change in terms of emissions and adaptation—hopefully offering you some hope in these challenging times.

Now, let’s dive into last week's climate news.

Around the globe 🌎

• Amazon’s Water Replenishment Projects: Amazon Web Services (AWS) is funding six new water replenishment projects across Brazil, China, Chile, and the U.S., returning an estimated 1.85 billion gallons of water annually to areas stressed by climate change. As data centers—key drivers of artificial intelligence—consume vast amounts of water to cool servers, AWS aims to become “water positive” by 2030. They plan to return more water than their operations use through investments in projects like ecosystem restoration and irrigation technology. With AI’s demand for resources growing, especially electricity and water, companies like AWS, Google, and Microsoft are increasingly being scrutinized for their environmental impact. Check out AWS’s water stewardship playbook for more best practices here.

• Hardware Startups Leading the Charge in Climate Tech: A recent report by Congruent Ventures and Silicon Valley Bank highlights that hardware startups are at the forefront of climate tech innovation. Focusing on sectors like energy, manufacturing, and raw materials, these companies are tackling the big challenges of climate change. With average investments of $374 million per startup, companies like Commonwealth Fusion Systems and TerraPower are poised to make significant dents in emissions. Hardware solutions take time to develop, but their potential to impact real-world climate problems, like reducing reliance on fossil fuels, makes them crucial players in the fight against global warming. Read more

• UK Government Secures Record Renewable Energy Projects: The UK’s latest renewables auction delivered a record-breaking 131 clean energy projects, enough to power 11 million homes. These projects—spanning onshore wind, solar, and tidal energy—will boost the country’s energy independence, ensuring more green jobs and lower energy costs. With significant investments in Europe’s largest wind farms and substantial funding increases from the government, this marks a key milestone in the UK's journey toward clean energy by 2030. Read more

A glance at Brazil 🇧🇷

• Raízen Raises $1 Billion in Green Bonds: Brazilian energy giant Raízen raised $1 billion in green bonds, marking its second successful international issuance this year. The funds will support debt restructuring, second-generation ethanol projects, and carbon emission reduction efforts. With strong investor demand, the company managed to secure lower interest rates, underscoring the appeal of Brazil’s growing green bond market. Read more

• Rock Dust Carbon Credits - A New Frontier in Brazil’s Agriculture: Startups like Germany's InPlanet and the U.S.-based Terradot are betting on Brazil to generate carbon credits through rock dust application in agriculture. These remineralizers not only replace chemical fertilizers but also help sequester carbon in the soil. Brazil’s tropical climate, with abundant sunlight and rain, makes it ideal for accelerated weathering, a process that enhances carbon capture. With the potential to scale rapidly, these startups are pioneering a new category of carbon credits, positioning Brazil as a natural laboratory for sustainable agriculture. Read more

Don't miss out! 👀

• From labs to the ocean: 6 next-gen blue economy startups

  Startups are leveraging data-driven tech to conserve ocean ecosystems and promote the sustainable use of ocean resources. Read more

• The FOAK Climate Tech playbook: How to draw up the right cap table

  Be it a carbon removal facility or a next generation e-fuel plant — climate tech is hugely capital intensive. That means startups building them can’t count on the traditional financial playbook used by software companies time and again. 

  So what should a FOAK cap table look like? Read more

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See you next Tuesday!