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Update: 🇺🇸 The US elections and climate tech investing

Donald Trump has been elected the 47th president of the United States, and Republicans have gained the majority in the Senate. While there are many uncertainties about the consequences of these results, we expect the impact to be significant on numerous critical issues, including the energy transition.

Many people are working through what consequences might be for climate tech and climate investing. A lot still depends on the composition of the House of Representatives.

While the mood at Carbon Equity was not the brightest yesterday, one person in our team summarized our resolve succinctly:

“Today really highlights that the fight against climate change can’t depend on activism and policymaking alone. We need climate tech and other market-based solutions with clear economic benefit to ensure political shifts can’t come with this high risk for progress.”

We at Carbon Equity are closely monitoring new analyses coming out and what all of this means for climate tech and climate investing. We will share our synthesis of the best insights with you as soon as we can.

In the meantime, I would like to share with you some of the inspiring companies scaling up fast and shaking up industries that have long been stuck in their old, carbon-heavy ways. They embody progress and provide some much-needed hope. 😉

🦄 9 climate unicorns leading the transition to a low-carbon future

It’s crystal clear to me that climate tech is the place to be for both impact and returns. Sure, 2024 saw a funding drop compared to the peak years. Climate-tech VC and growth equity funding totaled $11.9 billion in 1H24, a 20% drop versus 1H23, according to CTVC.

However, in our recent whitepaper, we argued that there are powerful economic drivers pushing climate tech into the mainstream far beyond its niche roots. From declining cost curves to the heightened focus on energy security driven by geopolitical competition—and individuals simply caring more about sustainability in their work and daily lives—climate tech’s growth is driven by forces that run deeper than economic cycles. This isn’t a fleeting trend, climate tech will continue to gain momentum.

Our mission at Carbon Equity remains clear: fund the game-changers. Help them become the large companies with the power to really slash emissions and transform our industries.

Here’s a sneak peek of the climate tech unicorns we’re proud to support:

Note: Yes, “unicorn” status doesn’t guarantee success, but it’s still a strong signal of a company scaling toward market leadership and its impact potential.

🔋 Form Energy: Its iron-air batteries are a game-changer for renewable energy storage, delivering affordable, long-duration power to keep the lights on even when the wind stops or the sun sets.

🏗️ Stegra (formerly H2 Green Steel): Reinventing steel production with green hydrogen, they’re slashing emissions up to 95%—making the world’s most carbon-heavy material nearly climate-neutral.

⚡️ Electric Hydrogen: Tackling heavy industry’s carbon problem, its high-efficiency electrolyzers simplify green hydrogen production and scale it up fast.

✈️ Twelve: This team is turning CO2 into jet fuel and everyday materials, reducing emissions by 90% compared to traditional fuels. Aviation and petrochemicals, meet your match.

♻️ Redwood Materials: Founded by a Tesla co-founder, Redwood is building a circular supply chain for EV batteries, reclaiming 95% of valuable materials like lithium and nickel.

🔧 Group 14 Technologies: Boosting battery performance with next-gen silicon-based materials that increase energy density by 50%. EVs will go farther and charge faster, driving the electrification future.

🪨 Kobold Metals: Using AI to discover low-carbon mineral sources essential for clean energy, they’re revolutionizing resource discovery. With over 60 global projects, they’re securing the minerals needed for a low-carbon world.

🏡 1KOMMA5°: The one-stop shop for clean energy homes, simplifying solar, EV charging, and heat pumps while optimizing energy use for lower bills and a lower carbon footprint.

🐙 Octopus Energy: This clean energy powerhouse is making renewable energy affordable and accessible through advanced tech and data. Operating in 18 countries, they’re empowering millions to switch to greener energy solutions and even launching initiatives to help those facing energy poverty.

For more in-depth descriptions and the latest news on each company, check out my latest blog.

The big takeaway? 💡
These companies are setting new standards in their industry—from renewable energy storage to low-carbon steel—proving that even in challenging times, we continue to see rapid growth and transformative change.

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💡 Carbon Equity updates

WIRED has named Carbon Equity among the top 10 hottest startups in Amsterdam, and we’ve got that album cover picture to prove it!  🎸

Carbon Equity was also awarded first place in the Climate Fintech & Reporting category at the Benelux Climate Tech100. 🥇

We are very excited to announce our most recent co-investment: The $51m Series B of LuxWall, Inc. 🚀 LuxWall tackles one of the largest culprits for energy loss: our windows! Their vacuum-insulated glass technology helps keep heated air inside during the winter and solar heat outside during the summer, making buildings more energy-efficient and reducing carbon emissions.

You catch me live on the talk show “Nieuwe Industrie – Een Betere Wereld Begint Met Een Investering” here on November 12th.

Upcoming Webinar: Where Investing Matters Most: Insights from Top Climate Fund Managers. Join to fund managers from our Portfolio Fund III, Cameron McLain (Giant Ventures) and Rachel Slaybaugh (DCVC), as they share their insights on:

• The current Series B/C funding challenge (a.k.a the Valley of Death)
• Whether now still is a good time to invest (impact/returns)
• Their outlook for Q4 2024 and 2025, and much more

Sign up here.

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💡 News from within our funds

👕 Syre announced the launch of their new circular textiles plant in North Carolina, set to advance sustainable textile manufacturing in the region.

🚍 Distribusion secured an $80M follow-on round to further enhance global access to ground transportation, expanding their reach in the transport technology sector.

🔋 Giant Ventures announced a new investment in Flower Technologies, focusing on energy transition and renewable energy solutions.

☀️ Octopus Energy launched an initiative aimed at alleviating fuel poverty, leveraging their solar-sharing model to make energy more accessible and affordable.

❄️ Clean Energy Ventures announced a $10.5M follow-on investment in Transaera, focused on scaling energy-efficient AC technology, with additional funding from EIP Frontier.

⚡️ Ampd Energy closed a $27.3M Series B round with ongoing support from 2150, aiming to accelerate clean battery energy storage solutions globally.

You can explore more companies within our funds here.

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📚 Interesting reads

Global emissions set to peak in 2024 thanks to EVs, clean energy

New research from the independent research firm DNV shows global emissions are now expected to peak in 2024 and then start to decline. The rapid adoption of clean technologies like electric vehicles, solar power, and advanced battery storage has put the world on track to cut greenhouse gas emissions in half by 2050. Although it’s a milestone, that’s obviously still far from reaching our critical net zero goals.

Why the time for grid tech innovation is now

There's a big opportunity to build the next big business in grid technology. The need is increasing by the day and with an abundance of public investing and over 30 billion VC funding only in 2020, now is the time to build! However, energy resilience challenges are complex and multifaceted. Meaning there are several topics funds should take into account: chasing the right capital (debt vs. equity), varying customers and sales cycles, and the importance of partnerships just to name a few.

Unlocking Arkansas’ hidden treasure: USGS uses machine learning to show large lithium supply

The USGS has discovered a lithium treasure trove in Arkansas’s Smackover Formation: an estimated 5 to 19 million tons (possibly meeting global 2030 EV battery needs multiple times over). This discovery could position the US as a global leader in lithium production and completely revolutionize the EV supply chain.

The end of the beginning for climate tech

It’s been less than five years since the phrase “climate tech” first showed up, and the sector is reaching its first major inflection point. This article is the first of a series that maps out where to focus capital and how to adapt in a maturing market. For example, emphasizing scaling proven technologies and investing in transformative rather than incremental innovations.

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