Voices of Climate Action
Voices of Climate Action
A look ahead at how technology can tackle climate change
By Hoi Ying So
This is an exciting time for climate tech. After the conclusion of COP26, the question in many people’s minds is not whether we need to leverage technology solutions to help fight climate change, but rather which ones look the most promising and how we can accelerate their adoption to help cut emissions.
Investors and policymakers alike are realizing the immense potential of new technologies for climate adaptation and mitigation, and innovative solutions and business models are being scaled across sectors, from transport and agriculture to energy and manufacturing.
Innovative e-logistics platforms like Kobo360 and mobility apps like Bolt, which has recently announced a new partnership to support the adoption of electric vehicles, are helping reduce emissions linked to transportation. In food and agriculture, we are looking at a range of innovations that have tremendous potential to reduce greenhouse gas emissions by optimizing farming and reducing food waste. For instance, IFC’s client company Apeel has developed a plant-based coating that can extend the shelf life of fruits and vegetables, cutting food waste as well as the need for refrigeration and plastic packaging. Another promising example is PatternAg. To improve yields and reduce the impact on the environment, the company analyzes the soil’s DNA to help farmers enhance bio-fertility, prevent pests and diseases, and apply fertilizers more precisely.
We are also seeing some really interesting opportunities in the satellite and Earth observation space, where new analytics and precise forecasts made possible by advancements in computing power are helping businesses, governments, and communities around the world adapt to climate and weather risks. IFC’s portfolio company Planet, for instance, deploys satellites to collect valuable analytics that can inform strategic decisions about crops and how to manage forests, water resources, coastal zones, and farmlands. The company can also track pollution and enable fast and targeted responses to natural disasters.
Finally, breakthrough developments in decarbonization technologies are helping advance clean, reliable energy solutions as well as zero-emissions manufacturing. Take steel production for example. Today, it accounts for about 8 percent of global carbon emissions and it is one of the hardest sectors to decarbonize. Boston Metal, a portfolio company of one of our strategic VC fund managers, The Engine, is changing the game by commercializing a revolutionary emissions-free method for steel production.
The challenge, however, is that this kind of breakthrough technologies – also known as deep tech – involve exceptionally complex research and development processes, in addition to the right revenue model to scale – unlike startups in digital or software-based sectors, the path to scale for deep tech companies takes longer and requires patient risk capital. This is where leading impact investing institutions like IFC play a key role by bringing long-term capital, the market expertise, and the partnerships between private and public institutions that are needed to develop these new technologies and accelerate their adoption across emerging markets, where their impact can be even larger.
With climate commitments and action plans coming out of COP26, I think there is now a broad consensus that effectively addressing climate change will require a complete transition to a low carbon economy. While the challenge ahead is significant, investing in clean technology brings enormous opportunities to boost sustainable growth, jumpstart innovation, and make progress in the most important fight we have ever faced – the fight for the future of our planet.
Hoi Ying So, a Hong Kong native who has worked at IFC for nearly a decade, is the global portfolio manager for disruptive technologies and venture capital.
Published in December 2021