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Welcome to Zeroing In by Speed & Scale, where we cut through the noise to deliver a data-driven update on progress toward net zero.

MIDYEAR REALITY CHECK FOR CLIMATE TECH: Over the first half of 2024, climate tech investment dropped to the lowest levels—in both dollars and deals–since 2020. Investors have grown more selective, concentrating their capital on what they perceive to be higher-quality investments.

Speed & Scale’s net zero action plan calls for $50 billion per year of cleantech venture capital, a target surpassed in 2021 and reached in 2022 and 2023. Despite the recent downturn, a number of companies are attracting significant funding for breakthrough projects—an indication that innovation in climate tech continues to draw interest, even in a tighter market. Some startups are securing larger-than-average venture investments in early rounds. Among the areas of sustained VC interest are: advanced geothermal energy, sustainable aviation fuels, and battery technology.

OKRs in the News

🚗 1.0 – Electrify Transportation

• Charged Savings: A new analysis by The Washington Post found that recharging EVs is cheaper than refueling gasoline cars in all 50 states, with savings ranging from $14 to $80 per fill-up (Energy Innovation and Washington Post).

• Scooting To The Top: Underscoring the crucial role played by two-wheel vehicles in India, Ola Electric, the country’s leading electric scooter maker, has gone public. India’s two-wheeler market is projected to grow to 13 million units in annual sales by 2028 (The Economist).

• EVs Zoom Ahead: More than one of four new cars sold in California in Q2 2024 were EVs–the state’s second-highest quarterly market share ever. A total of 118,181 EVs were purchased, accounting for 25.7 percent of all new car sales. To meet demand accelerate EV adoption, California has invested $1.9 billion in its charging network (CA.gov).

💡 2.0 – Decarbonize the Grid

• A Shift In Power Dynamics: Over the last two decades, the sources of electricity generation have shifted dramatically across the U.S., with many areas transitioning from coal to natural gas or to wind and solar. In Nevada, for one example, natural gas became the dominant power source for the state in 2005. But in recent years, solar energy has surged and now accounts for 26 percent of the state’s power. This evolution illustrates the diverse energy strategies states employ to meet their power needs (New York Times).

• China Coal On The Rise: Despite China’s massive deployment of renewables, it consumed over half of the world’s coal in 2023 and accounted for 95 percent of coal-fired power plant construction globally. Due to growing global energy demand, both fossil fuel and renewable energy consumption continue to rise. Together, China and India consumed two thirds of the world’s coal last year, a slight decrease from the 35 percent in 2000 (Bloomberg).

• OPEC Downsizes Oil Projection: Citing a weaker-than-expected first half of the year and softening conditions in China, OPEC has reduced its 2024 forecast for global demand growth for oil by 135,000 barrels per day. This adjustment marks the first significant change to an oil forecast that remains considerably higher than projections for the rest of the petroleum industry (Bloomberg)

🐄 3.0 – Fix Food

• Food Fight: Upside Foods—a producer of cultivated meat—is suing the state of Florida. The company claims that the state’s ban on lab-grown meat is unconstitutional and designed to protect the cattle industry rather than address food safety concerns (The Verge).

• Price Hikes Brewing For Coffee: Climate change is driving up coffee prices as prolonged droughts and extreme weather reduce crop yields. Despite efforts by Starbucks and other companies to stabilize costs, experts expect prices to remain higher for longer (CNN).

• New Way To Compost: Solar digesters use heat and microbes to decompose organic material while reducing methane emissions from landfills. The Washington Post highlighted how the new method can simplify waste management (The Washington Post).

🌳 4.0 – Protect Nature

• Canada’s Carbon Crisis: A new study found that Canada’s record-smashing 2023 wildfire season released 647 million metric tons of carbon—comparable to India’s annual fossil fuel emissions—and burned 4 percent of the country’s forests. This development raises major concerns over carbon capture efforts through reforestation. If forests planted to offset emissions are destroyed by wildfires, they’ll become part of the global warming problem rather than the solution (Nature).

• Too Hot To Hold: By 2050, most of the world’s cities, including former Olympic hosts Beijing and Atlanta, will be too hot and humid for a safe Summer Games. Future host cities may need to be in cooler climates or shift to cooler times of the year (CNN).

• Climate Change Dominoes: Human-induced climate change is driving various Earth systems—including coral reefs, permafrost, and polar ice sheets—toward potentially irreversible tipping points. For example, the thawing of permafrost is releasing huge amounts of carbon dioxide and methane, creating a vicious cycle that accelerates global warming and could have unpredictable, far-reaching consequences (New York Times).

• Deep-Sea Tug & Pull: China is aggressively pursuing deep-sea mining to secure critical minerals that are essential for a range of clean energy technologies, from EV batteries to wind turbines and solar panels. While these minerals are urgently needed to meet rising energy demand without adding to greenhouse gas emissions, the Chinese initiative raises geopolitical concerns and could jeopardize environmental progress (The Economist).

• Reef Grief: As ocean temperatures reach their highest levels in 400 years, the Great Barrier Reef is facing imminent destruction. Current warming trends have triggered widespread coral bleaching and threaten the reef’s survival (New York Times).

• Planet On Edge: Climate impact scholar Johan Rockström delivered a new scientific assessment of the state of the planet, noting that Earth has reached its warmest temperature in 100,000 years. Rockström warned that the planet’s current trajectory could breach 2 degrees over preindustrial temperatures within 20 years. Repercussions could include an 18 percent loss of global GDP by 2050, equivalent to $38 trillion per year (TED).

🧱 5.0 – Clean Up Industry

• Steel-ing Carbon’s Thunder: In an excerpt from his new book, Rob Jackson, chair of the Global Carbon Project, explores the challenges of decarbonizing the steel industry, one of the largest carbon emitters. He highlights SSAB’s steel plant in Luleå, Sweden, where the company is pioneering fossil-free steel production by using green hydrogen instead of coal—a breakthrough achieved through a consortium known as HYBRIT (Hydrogen Breakthrough Ironmaking Technology) (Fast Company).

• Lego Goes Green, Brick By Brick: Lego aims to reduce its reliance on fossil fuels by transitioning to renewable and recycled plastics for its popular toy bricks by 2032. As part of its commitment to drive sustainable production, the company is investing in certified renewable resin, which is up to 70 percent more expensive than current materials (CNN).

• Proving Cleaner Industries: The bipartisan Problem Solvers Caucus endorsed the PROVE IT Act, which mandates a study to compare emissions from U.S. goods with those from other countries. The goal is to promote cleaner industrial practices and advance U.S. leadership in responsible energy production (Problem Solvers Caucus).

🧹 6.0 – Remove Carbon

• Limited Removal, Big Challenges: Oxford researchers have proposed a “carbon removal budget” to address the challenge of allocating limited CO2 removal resources. Their idea is to prioritize cutting emissions while reserving removals for harder-to-decarbonize industries (Bloomberg).

• EU’s Carbon Removal Push: RepAir Carbon and C-Questra have announced the EU’s first onshore direct air capture and storage project in France, aiming to remove 100,000 tons of CO2 annually by 2030. The project promises significant energy savings and cost reductions to support Europe’s climate goals (Euronews).

• Support Needed For Scale: Microsoft’s substantial investments in carbon removal, alongside those from other big tech companies, have been pivotal in advancing the industry. While efforts by these tech titans have been essential for spurring initial demand, more buyers are needed to scale effectively and reduce costs (The Wall Street Journal).

OKR Highlight

Good news coming out of California! Beyond continuing to cut emissions at their source, the Golden State aims to meet its ambitious climate goals by using new technology to remove significant amounts of CO2 from the atmosphere. A proposed bill, SB 308, would establish targets to remove 75 million tons of CO2 annually by 2045 and foster a robust carbon removal industry. Carbon removal is essential to zeroing out emissions by 2050. Effective regulation and a commitment to scaling these technologies will help the world meet that goal.

🏛️ 7.0 – Win Politics and Policy

• Emissions Pathways Update: The REPEAT Project has published its 2024 Annual U.S. Emissions Pathways Update, which estimates that federal actions since 2021 will reduce U.S. emissions by up to 600 million tons annually by 2030. The 2024 update reflects a notable increase in energy demand, alongside higher project finance and real capital costs for several technologies, due to recent inflation (REPEAT Project).

• Bipartisan Backing For Green Jobs: A new electric vehicle gigafactory in Georgia, backed by Hyundai and supported by the Inflation Reduction Act (IRA), is nearing completion. The plant expects to create 8,500 jobs, highlighting the impact of IRA projects around the country (Bloomberg).

• Americans Cash In On Tax Credits: Surpassing expectations, Americans claimed over $8 billion in climate tax credits in 2023 through the IRA in 2023. The most utilized credits included solar panel installations and energy-efficient home improvements like heat pumps and insulation. They benefited millions of households, particularly in the Southwest, Northeast, and Midwest (New York Times).

🏃 8.0 – Turn Movements into Action

• Eyes In The Sky: The Tanager-1 satellite, launched by SpaceX, marks a new chapter in methane monitoring. Developed by Carbon Mapper, it will pinpoint methane and CO2 emissions from individual facilities and aims to track global “super emitters” (Bloomberg).

• Gen Z  Voters Back Green Goals: A poll of first-time Gen Z voters in the U.S. revealed strong support for climate initiatives in carbon capture and renewable energy but opposition to phasing out gas-powered vehicles and initiatives promoting vegan diets. Two-thirds of respondents favored achieving net-zero emissions by 2050, and a majority supported bans on Arctic drilling. Four out of five voters backed next-generation nuclear energy, which promises advancements in safety, efficiency, and cost (The Wall Street Journal).

• Big Tech Greenwashing: Tech companies are debating the best approach to address their scope 2 emissions from electricity use. While the ideal outcome would be a full transition to renewable energy, some companies are instead using RECs, or renewable energy credits. Academics assert that RECs fail to drive any reduction in emissions. To address this issue, Google proposes that certificate use should be limited to the same grid that a company uses to pull its energy (Financial Times).

⚡ 9.0 – Innovate!

• Cool Innovation: Nvidia’s next-gen Blackwell chips will use advanced liquid cooling to manage the heat generated by power-hungry AI applications. Traditional cooling methods, like fans and air conditioning, can account for up to 40 percent of power consumption in older facilities. Liquid cooling and other advanced technologies could reduce this consumption to 10 percent. Given that data centers are projected to consume eight percent of total U.S. power by 2030, energy efficiency is of critical importance (The Wall Street Journal).

• Hydrogen Hype Or Hope?: Despite global excitement over hydrogen as a carbon-free fuel, most of the 1,600 planned hydrogen production plants lack committed buyers, signaling the importance of government support (Bloomberg).

• Hot Superconductors, Cool Breakthroughs: For a century, scientists have been striving to create superconductors that can operate at higher temperatures. A breakthrough discovery showing electron pairing at unexpectedly high temperatures could be the key to realizing this dream. Such advancements would pave the way for a more sustainable future, with superconductors enhancing renewable energy grids as well as making transportation and computing far more energy-efficient (SLAC).

• Lithium Revolution – Cheaper, Greener, Faster: Researchers have developed a new lithium extraction technology that is 60 percent cheaper and far more sustainable than many current methods. This innovative process eliminates the need for costly and maintenance-intensive, large-scale solar evaporation ponds. The process also uses significantly less water, electricity, and chemicals, potentially revolutionizing the lithium supply chain and supporting the growing demand for electric vehicles and renewable energy storage (Stanford).

💰 10.0 – Invest!

• Band-Aid For A Burning Planet: Efforts to cut greenhouse gas emissions and stop global warming have fallen short, prompting a shift toward adaptation. Government funds, bolstered by the 2021 infrastructure law and the 2022 Inflation Reduction Act, are being directed toward projects like flood barriers, coastal restoration, and infrastructure upgrades to withstand extreme weather. As the impacts of climate change become increasingly frequent and severe, greater investment is needed to strengthen community resilience (The Wall Street Journal).

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