[HN Gopher] Lessons learned after 5 years of climate tech entrep...
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       Lessons learned after 5 years of climate tech entrepreneurship
        
       Author : corradio
       Score  : 88 points
       Date   : 2021-11-18 13:40 UTC (2 days ago)
        
 (HTM) web link (oliviercorradi.com)
 (TXT) w3m dump (oliviercorradi.com)
        
       | m12k wrote:
       | The core problem here is that emitting carbon doesn't cost the
       | polluters much, so helping them or their customers to avoid it
       | doesn't save them money. It's not a pain point, so the only
       | motivation for them to do anything about it would be
       | altruism/"Look How Green We Are!" CSR marketing. That's why the
       | world desperately needs a carbon tax, so emission goes from being
       | an externality (i.e. somebody else's problem) to being priced
       | into the activities that emit. So the producers get a real
       | incentive to change, and throw money at the problem, because it
       | helps their bottom line to do so. So those that can easily change
       | to less emitting techniques will do so. So those that can't will
       | help fund research into tech that will. So there's a market for
       | green tech like this. So consumers will favor less carbon-
       | intensive products, not just if they are hippies, but simply
       | because they value their wallets.
       | 
       | The only way to make a massive, global change like this up and
       | down the supply chain is to give everyone involved - from
       | producers to logistics to consumers - a direct economic incentive
       | to do so. A carbon tax fits that bill, and allows the market to
       | do what it does best.
        
         | smackeyacky wrote:
         | A lot of companies think this way, but it isn't necessarily
         | true that excess carbon emissions aren't a financial pain
         | point. Putting aside the implementation of carbon taxes, there
         | are a lot of enterprises out there who could increase their
         | productivity and reduce carbon emission as a side effect.
         | 
         | Agriculture in particular would fit in that category but any
         | manufacturer emitting carbon is basically burning something
         | that they could burn less of and save money.
         | 
         | So I don't think carbon emission reduction is necessarily a
         | good way to market a company. Efficiency and cost savings that
         | just happen to reduce emissions? That's where the focus should
         | be.
        
           | tuatoru wrote:
           | Companies use fossil fuels because they have no choice,
           | either because of chemistry or because of the doctrine of
           | shareholder primacy, or because they lack access to credit.
           | 
           | There are no alternatives to carbon-intensive inputs in the
           | offing for many industries. For all of them, efficiency
           | measures require capital investment. Borrowing to install
           | efficiency measures reduces next-quarter returns to
           | stockholders. Companies with low profits have a hard time
           | borrowing.
           | 
           | Yes, it may be a pain point, but it's also a coordination
           | problem (or three).
           | 
           | The cases where efficiency provides a clear benefit? Few and
           | small, on the global scale.
        
           | m12k wrote:
           | > Efficiency and cost savings that just happen to reduce
           | emissions? That's where the focus should be.
           | 
           | Isn't that where the focus has already been for decades?
           | Which has pretty definitely proven itself insufficient for
           | curbing emissions at anywhere near the scales that we need?
        
         | sokoloff wrote:
         | From an engineering/economic perspective, I totally agree. From
         | a sociology/philosophy perspective, a lot of the West was built
         | on cheap carbon emission. Can we realistically take all that
         | embodied energy that represents our current state and
         | expect/demand that developing nations to pay the same price for
         | carbon as we do, starting now?
        
           | glogla wrote:
           | Do we have other choices, when the alternative is the
           | Apocalypse?
           | 
           | And it's not like rest of the world doesn't benefit at all.
           | The early adopters always pay more, the late adopters get to
           | leapfrog.
        
             | shreyshnaccount wrote:
             | I agree with this, but the gp prolly wanted to brimg up
             | that developed countries will offer subsidies that
             | develping ones cant, just like in agriculture. Imo
             | developed countries need to enact it first, and without
             | subsidies and then pressure developing countries, even
             | though developing countries produce more carbon. From a
             | pure logic perspective thats not the optimal solution, but
             | i think thats the only remotely plausible one that will
             | make a global carbon tax work
        
           | corpMaverick wrote:
           | Developing countries get to avoid the mistakes done by
           | developed countries. For example, the amount car dependency
           | in the US is unsustainable. Developing countries could build
           | their cities with higher density, walk-able, and bike-able.
           | It is cheaper, you get higher quality of life without such a
           | high carbon footprint.
        
           | tomrod wrote:
           | > Can we realistically take all that embodied energy that
           | represents our current state and expect/demand that
           | developing nations to pay the same price for carbon as we do,
           | starting now?
           | 
           | Yes. Because the alternatives are stark and unwelcoming. And
           | developed nations should enact development sharing to assist
           | at the desire of the developing nations (way more than tokens
           | and pittances).
           | 
           | If we want to go far, we have to go together.
        
             | sokoloff wrote:
             | What's in it for a developing county to not defect? I think
             | to make this work, you need transfer payments from
             | developed countries to developing countries and to have
             | those payments tied to effective carbon taxation.
             | 
             | For that matter, we probably need transfer payments here in
             | the US. Put another $5/gallon of taxes on gasoline and you
             | smack the working class hard. Do that and give every
             | individual (literally everyone) who files a tax return 1000
             | gallons worth of the tax. Commit to reducing the gallon
             | subsidy by 25 gallons per year per person and increasing
             | the tax by 5% per year for the next 20 years. Evaluate
             | every 5 years and see how you're doing towards your goals.
             | At the end, you're taxing gas about $10/gallon in today's
             | money and subsidizing everyone $5K (in today's money) to
             | cover some of the increased costs of goods and transport,
             | but giving a painful signal at the pump to incent
             | minimizing gas consumption.
             | 
             | I've thought about those numbers for five minutes.
             | Undoubtedly, better numbers can be chosen, but I think
             | we're going to have to give money in one motion and take it
             | away in carbon taxes in another in order to be able to
             | implement carbon taxes steep enough to change behavior.
        
               | coryrc wrote:
               | Washington state voted on a smaller version of that,
               | I-732, but it was opposed by half the environmental
               | groups because they couldn't skim money off the top for
               | themselves. So unfortunately it's going to be hard to
               | pass such laws.
               | 
               | https://en.m.wikipedia.org/wiki/2016_Washington_Initiativ
               | e_7...
        
         | [deleted]
        
       | geewee wrote:
       | Having worked in the ClimateTech sector for a few years (and with
       | no intention to stop) - I can definitely emphasize with the
       | potential for burnout. It's really ease to start caring immensely
       | about your work, which can be great - but also needs some sort of
       | balance so that it doesn't hit too hard when it doesn't work out.
        
       | diafygi wrote:
       | > Failure to pick problems that are relevant for both will result
       | in increased decision making complexity at all levels of the
       | organisation: do we optimise for impact (the environmental
       | problem) or for revenue (the customer's problem)?
       | 
       | I've been an climate tech entrepreneur for the past 7+ years, and
       | the most reliable way I've found to accomplish the combo viable-
       | business + climate-impact:
       | 
       | 1. Get a job at a revenue generating climate-change-fighting
       | company (solar, EVs, policy/regulatory consulting, etc.).
       | 
       | 2. Keep your eyes open for pain points that your company (or
       | especially you in your position) would pay money to solve.
       | 
       | 3. Quit and start a company solving that pain point (or if you're
       | not the founder-type, go work for a company trying to solve that
       | pain point).
       | 
       | I suppose this kind of strategy would work in many other
       | industries, but it's especially effective in climate tech,
       | because:
       | 
       | (a) As OP mentions, the pain points are very hidden to the
       | general public, so you really need to be actually working inside
       | the industry to find and understand them (since energy often has
       | very complex business models and regulatory constructs).
       | 
       | (b) By focusing on finding pain points for already climate-
       | change-fighting companies and solving them, your impact goals are
       | already built-in, since you're enabling more impact by default.
       | So you don't have to worry as much about finding the magical
       | combo of viable-business + impact.
       | 
       | (c) The climate-change-fighting sector is so young that many of
       | the pain points are still major issues and don't have many viable
       | solutions yet. In other more mature industries, many pain points
       | already have established companies solving them, so there's less
       | of green field for new companies.
       | 
       | Anyway, for people looking to fight climate change, by far the
       | biggest thing you can do is join the industry and make a career
       | out of it. There's so much ceiling here!
        
         | exdsq wrote:
         | Any chance of mentioning a few of those issues from point 2
         | that lets someone skip point 1?
        
           | clomond wrote:
           | I think thread parents point is that the problems are obtuse
           | and plentiful enough that in order to understand them you
           | need to be involved in point 1, which is arguably the hard
           | part.
           | 
           | You need to do your own discovery.
        
       | gleglegle wrote:
       | Tomorrow's efforts have been creative and very interesting to
       | follow. It was sad to hear that the demand is so weak for their
       | solutions.
        
       | toomuchtodo wrote:
       | Hey Olivier, thanks not only for sharing your learnings, but for
       | electricitymap. I believe it's foundational for measuring and
       | directing electrical climate change efforts, and wish you the
       | best on this next part of your entrepreneurial journey.
        
         | corradio wrote:
         | Thank you for the kind thoughts. These kind of messages are
         | what keep us going ;-)
        
       | guico wrote:
       | Nice read, thanks for sharing
        
       | jackconsidine wrote:
       | > Most people don't see the large impact differences of actions
       | they undertake in they everyday life (North)
       | 
       | Anyone ever used the app Joro [1]? It calculates your carbon
       | footprint based on your credit card transactions (via Plaid
       | integration) and provides convenient ways to offset. I've been on
       | it for a few months and it's had a huge impact by way of
       | behavioral nudges. Also, the carbon calculations are surprisingly
       | solid.
       | 
       | [1] https://www.joro.app/
        
       | moralestapia wrote:
       | Hi Olivier, nice to read you here. I'm bootstrapping a climate
       | tech related business in Mexico and would like to have a chat
       | someday. Please get in touch! Email in my bio.
        
       | ulnarkressty wrote:
       | Since I imagine there are a lot of interested people in this
       | thread: is there a list or an index of companies that one could
       | work at if one was interested to make a difference? Can't really
       | find any on Linkedin.
       | 
       | Or maybe the opposite is needed - a list of companies one should
       | be ashamed to work at due to their negative impact on the
       | climate?
        
         | stonlyb wrote:
         | https://climatebase.org/ and https://jobs.urban.us/ are two
         | good places to look for higher end and more nuanced career
         | opportunities to help mitigate climate change.
        
         | gtomitsuka wrote:
         | Go to jobs under https://lowercarboncapital.com/
        
       | grvdrm wrote:
       | @corradio - would be interesting to chat with you about your
       | ideas/goals.
       | 
       | I don't work in climate tech but adjacent to it: property
       | insurance. We spend a lot of time thinking about ways to mitigate
       | losses from a variety of natural catastrophes. Some of the
       | increased frequency/severity is increasingly thought to be from
       | climate change. I won't go into that here.
       | 
       | There are a lot of contradictions. Insurers are paid to take
       | risks but increasingly move away from those risks. But the actual
       | events - wildfires, floods, etc. - affect people and businesses
       | every year. Coastal property is at risk from sea-level rise, and
       | sunny-day flooding is common in Miami and other places.
       | 
       | So, I wonder if what you might focus on instead is tech that
       | helps fill some of those gaps. Offer products that help folks buy
       | protection for things that an insurer might not cover unless you
       | give them a lot of cash. Do it more cheaply with tech, if
       | possible. Private flood already exists, but I still think there's
       | a lot of opportunity and runway for other folks in that market.
       | Floods and the other perils are increasingly climate-related
       | problems that people can touch and feel. They cause damage. They
       | upend lives and businesses.
       | 
       | Other folks are tackling wildfire insurance, tornado insurance,
       | and etc. A couple of examples: https://solainsurance.com
       | https://ourkettle.com
        
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