Unlocking Solutions: How Technology Can Overcome the Shortcomings of Climate Diplomacy

By Gregory Dewerpe

In late November, delegates gathered by the Caspian Sea for COP29. Their discussions were crucial. The U.N.’s latest emissions gap report revealed a troubling trend: we’re not meeting the goals set in the Paris Agreement. Without a change, we risk missing the 2030 targets.

It’s clear: climate talks alone won’t bring us to a net-zero world. We need to invest our time and resources into real solutions that help create a sustainable economy.

Politicians and activists alone can’t save our planet. Often, their good intentions may actually cause harm by overshadowing key discussions. The push for extreme lifestyle changes, like giving up meat or limiting travel, might feel right, but they won’t significantly affect our climate issues.

We need practical approaches. Technology could be our ally. It holds the promise for a cleaner and more efficient economy.

Some may find it risky to invest in innovation, especially after Northvolt’s bankruptcy, but the way forward is to embrace experimentation. Human creativity can find solutions to many problems we face today.

We must secure our energy through renewables and work to reduce carbon from buildings. It’s critical for addressing our biggest environmental challenges.

Rethinking Real Estate

One area needing immediate attention is real estate. This sector is the largest asset class globally, responsible for nearly 40% of carbon emissions, far greater than transportation. With more people moving to cities, we’ll spend around $187 trillion on new buildings by 2050.

To succeed as a society, we must invest in reducing emissions from buildings. This includes managing both carbon produced during construction and while operating buildings.

Surprisingly, investors still overlook this opportunity. Less than 5% of global venture funds are directed toward built world tech. This is a fraction compared to sectors like clean mobility, despite the larger pollution impact from real estate.

Policymakers should focus on encouraging investments that address climate change in real estate and infrastructure, rather than just symbolic financial pledges.

Financial Incentives Matter

As Charlie Munger wisely said, “show me the incentive, and I’ll show you the outcome.”

Transitioning our economies requires more than good intentions. We must create financial reasons for businesses to adopt sustainable practices. Built world climate solutions not only benefit the environment but can also increase profits.

According to our recent State of Built World Tech report, while investment has dipped, this sector still outperformed fintech and broader climate tech markets. Some areas even saw significant growth, like grid tech and building operations robotics. However, sectors such as residential retrofits still struggle due to inconsistent funding.

This should be a priority for policymakers. The Inflation Reduction Act and the European Green Deal provide helpful incentives. We shouldn’t let these fade due to political disagreements. More ambitious actions are needed, especially after the Northvolt issue.

In a world full of uncertainties—geopolitical tensions, social divides, and climate challenges—it’s easy to feel overwhelmed. Yet, we can choose a path of optimism and progress, focusing on the creative possibilities of human innovation.

Let’s work together to shape a better future.

Gregory Dewerpe is the founder and managing partner of Noa, Europe’s largest venture capital firm dedicated to the built world. He has a wealth of experience in real estate and climate tech, focusing on finding solutions to reduce carbon emissions in the industry. He previously founded AMD Capital, which specialized in real estate investment and advisory.

Illustration: Dom Guzman