You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
The Oscar-winner and El Capitan free solo-er talks to Heatmap about solar panels, fatherhood, and his new docuseries, Arctic Ascent.
In 2017, rock climber Alex Honnold went on Jimmy Kimmel Live! to promote Free Solo, the then-new documentary about his unassisted climb of Yosemite’s El Capitan. “Is there anything bigger than that?” Kimmel prompted as a closing question.
“I mean, there are technically some bigger walls in the world,” Honnold said. “But they’re in very remote places — like Greenland.”
Five years and an Oscar later, Honnold was scrambling off a boat at the base of Ingmikortilaq, a crumbly sea cliff that towers nearly 1,000 feet higher than El Cap over an iceberg-ridden fjord in eastern Greenland. His intended first ascent was the culmination of a six-week adventure across ice fields and glaciers.
This time, Honnold wasn’t alone. The Greenland expedition included two other legendary climbers, Hazel Findlay and Mikey Schaefer, as well as Aldo Kane, who provided safety and technical support; Adam Kjeldsen, a Greenlandic guide; and perhaps most surprisingly, Heïdi Sevestre, a Frenchglaciologist who helped set up or run 16 different studies to collect data for scientists around the world.
The team’s adventure is captured in Arctic Ascent with Alex Honnold, a three-part docuseries that premieres on Hulu and Disney+ on February 5. Ahead of its release, I spoke separately with Honnold and Sevestre about the expedition, the importance of climate science, and their respective climbs. (While Sevestre, previously a non-climber, didn’t attempt Ingmikortilaq, she did scale a 1,500-foot rock face known as the Pool Wall while drilling rock cores for samples.) Our conversations have been lightly edited and condensed for clarity.
Unlike a lot of other outdoor sports like mountaineering or skiing or even surfing, rock climbing doesn’t seem as obviously imperiled by climate change. How did this become the cause you wanted to devote your time and money to?
Oh, I think climbing is more imperiled by climate change than most other sports. I mean, you’re right that maybe it’s not as impactful as to skiing, but it’s way more impactful than almost every other sport.
You’re still in the mountains. Wildfire smoke every summer — that’s now a thing that just didn’t exist when I was growing up climbing. Even if you’re just rock climbing, you’re always approaching in the mountains. Nowadays, most couloirs [chutes between rocks that might typically fill with snow in the winter] have melted out. Stable snow fields that have existed for generations are now melted out. Piles of teetering rubble are falling down mountainsides, and also a lot of routes are just less safe. The mountainsides themselves are collapsing, like the Aiguille du Midi gondola in Chamonix. Which, actually — one of the things we were installing in Greenland were temperature sensors on one of the cliffs, related to studying how rocks thaw out, what happens when permafrost melts. I would say that climate change is still incredibly relevant for us.
Your way into climate was through your climbing, then?
A big part of my environmental awareness in general is because of the experiences I’ve had outdoors as a climber. But long before [the Greenland expedition], I started a foundation in 2012 where I’ve been supporting community solar projects around the world and caring about the transition to renewables. I’ve cared about climate change forever. I think this was just the first opportunity to do it on mainstream television.
I saw that Arctic Ascent purchased carbon credits to compensate for production emissions. I was hoping you could talk about that decision, and how else you might have minimized your impact on the expedition, since I don’t think people are aware of how energy intensive film and TV productions can be.
In this case, other than the obvious expense of all of our flights getting to Greenland, we had a relatively low carbon footprint because we were camping the whole time. I think you’re right that a lot of television is kind of insane when you have all the RVs and everyone’s in their own thing and there’s hair and makeup and it’s just crazy with, like, a million cameras. In this case, it was basically a bunch of people camping on a glacier for six weeks, so it’s not quite the same as a Hollywood set.
But yeah, I think the idea to purchase offsets was the obvious bare minimum for a project like this. If you’re going to be doing a whole story around sea level rise, you have to do something.
The Honnold Foundation focuses on bringing solar panels to vulnerable communities, but these are fairly small projects compared to the expansive solar farms we might more traditionally think of. Why did you choose to focus your time on something that might seem, at least on paper, to be of a smaller scale than, say, electrifying the grid?
It’s a totally fair question. In 2012, it wasn’t totally clear that the world was transitioning to renewables at all. It seemed like it was inevitable, but you’re never really sure — you know, back then people were into hydrogen and you’re like, “Oh, maybe we’re going to have hydrogen cars, or maybe battery electric really takes off,” blah, blah, blah. Anyway, now it seems totally clear that the world is transitioning to renewables. Within some timeframe, like 20 to 50 years, the world will be 100% renewable.
The thing is, we currently live in a world where something like a billion people don’t have access to power, and transitioning to renewables will still leave us in a world where a billion people don’t have access to power. [Editor’s note: The number of people living without electricity today is actually closer to 760 million.] As the system changes, there are so many people who are left behind. What the Honnold Foundation tries to do is find that sweet spot in helping with the transition, helping the people who are being left behind.
Part of that is just by necessity — I’m a professional rock climber, I’m not a tech billionaire. So the small-scale grants just make more sense to some extent, but they also have the biggest impact on human lives because when you do these small-scale projects, you can fundamentally change the way people live. That’s a huge impact.
I live in Las Vegas, and you see huge solar farms around the desert. It’s great; the grid is going 100% renewable. I’m into that. But realistically, the only difference it makes in most people’s lives is maybe a small change in their utility rate. Really, the people that benefit are the utility shareholders — it’s some Warren Buffett-owned utility in my case, NV Energy. That really isn’t that inspiring. This is my long rant to say that the Honnold Foundation is trying to help the humans who need it the most.
Did you get a chance to use solar panels on the Greenland expedition?
On this trip, no, because they were running a generator for production and it was charging, like, 50 batteries.
It’s funny because we did an expedition in Antarctica where we made a little climbing film as well. And on that trip, they planned to take a generator and then somebody just forgot the fuel. So we got there and we were like, “Oh, no,” and we wound up doing the whole trip off solar and it totally worked.
This was your first expedition since becoming a father. You’ve worked on the climate cause for a long time now, but I’m curious if your perspective has changed at all since your daughter June joined your family — and I know you have another daughter on the way!
Yeah, soon! No, I don’t think my perspective has changed too much. I’ve always cared about these kinds of issues. The bigger change is in the way that I spend my time. Having a family forces me to be a little bit tighter about the choices that I’m making, what expeditions I choose to go on. That makes a trip like this even more worthwhile, where you get to do great climbing and there’s a real purpose behind it, and you get to share important knowledge about things that matter.
Can you tell me a little more about the decision to bring Heïdi on board? I heard her version of the story earlier this week but I’m curious about how you found her and roped her in.
Isn’t she so amazing?
She was delightful!
That’s the thing with Heïdi. Because when you spend time with her, she just makes you care about about ice. And I don’t even like ice. It’s not my thing; I like rocks. But she made me much more knowledgeable and much more caring about that type of world.
Do you consider yourself an optimist when it comes to climate change?
I think so, which is weird because I’m optimistic despite all the data to the contrary. I understand the predictions, but there’s so much to gain. So far it’s been 20 years that I’ve been reading environmental nonfiction and we haven’t really chosen to make anything of this opportunity, but we still have this incredible opportunity to build a better world to live in, a cleaner world. We can still choose that at any point. And I just keep thinking that at some point, we’re going to choose it. You can’t keep ignoring the obvious thing forever.
How did you get involved in the Arctic Ascent expedition?
This was an absolute dream come true for me — I felt extremely lucky to get a call from the team. It is extremely challenging to go to that one remote location, one of the least studied places on Earth. But Alex, as you know, is a firm believer in the scientific work. The planets really aligned. It took about a year prior to the expedition to design the work we could do with boots on the ground.
I wanted to know what it was like to put together scientific objectives for an expedition like this. It’s a little bit unconventional because there’s a film crew and there was climbing involved.
I think it was extremely brave and extremely daring of the entire team to have the willingness to invite the scientists on board. Because not only did we have the best climbers in the world climbing in a very challenging and hostile environment, we’re also filming a series of documentaries and we have to do some of the very best possible science. So it’s not that easy! But what we did is, we took it step by step. We contacted all the universities and labs and institutions interested in data from this part of the world — and also interested in training me on how to collect this data. Because I really felt — it’s what I was thinking the whole time — I really felt like I was an astronaut on the ISS. I was the only one, and I had to do the best possible work.
We ended up with 16 different protocols to do on this expedition, so it was really major. And, you know, we worked with NASA, we worked with research institutes in Denmark, the University of Buffalo, and the University of Kansas, for example. So it was challenging but a dream come true to be trusted by the scientists.
Your first big polar expedition was actually to Greenland, back in 2011. Had you been back to the island between that research trip and this one?
I had spent a tiny bit of time — not so far in the field as East Greenland, but around the coastlines. But what I was doing there was mostly science communication with people who wanted to learn about the impacts of climate change on the Greenland ice sheets. So I hadn’t been on a big research expedition to Greenland since 2011. And the changes were absolutely massive.
That was going to be my question!
The Arctic is one of the fastest-warming places on Earth. Everything that’s taking place in Greenland is impacting the rest of the world, so I felt that we had a duty and a mission — on top of climbing these incredible monoliths, we actually had to bring something back to society.
In the series, you talk about how remote and understudied East Greenland is by climate scientists. But during the expedition, you were being assisted by support helicopters and by boats. So why aren’t expeditions like this one happening all the time? Is it an issue of funding or a lack of scientific interest in this particular region?
It’s crazy to think of how little data we have from the ground [in East Greenland]. We have satellites — we have as many satellites as we want. But it is very tricky to get there. What you have to understand about this place is that for 10 months of the year, there is sea ice blocking access to this field. Ten months of the year! So the rest of the year — yes, we can access by plane, we can access by boat, but it’s very expensive.
What was great about this project is that we had in mind, “How can we lower our carbon footprint?” This is why, for example, we worked with fishermen who had boats from a nearby village at the entrance of the field. It was very important for us to use local means of transportation. Of course, we had to use helicopters every now and then, because there was no other way. But it’s remote, it’s expensive, and on top of everything, it is extremely hostile.
Oh my gosh, the bashing you get when you go there! This is something that we really wanted to show in the series — how powerful nature can be. And climate change is accelerating and making these changes even more violent. So I think it’s important to show that when nature starts to be a bit destabilized, it can get very angry.
There was a paper in Nature that came out earlier this month that said nearly every glacier in Greenland has thinned or retreated over the past few decades. In the series, there’s a bit of good news, which is that the Daugaard-Jensen Glacier is a little bit more stable than you were anticipating. Do you have any insight into why that might be?
What’s so great is, it keeps part of the mystery! I like that we still don’t totally understand what’s taking place.
The scientists we’ve been working with have told us — this is a bit technical — but it has to do with the shape of the bedrock. It seems that the glacier is resting on a little ridge that might be holding everything together. This might be the reason why the glacier is still stable; also, this part of Greenland still receives a lot of snow.
But we’ve seen some cracks in this perfect picture. You know, the NASA float [that we launched on the expedition] has told us that the temperature of the water in the fjords is increasing. So it’s not all perfect. The environment around it is definitely changing, but it seems that it has some advantages.
Were there any findings from the expedition that you are particularly excited about?
All of them! But science takes a very long time, so at the moment, we’re still waiting on a lot of the results from these different protocols. But what I want to share is something that is very simple: Greenland holds a lot of ice, and if we lose the ice, it means 6 to 7 meters of sea-level rise. As you saw in the paper that was published by Nature, at the moment, Greenland is losing 30 million tons of ice per hour. What is crucial to understand is that every action we conduct back home to reduce our carbon footprints and to preserve our climate helps Greenland and helps our collective future. All this data will help us to prepare for the things to come.
Last question: Have you taken up rock climbing?
I’ll be honest: no. I think I’m a bit traumatized in a good way. I think I needed a minute to recover. But I really want to start climbing again — now, with the launch of this series, I know that it’ll be my mission for this year. Otherwise, I think Alex and Hazel will never forgive me.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
The EV-maker is now a culture war totem, plus some AI.
During Alan Greenspan’s decade-plus run leading the Federal Reserve, investors and the financial media were convinced that there was a “Greenspan put” underlying the stock market. The basic idea was that if the markets fell too much or too sharply, the Fed would intervene and put a floor on prices analogous to a “put” option on a stock, which allows an investor to sell a stock at a specific price, even if it’s currently selling for less. The existence of this put — which was, to be clear, never a stated policy — was thought to push stock prices up, as it gave investors more confidence that their assets could only fall so far.
While current Fed Chair Jerome Powell would be loath to comment on a specific volatile security, we may be seeing the emergence of a kind of sociopolitical put for Tesla, one coming from the White House and conservative media instead of the Federal Reserve.
The company’s high-flying stock shed over $100 billion of value on Monday, falling around 15% and leaving the price down around 50% from its previous all-time high. While the market as a whole also swooned, especially high-value technology companies like Nvidia and Meta, Tesla was the worst hit. Analysts attributed the particularly steep fall to concerns that CEO Elon Musk was spending too much time in Washington, and that the politicization of the brand had made it toxic to buyers in Europe and among liberals in the United States.
Then the cavalry came in. Sean Hannity told his Fox News audience that he had bought a Model S, while President Donald Trump posted on Truth Social that “I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American.” By this afternoon, Trump had turned the White House lawn into a sales floor for Musk’s electric vehicles. Tesla shares closed the day up almost 4%, while the market overall closed down after Trump and his advisors’ furious whiplash policy pronouncements on tariffs.
Whether the Tesla put succeeds remains to be seen. The stock is still well, well below its all-time highs, but it may confirm a new way to understand Tesla — not as a company that sells electric vehicles to people concerned about climate change, but rather as a conservative culture war totem that has also made sizable investments in artificial intelligence and robotics.
When Musk bought Twitter and devoted more of his time, energy, money, and public pronouncements to right wing politics, some observers thought that maybe he could lift the dreadful image of electric vehicles among Trump voters. But when Pew did a survey on public attitudes towards electric vehicles back in 2023, it found that “Democrats and Democratic-leaning independents, younger adults, and people living in urban areas are among the most likely to say they would consider purchasing an EV” — hardly a broad swathe of Trump’s America. More than two-thirds of Republicans surveyed said they weren’t interested in buying an electric car, compared to 30% of Democrats.
On the campaign trail, Trump regularly lambasted EVs, although by the end of the campaign, as Musk’s support became more voluminous, he’s lightened up a bit. In any case, the Biden administration’s pro-electric-vehicle policies were an early target for the Trump administration, and the consumer subsidies for EVs passed under the 2022 Inflation Reduction Act are widely considered to be one of the softest targets for repeal.
But newer data shows that the tide may be turning, not so much for electric vehicles, but likely for Tesla itself.
The Wall Street Journalreported survey data last week showing that only 13% of Democrats would consider buying a Tesla, down from 23% from August of 2023, while 26% of Republicans would consider buying a Tesla, up from 15%. Vehicle registration data cited by the Journal suggested a shift in new Tesla purchases from liberal urban areas such as New York, San Francisco, and Los Angeles, towards more conservative-friendly metropolises like Las Vegas, Salt Lake City, and Miami.
At the same time, many Tesla investors appear to be mostly seeing through the gyrations in the famously volatile stock and relatively unconcerned about month-to-month or quarter-to-quarter sales data. After all, even after the epic fall in Tesla’s stock price, the company is still worth over $700 billion, more than Toyota, General Motors, and Ford combined, each of which sells several times more cars per year than Tesla.
Many investors simply do not view Tesla as a luxury or mass market automaker, instead seeing it as an artificial intelligence and robotics company. When I speak to individual Tesla shareholders, they’re always telling me how great Full Self-Driving is, not how many cars they expect the company to sell in August. In many cases, Musk has made Tesla stockholders a lot of money, so they’re willing to cut him tremendous slack and generally believe that he has the future figured out.
Longtime Tesla investor Ron Baron, who bought hundreds of millions of dollars worth of shares from 2014 to 2016, told CNBC Tuesday morning, that Musk “believes that digitization [and] autonomy is going to be driving the future. And he thinks we’re … on the verge of having an era of incredible abundance.”Baron also committed that he hasn’t, won’t, and will never sell. “I’m the last in, I’ll be the last out. So I won’t sell a single share personally until I sell all the shares for clients, and that’s what I’ve done.”
Wedbush Securities’ Dan Ives, one of the biggest Tesla bulls on the street, has told clients that he expects Tesla’s valuation to exceed $2 trillion, and that its self-driving and robotics business “will represent 90% of the valuation.”
Another longtime Tesla bull, Morgan Stanley’s Adam Jonas, told clients in a note Monday that Tesla remained a “Top Pick,” and that his price target was still $430, compared to the stock’s $230.58 close price on the day. His bull case, he said, was $800, which would give the company a valuation over $2.5 trillion.
When the stock lags, Jonas wrote, investors see Tesla as a car company. “In December with the stock testing $500/share, the prevailing sentiment was that the company is an AI ‘winner’ with untapped exposure to embodied AI expressions such as humanoid robotics,” Jonas wrote. “Today with the stock down 50% our investor conversations are focused on management distraction, brand degradation and lost auto sales.”
In a note to clients Tuesday, Ives beseeched Musk to “step up as CEO,” and lamented that there has been “little to no sign of Musk at any Tesla factory or manufacturing facility the last two months.” But his bullishness for Tesla was undaunted. He argued that the scheduled launch of unsupervised Full Self-Driving in June “kicks off the autonomous era at Tesla that we value at $1 trillion alone on a sum-of-the-parts valuation.”
“Autonomous will be the biggest transformation to the auto industry in modern day history,” Ives wrote, “and in our view Tesla will own the autonomous market in the U.S. and globally.”
The most effective put of all may not be anything Trump says or does, but rather investors’ optimism about the future — as long as it’s Elon Musk’s future.
The uncertainty created by Trump’s erratic policymaking could not have come at a worse time for the industry.
This is the second story in a Heatmap series on the “green freeze” under Trump.
Climate tech investment rode to record highs during the Biden administration, supercharged by a surge in ESG investing and net-zero commitments, the passage of the Infrastructure Investment and Jobs Act and Inflation Reduction Act, and at least initially, low interest rates. Though the market had already dropped somewhat from its recent peak, climate tech investors told me that the Trump administration is now shepherding in a detrimental overcorrection. The president’s fossil fuel-friendly rhetoric, dubiously legal IIJA and IRA funding freezes, and aggressive tariffs, have left climate tech startups in the worst possible place: a state of deep uncertainty.
“Uncertainty is the enemy of economic progress,” Andrew Beebe, managing director at Obvious Ventures, told me.
The lack of clarity is understandably causing investors to throw on the brakes. “We’ve talked internally about, let’s be a little bit more cautious, let’s be a little more judicious with our dollars right now,” Gabriel Kra, co-founder at the climate tech firm Prelude Ventures, told me. “We’re not out in the market, but I would think this would be a really tough time to try and go out and raise a new fund.”
This reluctance comes at a particularly bad time for climate tech startups, many of which are now reaching a point where they are ready to scale up and build first-of-a-kind infrastructure projects and factories. That takes serious capital, the kind that wasn’t as necessary during Trump’s first term, or even much of Biden’s, when many of these companies were in a more nascent research and development or proof-of-concept stage.
I also heard from investors that the pace of Trump’s actions and the extent of the economic upheaval across every sector feels unique this time around. “We’re entering a pretty different economic construct,” Beebe told me, citing the swirling unknowns around how Trump’s policies will impact economic indicators such as inflation and interest rates. “We haven’t seen this kind of economic warfare in decades,” he said.
Even before Trump took office, it was notoriously difficult for climate companies to raise funding in the so-called “missing middle,” when startups are too mature for early-stage venture capital but not mature enough for traditional infrastructure investors to take a bet on them. This is exactly the point at which government support — say, a loan guarantee from the Department of Energy’s Loan Programs Office or a grant from the DOE’s Office of Clean Energy Demonstrations — could be most useful in helping a company prove its commercial viability.
But now that Trump has frozen funding — even some that’s been contractually obligated — companies are left with fewer options than ever to reach scale.
One investor who wished to remain anonymous in order to speak more openly told me that “a lot of the missing middle companies are living in a dicier world.” A 2023 white paper on “capital imbalances in the energy transition” from S2G Investments, a firm that supports both early-stage and growth-stage companies, found that from 2017 to 2022, only 20% of climate capital flowed toward companies at this critical inflection point, while 43% went to early-stage companies and 37% towards established technologies. For companies at this precarious growth stage, a funding delay on the order of months could be the difference between life and death, the investor added. Many of these companies may also be reliant on debt financing, they explained. “Unless they’ve been extremely disciplined, they could run into a situation where they’re just not able to service that debt.”
The months or even years that it could take for Trump’s rash funding rescission to wind through the courts will end up killing some companies, Beebe told me. “And unfortunately, that’s what people on the other side of this debate would like, is just to litigate and escalate. And even if they ultimately lose, they’ve won, because startups just don’t have the balance sheets that big companies would,” he explained.
Kra’s Prelude Ventures has a number of prominent companies in its portfolio that have benefitted from DOE grants. This includes Electric Hydrogen, which received a $43.3 million DOE grant to scale electrolyzer manufacturing; Form Energy, which received $150 million to help build a long-duration battery storage manufacturing plant; Boston Metal, which was awarded $50 million for a green steel facility; and Heirloom, which is a part of the $600 million Project Cypress Direct Air Capture hub. DOE funding is often doled out in tranches, with some usually provided upfront and further payments tied to specific project milestones. So even if a grant has officially been awarded, that doesn’t mean all of the funding has been disbursed, giving the Trump administration an opening to break government contracts and claw it back.
Kra told me that a few of his firm’s companies were on the verge of securing government funding before Trump took office, or have a project in the works that is now on hold. “We and the board are working closely with those companies to figure out what to do,” he told me. “If the mandates or supports aren’t there for that company, you’ve got to figure out how to make that cash last a bunch longer so you can still meet some commercially meaningful milestones.”
In this environment, Kra said his firm will be taking a closer look at companies that claim they will be able to attract federal funds. “Let’s make sure we understand what they can do without that non-dilutive capital, without those grants, without that project level support,” he told me, noting that “several” companies in his portfolio will also be impacted by Trump’s ever-changing tariffs on imports from Canada, Mexico, and China. Prelude Ventures is working with its portfolio companies to figure how to “smooth out the hit,” Kra told me later via email, but inevitably the tariffs “will affect the prices consumers pay in the short and long run.”
While investors can’t avoid the impacts of all government policies and impulses, the growth-stage firm G2 Venture Partners has long tried to inoculate itself against the vicissitudes of government financing. “None of our companies actually have any exposure to DOE loans,” Brook Porter, a partner and co-founder at G2, told me in an email, nor have they received government grants. If you add up the revenue from all of the companies in G2’s portfolio, which is made up mainly of sustainability-focused startups, only about 3% “has any exposure to the IRA,” Porter told me. So even if the law’s generous clean energy tax credits are slashed or the programs it supports are left to languish, G2’s companies will likely soldier on.
Then there are the venture capitalists themselves. Many of the investors I spoke with emphasized that not all firms will have the ability or will to weather this storm. “I definitely believe many generalist funds who dabbled in climate will pull back,” Beebe told me. Porter agreed. “The generalists are much more interested in AI, then I think in climate,” he said. It’s not as if there’s been a rash of generalist investors announcing pullbacks, though Kra told me he knows of “a couple of firms” that are rethinking their climate investment strategies, potentially opting to fold these investments under an umbrella category such as “hard tech” instead of highlighting a sectoral focus on energy or climate, specifically.
Last month, the investment firm Coatue, which has about $70 billion in assets under management, raised around $250 million for a climate-focused fund, showing it’s not all doom and gloom for the generalists’ climate ambitions. But Porter told me this is exactly the type of large firm he wouldexpect to back out soon, citing Tiger Global Management and Softbank as others that started investing heavily during climate tech’s boom years from 2020 to 2022 that he could imagine winding down that line of business.
Strategic investors such as oil companies have also been quick to dial back their clean energy ambitions and refocus their sights on the fossil fuels championed by the Trump administration. “Corporate venture is very cyclical,” Beebe told me, explaining that large companies tend to make venture investments when they have excess budget or when a sector looks hot, but tighten the purse strings during periods of uncertainty.
But Cody Simms, a managing partner at the climate tech investment firm MCJ, told me that at the moment, he actually sees the corporate venture ecosystem as “quite strong and quite active.” The firm’s investments include the low-carbon cement company Sublime Systems, which last year got strategic backing from two of the world’s largest building materials companies, and the methane capture company Windfall Bio, which has received strategic funding from Amazon’s Climate Pledge Fund. Simms noted that this momentum could represent an overexuberance among corporations who just recently stood up their climate-focused venture arms, and “we’ll see if it continues into the next few years.”
Notably, Sublime and Windfall Bio both also have millions in DOE grants, and another of MCJ’s portfolio companies, bio-based chemicals maker Solugen, has a “conditional commitment” from the LPO for a loan guarantee of over $200 million. Since that money isn’t yet obligated, there’s a good chance it might never actually materialize, which could stall construction on the company’s in-progress biomanufacturing facility.
Simms told me that the main thing he’s encouraging MCJ’s portfolio companies to do at this stage is to contact their local representatives — not to advocate for climate action in general, but rather “to push on the very specific tax credit that they are planning to use and to talk about how it creates jobs locally in their districts.”
Getting startups to shift the narrative away from decarbonization and climate and toward their multitudinous co-benefits — from energy security to supply chain resilience — is of course a strategy many are already deploying to one degree or another. And investors were quick to remind me that the landscape may not be quite as bleak as it appears.
“We’ve made more investments, and we have a pipeline of more attractive investments now than we have in the last couple of years,” Porter told me. That’s because in spite of whatever havoc the Trump administration is wreaking, a lot of climate tech companies are reaching a critical juncture that could position the sector overall for “a record number of IPOs this year and next,” Porter said. The question is, “will these macro uncertainties — political, economic, financial uncertainty — hold companies back from going public?”
As with so many economic downturns and periods of instability, investors also see this as a moment for the true blue startups and venture capitalists to prove their worth and business acumen in an environment that’s working against them. “Now we have the hardcore founders, the people who really are driven by building economically viable, long-term, massively impactful companies, and the investors who understand the markets very well, coming together around clean business models that aren’t dependent on swinging from one subsidy vine to the next subsidy vine,” Beebe told me.
“There is no opportunity that’s an absolute no, even in this current situation, across the entire space,” the anonymous climate tech investor told me. “And so this might be one of the most important points — I won’t say a high point, necessarily — but it might be a moment of truth that the energy transition needs to embrace.”
On the energy secretary’s keynote, Ontario’s electricity surcharge, and record solar power
Current conditions: Critical fire weather returns to New Mexico and Texas and will remain through Saturday • Sharks have been spotted in flooded canals along Australia’s Gold Coast after Cyclone Alfred dropped more than two feet of rain • A tanker carrying jet fuel is still burning after it collided with a cargo ship in the North Sea yesterday. The ship was transporting toxic chemicals that could devastate ecosystems along England’s northeast coast.
In a keynote speech at the energy industry’s annual CERAWeek conference, Energy Secretary Chris Wright told executives and policymakers that the Trump administration sees climate change as “a side effect of building the modern world,” and said that “everything in life involves trade-offs." He pledged to “end the Biden administration’s irrational, quasi-religious policies on climate change” and insisted he’s not a climate change denier, but rather a “climate realist.” According toThe New York Times, “Mr. Wright’s speech was greeted with enthusiastic applause.” Wright also reportedly told fossil fuel bosses he intended to speed up permitting for their projects.
Other things overheard at Day 1 of CERAWeek:
The premier of Canada’s Ontario province announced he is hiking fees on electricity exported to the U.S. by 25%, escalating the trade war kicked off by President Trump’s tariffs on Canadian goods, including a 10% tariff on Canadian energy resources. The decision could affect prices in Minnesota, New York, and Michigan, which get some of their electricity from the province. Ontario Premier Doug Ford estimated the surcharge will add about $70 to the monthly bills of affected customers. “I will not hesitate to increase this charge,” Ford said. “If the United States escalates, I will not hesitate to shut the electricity off completely.” The U.S. tariffs went into effect on March 4. Trump issued another 30-day pause just days later, but Ford said Ontario “will not relent” until the threat of tariffs is gone for good.
There was a lot of news from the White House yesterday that relates to climate and the energy transition. Here’s a quick rundown:
The EPA cancelled hundreds of environmental justice grants: EPA Administrator Lee Zeldin and Elon Musk’s so-called Department of Government Efficiency nixed 400 grants across environmental justice programs and diversity, equity, and inclusion programs worth $1.7 billion. Zeldin said this round of cuts “was our biggest yet.”
Transportation Secretary Sean Duffy rescinded Biden memos about infrastructure projects: The two memos encouraged states to prioritize climate change resilience in infrastructure projects funded by the Bipartisan Infrastructure Law, and to include under-represented groups when planning projects.
The military ended funding for climate studies: This one technically broke on Friday. The Department of Defense is scrapping its funding for social science research, which covers climate change studies. In a post on X, Defense Secretary Pete Hegseth said DOD “does not do climate change crap. We do training and war fighting.”
Meanwhile, a second nonprofit – the Coalition for Green Capital – filed a lawsuit against Citibank over climate grant money awarded under the Inflation Reduction Act but frozen by Zeldin’s EPA. Climate United filed a similar lawsuit (but targeting the EPA, as well as Citibank) on Saturday.
A new report from the Princeton ZERO Lab’s REPEAT Project examines the potential consequences of the Trump administration’s plans to kill existing EV tax credits and repeal EPA tailpipe regulations. It finds that, compared to a scenario in which the current policies are kept in place:
“In other words, killing the IRA tax credits for EVs will decimate the nascent renaissance in vehicle and battery manufacturing investment and employment we’re currently seeing play out across the United States,” said Jesse Jenkins, an assistant professor and expert in energy systems engineering and policy at Princeton University and head of the REPEAT Project. (Jenkins is also the co-host of Heatmap’s Shift Key podcast.)
REPEAT Project
The U.S. installed nearly 50 gigawatts of new solar power capacity last year, up 21% from 2023, according to a new report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie. That’s a record, and the largest annual grid capacity increase from any energy technology in the U.S. in more than 20 years. Combined with storage, solar represents 84% of all new grid capacity added in 2024.
SEIA and Wood Mackenzie
Last year was “the year of materialization of the IRA,” with supply chains becoming more resilient and interest from utilities and corporate buyers growing. Installations are expected to remain steady this year, with little growth, because of policy uncertainty. Total U.S. solar capacity is expected to reach 739 GW by 2035, but this depends on policy. The worst case scenario shows a 130 GW decline in deployment through 2035, which would represent $250 billion in lost investments.
“Last year’s record-level of installations was aided by several solar policies and credits within the Inflation Reduction Act that helped drive interest in the solar market,” said Sylvia Levya Martinez, a principal analyst of North America utility-scale solar for Wood Mackenzie. “We still have many challenges ahead, including unprecedented load growth on the power grid. If many of these policies were eliminated or significantly altered, it would be very detrimental to the industry’s continued growth.”
Tesla shares plunged yesterday by 15%, marking the company’s worst day on the market since 2020 and erasing its post-election stock bump.