We’re Ten Years Behind on the Energy Transition

The outcomes of COP29, held in Baku, Azerbaijan, reveal the mixed state of global efforts to combat climate change. The conference concluded with a commitment to provide $300 billion annually to developing countries for decarbonization and climate adaptation—marking a significant rise from the previous $100 billion. However, critics argue this funding falls short of what is essential, calling it a “travesty of justice.”

As nations prepare to submit updated plans for greenhouse gas emission reductions in the coming year, concerns persist regarding air pollution, particularly methane, which is a potent greenhouse gas. While anticipated global investments in cleantech are projected to reach $2 trillion, outpacing fossil fuels, uncertainties following a recent U.S. election threaten the future of such investments. Important policies like the 2022 Inflation Reduction Act, which allocates $500 billion for clean energy initiatives, could be weakened, risking disruptions to supply chains and increasing drilling for fossil fuels, potentially undermining prior climate advancements.

Experts have varying perspectives on the path forward. Stéphane Germain, CEO of GHGSat, emphasizes the critical need to target methane emissions due to their acute climate impact. During COP29, he highlighted the launch of a CO2-monitoring satellite and noted the Global Methane Pledge, which includes 159 countries committed to mitigating emissions primarily from oil, gas, waste, and coal sectors. Germain expresses optimism that addressing methane now can lead to substantial progress in managing CO2 levels later, given the collective momentum from NGOs, corporations, and innovators.

Conversely, Sarah Goodman, CEO of the B.C. Centre for Innovation and Clean Energy, points out that the world lags a decade behind in transitioning to renewable energy. She identifies Canada’s strength in innovation but notes a need for better commercialization of clean technologies. The challenges posed by global fragmentation and policy inconsistency threaten climate targets, compounded by supply chain uncertainties and the risk aversion within the corporate sector. Goodman insists that recognizing climate change as a major economic opportunity is vital, highlighting the need for equitable funding distribution, particularly for women-led ventures in cleantech, which currently receive a mere fraction of capital investments.

Rachel Field, a senior associate at Engine Ventures, shares a sense of optimism regarding innovations aimed at decarbonizing hard-to-abate industries like cement. The potential for advancements at the intersection of biology and climate also excites her, particularly regarding food security in light of a growing global population. Field acknowledges the challenges of time-to-market for new solutions but remains hopeful about the influx of talent and diverse ideas emerging to tackle climate challenges. Partnerships between academia and industry are seen as crucial for fostering this entrepreneurial spirit.

Ultimately, while some progress is being made in deploying innovative solutions to combat climate change, significant obstacles remain. Increased investment in cleantech, decisive action on methane emissions, and a united global approach are essential to steer the planet toward a more sustainable future. The sentiment among experts emphasizes both the urgency of innovation and the importance of treating climate challenges as economic opportunities rather than solely crises.