This week I am heading to Baku, Azerbaijan where world leaders and stakeholders such as my organization, the Global Entrepreneurship Network are converging for COP29 to discuss climate change. However, fewer heads of state are expected here than hoped with some notably absent like Brazilian President Luiz Inácio Lula da Silva, German Chancellor Olaf Scholz, Dutch Prime Minister Dick Schoof, Chinese President Xi Jinping, Indian Prime Minister Narendra Modi, and even President Joe Biden.
But while governments, international organizations, and large corporations hold significant sway in shaping policy and financing large-scale environmental change, a critical yet often overlooked force in the fight against climate change is the dynamic world of startups, new firms, and deep technology. These entities, with their agility, innovation, and capacity to scale novel solutions, are playing a pivotal role in reducing carbon emissions—and they’re doing it faster than many expect. Fears about a lesser US commitment to climate change might be allayed by one fact. US startups and deep tech investments are not just complementing public sector efforts but accelerating the pace of carbon emission reductions, offering powerful solutions that could drive the world closer to its net-zero targets.
The Power of Startups and New Firms in Climate Action
Startups and new firms are nimble, adaptive, and driven by innovation. They don’t carry the legacy burdens of older corporations, which can make them more agile in experimenting with novel ideas and rapidly deploying groundbreaking technologies. This ability to experiment and iterate quickly allows these companies to address some of the most pressing challenges in the fight against climate change, especially the reduction of carbon emissions. Here are some key considerations:
- Innovative Technologies: Startups are at the forefront of cutting-edge technologies that are revolutionizing how industries approach carbon reduction. Whether in energy storage, alternative fuels, carbon capture, or energy-efficient building materials, these emerging firms are providing breakthrough solutions that can scale up quickly to meet global demand. Take, for example, advanced battery technologies that allow renewable energy to be stored more efficiently, or carbon capture solutions that help remove CO2 from the atmosphere.
- Disruption of Traditional Industries: New firms are often disrupting traditional industries, encouraging established companies to rethink their carbon footprints and adopt more sustainable practices. From green construction materials to sustainable fashion, these startups are not only reducing emissions but also creating new standards for industries to follow. By challenging the status quo, they accelerate the transition to a low-carbon economy.
- Flexible Business Models: Unlike larger corporations that may be slower to pivot due to entrenched business models, startups can adopt flexible and innovative approaches. This adaptability enables them to tap into emerging market needs, such as carbon trading platforms, green finance, and environmentally friendly consumer goods.
Alongside increasing rates of climate-related new firm formation around the world is deep technology which is proving to be a game-changer in carbon emissions reduction. I arrived here in Baku for COP29 from our Entrepreneurship World Cup in Riyadh, where GEN had recruited the top 100 finalists from 52 countries to compete for a share of $1 million in prizes and more. Almost all companies now leverage AI in their models. While the concept of “deep technology” often conjures images of high-tech gadgets and futuristic innovations, its true impact on climate action lies in its ability to solve complex, large-scale environmental challenges. Deep tech firms typically focus on breakthrough innovations in fields such as AI, quantum computing, biotechnology, and advanced materials—all of which have profound potential to reduce carbon emissions. Let’s look at some examples:
- AI and Machine Learning for Emissions Tracking: One of the most promising areas of deep tech is the use of artificial intelligence (AI) and machine learning (ML) to optimize energy use, reduce waste, and track emissions more accurately. By leveraging vast amounts of data, AI can identify inefficiencies across supply chains, manufacturing processes, and energy systems, helping organizations to pinpoint where emissions reductions can be made.
- Quantum Computing for Carbon Capture: Quantum computing, still in its early stages, could revolutionize carbon capture technologies. It promises to help scientists model molecular interactions at a level of precision that classical computers cannot achieve. This could lead to the development of new materials that absorb CO2 more efficiently or enable more effective direct air capture (DAC) techniques—innovations that could drastically reduce emissions in the coming decades.
- Advanced Materials for Sustainability: Deep tech startups are also pioneering new materials that can replace carbon-intensive ones. For example, carbon-negative concrete alternatives, bioplastics, and more efficient solar cells are all technologies being developed by deep tech companies. These materials not only reduce emissions during production but help capture and store carbon over their life cycles, contributing to long-term sustainability.
- Biotechnology and Carbon Utilization: Biotechnology is another area where deep tech is showing immense promise. Companies are harnessing genetically engineered organisms to capture and convert carbon dioxide into useful products, such as biodegradable plastics or even fuels. These biotechnologies offer a unique dual benefit: reducing CO2 in the atmosphere while creating valuable, sustainable products.
The Role of COP29 in Fostering Collaboration Between Startups, Deep Tech, and Governments
The role of international climate summits like COP29 cannot be underestimated when it comes to fostering collaboration between startups, deep tech firms, and governments. While these startups and new firms are driving innovation, they still face significant challenges in scaling their technologies, securing funding, and navigating complex regulatory environments. In these areas, developed economies with reliable regulatory environments for investors and deep pockets are crucial and President-elect Trump is not only aware of these but supportive of this important role for the United States.
Governments can also play a pivotal role in creating an enabling environment for innovation by:
- Increasing Investment in Green Startups: Financial support is crucial for startups to take their innovations to market. COP29 discussions could pave the way for more climate-focused venture capital, government-backed grants, and low-interest loans for green startups.
- Building Regulatory Frameworks for Deep Tech: Policymakers need to ensure that regulations are in place to support the safe and responsible deployment of deep tech solutions. From AI to biotechnology, these technologies require clear standards and governance structures to ensure they are deployed ethically and effectively.
- Facilitating Public-Private Partnerships: One of the most effective ways to accelerate the deployment of new technologies is through public-private partnerships (PPPs). At COP29, world leaders can establish frameworks for PPPs that pair the expertise of startups with the scale and reach of established corporations and governments, ensuring that the most promising climate technologies can be deployed at a global scale.
Startups and Deep Tech Are the Key to Achieving Net Zero
At COP29, the spotlight will be on the actions needed to combat climate change, with particular emphasis on reducing carbon emissions. The emergence of startups and deep tech firms offers a powerful solution to this challenge. Through innovation, disruption, and groundbreaking technologies, these firms are paving the way for a cleaner, more sustainable future.
However, for these companies to truly realize their potential, they need support in the form of investment, policy frameworks, and collaboration with larger organizations and governments. COP29 represents a crucial opportunity to align these interests, ensuring that the full potential of startups and deep technology can be harnessed to accelerate the world’s journey to net-zero emissions.
In the coming years, the innovative solutions driven by startups and deep tech today will be key to unlocking the necessary reductions in carbon emissions that will allow us to meet our climate goals and safeguard the planet for future generations.