6 Things I've Seen / Heard / Learned During Climate Week 2024 in New York. šļø
The NYC Climate Week 2024 was transformative. Here are a few updates and learnings I thought our fellow investors and members of the Climate Tech Coalition should hear about.
Hello from New York.
Scientists reported that the planet surpassed 1.5 degrees C of warming for 12 consecutive months. As extreme weather events reach unprecedented levels in Southeast Asia (Typhoon Yagi in Vietnam, 3 weeks ago) and the United States (Hurricane Helene in North Carolina, last week), 80,000 leaders gathered in New York, united in their mission to channel more capital into accelerating climate action.
From the recent changing tides of venture capital to the next generation of climate tech trends, here are six key takeaways that will shape the future of climate action.
Hint: It got much bigger than Atlas itself.
1. Walking the Talk āA Man is the Product of His Imagination.
Iām not American. Iām proudly French, spent most of my adult life in Asia, and in fact, I have cumulatively spent less than a year in New York.
Last year, my best friend told me ā You should spend more time in the US, thatās where all the innovation is happening in Climateāā¦ 1 month later I was there, landing in New York.
One week later I was organizing our first Climate Investors Summit 2023 at NYC Climate Week. Later the same month we did manage to put together the event with 100 attendees.
Well, this friend was right, the climate tech interest, and the funding ā for all innovations reallyā are mostly happening here in the US.
This year at NYC Climate Week 2024 was SOLD OUT, with over 200 investors, 50+ family offices, and $22b of committed capital for climate in the room from VCs, and conglomerates, Atlas Capital made history.
What started as a dreamāto host one of the largest climate investor events in New York Cityāhas now become a reality.
But this isnāt the finish line; itās just the beginning of something biggerā¦ (see #6).
French author, Andre Malraux once said, āMan is the Product of His Imagination.ā Well, that is if you are creative enough and stubborn enough. And thank god we have been for now.
Imagination. More than climate gadgets or money, maybe what the world needs first is a common shared, positive vision of what could our future look like on our planet. A vision where our cities would be preserved from the extreme weather apocalypse we start seeing now. Who is leading this vision? If youāve found out, email me!
2. Storm āThe Ukraine War did Bankrupt āESGā.
The Ukraine war has dramatically shifted global ESG investment priorities. Climate venture capital dropped by 27% in 2024, and several high-profile companies like Monolith (Hydrogen) and Northvolt (EV Batteries) experienced sharp down roundsā40% and 35%, respectively.
This isnāt just a dip; it's a reevaluation. A refocus on what really does matter. High interest rates, geopolitical instability, and the energy security crisis have altered the dynamics of climate funding.
Northvolt, once heralded as Europeās green energy leader, is now facing significant financial challenges. The company reported a $1 billion loss in 2023, and a ā¬2 billion order from BMW was canceled due to quality issues. With more than $13 billion in debt and equity commitments, Northvolt's troubles are emblematic of broader difficulties in the battery and EV sectorsā(Energy Connects)ā.
But while āESGā is being questioned as a priority, the āEā, environment ā Climate has never changed as much in the past 2 years. Hence I donāt believe this is the end of āClimate Techā yet.
As James Tu shared at our Atlas conference last week, this was a much-needed market correction marking the end of the over-investments in EVs and unlocking a path towards much-needed vital infrastructures (Solar PVs, Wind, Geothermal, Nuclear, etc) that have the potential to avoid hundreds of millions of Co2.
Bainās Energy and Natural Resources 2024 report highlights how investment in the energy transition is stabilizing despite geopolitical and market challengesā(Bain).
3. HopeāMillennials Are on the March
While capital may be tightening, millennials are stepping up and taking the reins. At Climate Week, 80,000 attendees participated, and 60% of them were millennials. These are not just passive participantsāthey are the leaders of tomorrow, driving corporate management and policy. With figures like Sam Altman and Brett Adcock pioneering AI and robotics, millennials are poised to reshape industries with sustainable solutions.
PwCās State of Climate Tech report shows how millennial-driven investments in built-world technologies are accelerating despite economic slowdownsā(PwC).
By 2030, millennials are expected to control over $68 trillion in wealth transfer, positioning them to drive the climate agenda forward. This generationās commitment to climate action is not only shaping policy but also the future of business.
From AI-driven climate adaptation to carbon capture technologies, millennials are at the forefront of a new industrial revolution, which will define the future of climate tech investing.
In fact, with the recent interest rate cuts, Iām frankly hopeful that the capital situation will evolve favorably in next coming months with a new strong market cycle.
While companies in the climate tech space have been suffering from a capital drought, as of 2024, global venture capital firms are sitting on approximately $580 billion in dry powderāunallocated capital that is ready to be deployed but remains uninvested. We are going to see this capital flood the market next 24 months. the question is only whereā¦
4. C3PO ā 2024 was your last summer without robots.
Remember that summer 2007, the last one before the iPhone?
The future of AI/robotics is no longer a far-off visionāitās happening now.
Robots + Climate change? Well while humans canāt work amidst hurricanes, these robots might and are rapidly finding their way into industries like logistics, manufacturing, and disaster response. But not only:
Do you have a PC? Personal Robots are here: Technologies that once seemed like science fiction, such as Unitreeās $16K four-legged robots and Teslaās $20K humanoid bots, are already being commercialized.
AI-Driven Flood Prediction: AI systems from Cloud to Street use real-time data to predict floods and help cities prepare faster.
Drones for Reforestation: Flash Forest deploys drones to plant thousands of trees daily in areas impacted by wildfires.
Robotic Disaster Response: Boston Dynamics uses robots like Spot to assess damage and deliver aid in disaster zones.
AI Water Management: Taranis uses AI to optimize water use for farmers, helping during droughts.
Coral Reef Restoration: CoralVita employs underwater robots to plant coral and restore damaged reefs.
Global spending on robotics is expected to exceed $275 billion by 2025, up from $135 billion in 2023 ā(McKinsey & Company). Robotics and AI arenāt just exciting; they are revolutionizing how we adapt to climate challenges. Whether itās automated systems for building infrastructure or drones that assist in disaster relief, robotics is increasingly integral to climate adaptation.
Companies at the intersection of climate tech and robotics are gaining momentum. Their technologies are not only improving efficiency but also enabling us to rethink whatās possible in adapting to a rapidly changing world. As industries scale up, these innovations will only become more widespread.
I have done some research on the topic for a while now and Iām very excited to share these insights on the stage in Toronto, Canada in 2 days with Jeremy Rifkin, one of my idols and author of The Third Industrial Revolution and The Zero Marginal Cost Society. Stay tuned for the videos and insights coming!
5. One Year of Droughts, One Year of Massive Floods ā Next 500 Years
āOne Year of Droughts, One Year of Massive Floods [ā¦] adaptation is the only solution,ā are the words of Senator Walz during the Vice Presidential debate yesterday.
PwCās latest Net Zero Economy Index found that the global rate of decarbonization has plummeted to just 0.5% per year over the past 12 monthsāwell below the 15.2% rate required to limit warming to 1.5Ā°C. The irony is undeniable: during Climate Week, while experts gathered to discuss climate solutions, one of the deadliest floods in recent US history was unfolding, with hurricanes and flooding leaving a trail of devastation. This stark reality reminds us that the narrative is shifting rapidly from future risk mitigation to an urgent focus on adaptation.
Meanwhile, reports from PwC have highlighted the increasing importance of adaptation investments as climate-induced disasters grow in both frequency and severityā(PwC).
There is a new turn for Climate Tech.
I believe itās called āClimate Adaptationā.
The past year has been marked by severe droughts, followed by catastrophic floodsāclear signs of a volatile new climate reality. What we once feared as distant possibilities are now annual events. This underscores the need to shift our global conversation: itās no longer enough to aim for net-zero emissions; we need robust infrastructure and innovative systems that help us survive the extreme conditions that are already here.
Companies like Gradient, which develops modular heat pumps and air conditioning systems, are pivotal in this transition. By offering adaptable, energy-efficient solutions for both heatwaves and harsh winter cold, Gradient is helping cities and homes withstand the growing impacts of climate extremes. Similarly, Avalo AI is pioneering AI-based solutions for agriculture, ensuring that crops can adapt to changing climates and unpredictable weather patterns, bolstering food security in the face of ongoing droughts and floods.
The work of climate innovators and investors is more important than ever as the world shifts its focus from mitigation to adaptation. Technologies like those from Gradient and Avalo AI are critical for building resilience in the face of floods, droughts, and the unpredictable forces of nature.
We are now living the consequences of inaction, and adaptation is our only path forward.
6. Adaptationā The One Job of Our Generation
If thereās one overarching lesson from this yearās Climate Week, itās that adaptation is our generationās greatest task.
Itās not just about slowing climate changeāitās about surviving it.
PwCās adaptation and resilience report shows the growing investment in climate-proof infrastructureā(PwC).
The adaptation economy is projected to reach $1 trillion by 2030, driven by advances in energy efficiency, resilient infrastructure, and AI-driven logistics solutions.
This is not charityāitās essential for survival in a world where climate events are becoming increasingly severe. By investing in adaptation, we are ensuring that cities and businesses are prepared for the inevitable challenges ahead.
Imagine cities that adapt to climate change, with resilient infrastructure designed to handle floods, heatwaves, and rising sea levels. This is the vision that I illustrated in my book 3 years ago, The Adaptive Economy.
This year, more than 250 innovators replied to the calling of our Adaptive Cities Innovator Awards, and the finalists came all the way to New York to meet 200+ investors at our Atlas Climate Tech Coalitionās Investors Summit.
$22b of committed capital for climate was mobilized in the room with us last week.
We walked the talk.
Whatās next?
We are cooking something big for The Adaptive Economy.
Stay tuned to next week's newsletter.
Breakthroughs happen in the trenches. Jump in.
NYC Climate Week 2024 has revealed both the cracks in our old systems and the opportunities in the new. A future for climate tech, AI/robotics, and adaptation is being shaped now and its leaders are in this chatroom. The work we do today will determine our ability to thrive in a world defined by change. The key to our survival lies in innovation, investment, and, most importantly, our ability to imagine a better future, togetherāLetās make it real.
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ā Djoann Fal