Investors Join Forces to Boost Climate Tech Amid Government Cuts

Private investors are stepping up to fill the gap left by reduced government spending on climate technology. A new group called the All Aboard Coalition has formed, with members like Khosla Ventures, Breakthrough Energy Ventures, and DCVC. They plan to raise about $300 million by the end of October to support startups that are close to launching their climate solutions.

A Crucial Initiative

This initiative comes at a crucial time. Federal support for climate tech has been declining, and private funding is also drying up. For example, startups working on direct-air capture technology saw a big drop in investment this year. These machines pull carbon dioxide from the air, but they are expensive and take time to develop.

Startups Struggling

Many startups that started during the Biden administration are now struggling. They have the technology ready but lack the money to build their projects. The Trump administration has cut funding and frozen grants, making it even harder for these companies to get the support they need.

Challenges Faced by Climate Tech Startups

The situation is tough for many climate tech startups. Several carbon capture companies have already shut down, and others are cutting jobs because of high costs. Green hydrogen and long-duration energy storage projects are also facing challenges.

A Call for Collaboration

Chris Anderson, a climate investor leading the coalition, says the lack of funding is a big threat. He believes that only by working together can investors provide the support these companies need to build a low-emissions future.