How to Find the Next Generation of Breakthrough Tech Startups

A letter from the editor of Bloomberg Green

(Bloomberg) —

What did the era of ultralow interest rates leave behind for the climate? This period stretched from late 2008, with the financial crisis, to the recent runup by central bankers. That’s about 14 years—enough for a climate legacy. It better be, because there’s only two 14-year intervals to go before the 2050 net-zero deadline.

Cheap borrowing quadrupled global renewables consumption to more than 40 exajoules, according to BP’s data, or roughly as much total energy as India uses in a year. The cost of solar panels dropped more than 90%. Easy money made it easier to surpass 1 trillion watts of solar.

Did all that loose cash help boost ESG investing above $10 trillion? Of course. Do low rates deserve credit for the Paris Agreement? They didn’t hurt. Climate politics also became a fixture; now even an oil boss wants to be in charge.

But rock-bottom rates didn’t prevent alarming new peaks. Average temperatures jumped by a third of a degree, to 1.1C. Emissions from burning fossil fuels spiked by almost 6 billion tons per year. Atmospheric carbon shot up 8%. All these indicators are still rising.

At first glance, it’s hard to identify a colossus like Google or Amazon.com that emerged in this era and might define the economy to follow. This period yielded Uber and—uh—crypto stuff. You might think Tesla, but it was born in 2003. The better choice is CATL, the Chinese battery giant that began in 2011. Electric cars increased from almost zero to 27 million, according to BloombergNEF, and China made most of the batteries.

Maybe we’ll peer back at the recent past and see the start of even bigger things. For the past 12 years—coinciding with this generation of ultralow rates—BloombergNEF’s tech analysts have made a careful study of early-stage startups with decarbonizing potential. A small batch of standouts each year receive the designation of climate-tech Pioneers. Today, alongside a tech-focused issue of Bloomberg Green’s magazine, we’re presenting the latest group of winners, including producers of green hydrogen, cutting-edge battery recyclers and a company that’s patented a seaweed that can be fed to cows to curb the planet-warming impact of beef.

Hundreds of climate-tech startups like these have been born thanks to venture capitalists flush with low-interest cash—and reinforced by government largesse. The frontiers of the new climate economy are all around, if you know where to look.

Welcome to the eighth issue of Bloomberg Green’s magazine.

Stories from the latest issue will continue rolling out this month, with everything we’ve published available on this collection page. The only magazine focused on climate and the energy transition is sent to our all-access subscribers, so sign up today to receive a print edition along with full digital access to Bloomberg Green. Here are some of the highlights so far…

Rust could be the future of very cheap batteries. They’re a notoriously tricky technology to master, but Form Energy built their battery in record time using a process that starts with low-cost materials and relies on a simple chemical reaction.
American school buses won’t always go vroom, vroom, vroom. Billions of dollars are helping kickstart an electrification campaign that would cut a significant amount of emissions.
The job of fixing the climate has been given to an actual fixer. Sultan Al Jaber was selected to lead COP28 — the most important climate summit. He also runs the oil and gas behemoth Adnoc.
It’s a groundwater gold rush. Banks, pension funds and insurers have been turning California’s scarce water into enormous profits, leaving people with less to drink.
Meet the climate nomads. These Americans live in their vans, buses and cars in pursuit of a simpler life using less energy.
Heat pumps need a branding makeover. Three design studios offer a vision to match their promise.
This tractor runs on cow manure. The New Holland T6 is as powerful as a diesel tractor, but it’s fueled with liquified methane.
Saving whales from wind farms. Artificial intelligence is being used to detect endangered right whales who venture too close to clean energy projects.
Where does Ron DeSantis stand on climate change? The Florida Governor has built a 2024 base with a unique mix of crusading for wetlands conservation and attacking ESG.
One California military base has a final mission. It’s being turned into climate-friendly homes and a park.
Toilets without running water. These off-grid latrines offer a sanitation solution to villagers in South Africa.
Walmart’s bike evangelist. Kourtney Barrett’s job is to get thousands of employees to choose active or public transit on a daily basis.
Can you recycle that? Here’s the ultimate cheat sheet to what can go in the bin.

More stories like this are available on bloomberg.com