Innovation has always been a part of America’s story, and it’s crucial for tackling climate change. The International Energy Agency estimates that by 2050, we’ll need 35% to 46% of emissions reductions to come from new technologies. Unfortunately, there’s a disconnect between what we need and what our institutions currently provide.
Environmentalism must shift from simply protecting to also innovating. While the past 50 years of environmental efforts have fought against pollution and deforestation, we now need new organizations focused on building solutions. Today’s environmental leaders have a choice: they can either push innovation forward or hinder it.
Driving Innovation for Environmental Change
Fifteen years ago, I founded Elemental Impact. We aim to fund bold entrepreneurs developing the next critical technologies. As a nonprofit, we combine capital with expertise to create lasting environmental impact. We reinvest any returns back into future projects.
Often, discussions about philanthropic goals focus on preventing harm rather than fostering new solutions. We urgently need to accelerate clean energy technology alongside traditional environmental protection efforts.
For example, a carbon dioxide removal facility we work with has strong local support but faces unexpected pushback from some environmental advocates. This entrepreneur shared, “I wanted to change the world, yet I’m meeting resistance from those who should align with me.”
This recurring scenario shows how innovators often encounter obstacles from groups aiming to address climate change.
In planning meetings about the future of data centers, which are projected to attract $7 trillion in investments by 2030, the focus was primarily on halting new projects. Instead, we need to develop strategies that engage communities while efficiently utilizing resources for clean energy and sustainable materials.
This challenge extends to policies that lag behind the urgent need to address climate change. Sometimes, current environmental policies inadvertently raise costs for critical solutions.
The Role of Philanthropy
Philanthropy can play a crucial role in launching new initiatives, supporting leadership, and providing capital. Surprisingly, many funders still don’t leverage their resources to effectively drive market changes needed to boost climate innovations. A 2022 study found that over 90% of philanthropic leaders see climate change as a major threat, yet only 2% of foundation dollars support climate solutions.
Innovations like solar energy and electric vehicles were once seen as risky, but they are now proven, cost-effective alternatives. New breakthroughs—such as in critical minerals and industrial efficiency—also need similar support to thrive.
Tim Latimer, CEO of geothermal company Fervo Energy, highlighted, “Enhanced geothermal progress is largely due to philanthropic support that took risks where others hesitated.” As government funding shrinks, the importance of philanthropic backing intensifies.
Building for a Better Future
At Elemental, we see that impact-driven investments are effective. Companies we support are 2.5 times more likely to scale successfully. For every dollar invested, they can attract an additional $100 in funding. Working closely with entrepreneurs, we understand the factors that lead to success and obstacles that hinder progress.
In an age marked by rapid technological advancements, we need leaders who can identify and foster innovations that significantly benefit our communities and the environment. The way forward requires shaping and expediting those innovations that promise the most substantial positive impact.
This is a pivotal moment for innovation. When entrepreneurs, philanthropists, government officials, and communities collaborate, they can create real change. Together, we can be bold and build a sustainable future.
For more insights on climate solutions and philanthropic efforts, check out the Center for Effective Philanthropy and Climateworks Foundation.
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catalytic capital, philanthropy
