A quick recap of Breakthrough Energy’s newest Report
I’m a huge believer in setting Objectives and FAST Goals for myself, the places where I work, and even the startups we work with in our Ecliptic Capital portfolio. That’s why I love checking in on the folks over at Breakthrough Energy. I’ve been lucky enough to meet a few of their fellows in my short time as a VC and look forward to working with more and more of them in the future as well as working with their VC arm.
In this quick post, I wanted to recap their latest report on the state of the state in 2023 when it comes to climate. As we all know Climate Change is a systemic problem that requires system thinking at a bunch of different levels, that said this report focuses on three technologies that have the potential to act as “decarbonization fast-forward buttons”: hydrogen, carbon removal, and the electricity grid.
1. The Need for Innovation:
The report emphasizes the critical role of innovation in addressing the challenges posed by climate change. It highlights the limitations of existing strategies, such as asking individuals to do less and relying solely on limited clean electricity technologies. To effectively combat climate change, the report argues for the development of new technologies that can tackle emissions across various sectors.
2. The Three Key Technologies:
The report focuses on three technologies that have the potential to act as “decarbonization fast-forward buttons”: hydrogen, carbon removal, and the electricity grid. Hydrogen, as the most abundant element in the universe, offers a versatile and clean energy source that can replace fossil fuels in various applications. However, the report acknowledges the need for increased demand and market development for hydrogen to realize its full potential.
3. Policy Support:
The report underscores the importance of policy interventions in driving the adoption of green technologies. It cites the example of the United States federal EV tax credit, which played a crucial role in making electric vehicles more affordable and accessible to the mass market. Policy measures that incentivize the deployment of clean technologies can significantly accelerate the transition to a low-carbon economy.
5. Deployment Strategies:
The report acknowledges the challenges associated with deploying new technologies at scale. It emphasizes the need to bridge the gap between technology development and large-scale deployment, often referred to as the “valley of death.” Breakthrough Energy’s deployment program, Catalyst, aims to reduce the risk associated with first-of-a-kind projects and increase their chances of successful implementation. By providing capital and expertise, Catalyst helps advance projects from the development stage to construction, ultimately reducing the technology’s green premium.
6. Global Collaboration and Equity:
The report recognizes the importance of global collaboration in achieving climate goals. It highlights the need to support low- and middle-income nations in adopting green technologies by making them more affordable and accessible. The report also emphasizes the importance of addressing policy hurdles and bureaucratic challenges that hinder the scaling of innovative technologies.
Conclusion:
The State of the Transition 2023 report provides an overview of the clean energy landscape and highlights the need for continued innovation, policy support, and deployment strategies to achieve a sustainable and decarbonized future.
I think this is a must-read resource for policymakers, investors, and innovators seeking to drive the clean energy transition forward.
