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:
If you want to decarbonize concrete, it helps to understand the incredible scale of the problem.
To say that concrete poses a decarbonization challenge would be an understatement. Cement production alone is responsible for somewhere between 5 and 10% of global CO2 emissions [0], roughly two to four times more than aviation, a fact that even the construction industry is finally coming to grips with.
And yet the real problem with decarbonizing concrete isn’t the scale of its emissions, it’s the scale of concrete itself. There is simply a preposterous amount of the stuff. Contemplating concrete is like contemplating the universe — awesome, in the old God-fearing definition of the word.
Before we get into the jaw-dropping amount of concrete we produce every year, it’s worth briefly discussing how the stuff is made, and thus where its emissions come from.
Concrete is formed by mixing together cement (mostly calcium silicates), aggregates (such as sand and gravel), and water into a liquid slurry. The cement reacts with the water, forming a paste that binds the mixture into a single solid mass. Beyond concrete’s high strength and low cost, it’s these liquid beginnings that make concrete so useful. It can easily be formed into any shape and leveled with the help of gravity so you can walk on it or park a car 10 stories up on it. Essentially all modern concrete is also reinforced with steel bars, which provide tensile strength and arrest cracks.
So what about the emissions? Roughly 70-90% of the embodied carbon in concrete comes from manufacturing just the cement [1]. Partly this is because making cement is an energy-intensive process — limestone and clay are put into a kiln and heated around 2500 degrees Fahrenheit. But it’s also because the chemical reaction that turns the limestone into cement (known as calcination) releases CO₂ as a byproduct. Roughly 50-60% of cement’s carbon emissions are due to calcination [2], and thus wouldn’t be addressed by moving to less carbon-intensive electricity sources, like green hydrogen.
Now for the good stuff. Again, the most important thing to understand about concrete is the scale of its production. The world produces somewhere around 4.25 billion metric tons of cement annually (though estimates vary) [3], which works out to about 30 billion tons of concrete produced each year [4].
How much are 30 billion tons?
One way of looking at it is we produce around 4 metric tons, or just under 60 cubic feet (roughly a cube 4 feet on a side), of concrete for each person on the planet each year.
Another way of looking at it is to consider the total amount of mass, full stop, that civilization ingests each year. Estimates here vary quite a bit, but it seems to be in the neighborhood of 100 billion tons [5]. So of the total volume of material that gets extracted and used each year — including all mining, all oil drilling, all agriculture and tree harvesting — around 30% of it by mass goes toward making concrete. The amount of concrete produced each year exceeds the weight of all the biomass we use annually, and all the fossil fuels we use annually.
Total civilization annual material extraction, via Krausmann et al 2018. This is up to 2015, and has now exceeded over 90 Gt/year, with another ~8 Gt/year of recycled material.
Another way of looking at it is that the total mass of all plants on Earth is around 900 billion metric tons. So at current rates of production, it would take about 30 years to produce enough concrete to exceed all the Earth’s plant (dry) biomass.
Because humans have been producing concrete for a while, and because concrete tends to last a long time, we seem to be on the cusp of this happening. Elhacham et al 2020 estimate that total human-created mass (roughly half of which is concrete) reached the total weight of all Earth’s biomass sometime in 2020. Eyeballing their graph, concrete alone will exceed the total weight of all biomass sometime around 2040.
Anthropogenic mass vs biomass during the 20th century, via Elhacham et al 2020
In a pure mass-flow sense, human civilization is basically a machine for producing concrete and gravel (and to a lesser extent bricks and asphalt).
So civilization uses a lot of concrete. Where is it all going?
China, mostly. In recent history, China has been responsible for roughly half the world’s cement production, and by implication, concrete use [6]. The U.S., by comparison, only uses 2%, with Europe using another 5%.
Cement production by region, via Sanjuan et al 2020. Since cement production roughly tracks consumption (see here and here), we can also use this as a rough guide toward where concrete is used. Note that this gives yet another value for total global cement production of 4.65 Gt
Here’s another view from around 2010, showing what this has looked like over time (data after 2010 is a projection).
Cement consumption by region, via Altwair 2010
This gets summarized in the oft-repeated statistic that China used more cement in three years than the U.S. did in the entire 20th century.
But since China has a much larger population than the U.S., we can get a more intuitive understanding of this by looking at cement consumption per capita. Here’s per capita consumption sometime around 2015:
Per capita cement consumption by country, via Globbulk
We see that the official numbers from China make it a huge outlier in cement consumption, using around eight times as much per capita as the U.S. However, in per capita terms, some Middle Eastern countries exceed it. Saudi Arabia is higher, and Qatar, which is somewhere over 2,000 kg/capita, is so high it doesn’t even show up on the graph. It’s the combination of China’s huge population and its huge per-capita consumption that make it such an outlier in concrete production.
The official Chinese numbers are so huge, in fact, that some analysts suspect that they’re inflated, either by manipulating the data or by producing construction projects that don’t have actual demand (or both). The graph above also includes a more “realistic” estimate (which is still 3x as high as U.S. per-capita use).
What does all this concrete construction mean in practical terms? Well, China has somewhere around 50-60% of the floor space per capita as the U.S. does, or roughly as much living space per capita as most European countries [7]. This is the result of a massive trend toward urbanization over the last quarter century. Urbanization rates went from around 25% in 1990 to 60% in 2017, a period in which China’s population also increased by 250 million. In other words, in less than 30 years over 550 million moved into Chinese cities, and they all needed somewhere to live. By building enormous numbers of concrete high rises, in under 20 years China quintupled its urban residential floor space and doubled its residential floor space overall.
Residential floor space in China over time, via Pan 2020
Beyond China, we see high per capita rates of cement use in the rest of Southeast Asia, as well as the Middle East [8].
One reason you see this volume of concrete use in lower-income, urbanizing countries is that concrete construction is comparatively labor-intensive to produce. The materials for concrete are extremely cheap, and much of its cost in high-cost labor countries (such as the U.S.) is from the labor to produce it — building and setting up the formwork, laying out the reinforcing, placing the embeds, etc. If you’re a country with a lot of low-cost labor, this is a pretty good trade-off.
In addition to the current largest users of concrete, one trend to keep an eye on long-term is India’s concrete use. If India ever proceeds on a path of mass urbanization similar to China (as some folks speculate it will), we could see a massive uptick in global concrete output — India’s urbanization rate of 34% is around where China was in the late 1990s. A shift in India toward a per capita cement consumption more consistent with the rest of Southeast Asia (say around 600 kg/capita) would increase worldwide cement consumption by about 13%, and it does seem as if India’s cement use is trending upward.
By contrast, one thing clear from this data is that the U.S. actually uses an unusually low amount of concrete. Per capita, it uses as little as any other Western country, and far, far less than some — like, surprisingly, Belgium.
So we’ve seen where it gets used in the world. Can we go deeper and look at specifically what concrete is being used for?
This will vary significantly depending on the region and the local construction tradition. In the U.S., we have roughly the following breakdown (via the Portland Cement Association):
Overall, roughly half of our concrete gets used in buildings — about 26% goes into residential buildings, 2% in public buildings, and 16% into commercial buildings. The other half gets used for infrastructure — streets and highways, water conveyance and treatment tanks, etc. Because most construction in the U.S. is just one- or two-story buildings (mostly wood for residential buildings and steel for commercial ones), concrete in buildings is probably mostly going into foundations, slabs on grade, and concrete over metal deck, though there’s probably a substantial amount going into concrete masonry units as well.
But the U.S. has a somewhat unusual construction tradition, where the vast majority of our residential construction, both single-family homes and multifamily apartments, is built from light-framed wood. In other places, it's much more common to use concrete. For instance, the U.K. uses closer to 80% of its concrete for buildings, with most of that going toward the superstructure, the concrete frame that holds the building up. China, which has urbanized on the back of huge numbers of concrete residential high rises, probably devotes an even larger share of its concrete to residential construction.
Understanding how much concrete the world uses, and where it’s being used, is important if you want to use less of it.
The scale of the industry is particularly important to keep in mind. For instance, you often see enthusiasm for the idea of replacing concrete buildings with mass timber ones. But assuming you could substitute all the world’s concrete for an equal volume of wood [9], you’d need to more than triple the total annual volume of global wood harvested [10], which puts a somewhat different spin on the issue.
Most other materials would have emissions as bad or worse than concrete if they were used on the same scale.
Consider, for instance, railway ties. In the U.S., these are still largely made out of wood, but in many places they have been replaced with concrete ties. And some places are considering changing from concrete ties to plastic composite rail ties instead. It’s hard to know the exact embodied emissions without a lot of specific details about the materials and supply chains used, but can we ballpark how much a plastic tie uses compared to a concrete one?
Per the Inventory of Carbon and Energy database, concrete varies between 150 and 400 kg of embodied CO2 per cubic meter, depending on the properties of the mix, with an “average” value of about 250. Plastics mostly have embodied emissions of about 3-4 kg of CO2 per kg of plastic, or about 3,500 kg per cubic meter (assuming a density of about 1,000 kg per cubic meter). So per unit volume, plastic has somewhere around 10 times the embodied emissions of concrete.
We can also do a more direct comparison. Consider a beam spanning around 20 feet and supporting a vertical load of 21,000 pounds per linear foot. The lightest U.S. standard steel section that will span this distance is a W16x26, which weighs about 236 kg and will have embodied carbon emissions of around 354 kg.
A concrete beam of the same depth, supporting the same load and spanning the same distance, will be 10.5 inches wide by 16 inches deep, with three #10 steel bars running along the bottom. This beam will have about 190 kg of embodied emissions from the concrete, and about another 230 kg of embodied emissions from the steel rebar. This is about 20% more than the steel beam, but in the same ballpark — and over half the “concrete” emissions are actually due to the embedded reinforcing steel.
This is arguably a nonrepresentative example (most concrete, such as in columns or slabs, will have a much lower ratio of steel), but the basic logic holds: Concrete is unusual in its total volume of use, not how emissions-heavy it is as a material. Most material substitutes that aren’t wood, recycled materials, or industrial byproducts that can be had for “free” won’t necessarily be much better when used at the same scale. In some ways, it’s surprising that the carbon emissions from concrete are as low as they are.
Of course, this calculus is likely to change over time — as electricity sources change over to lower carbon ones, you’re likely to see the embodied emissions of materials drop along with it. And since cement releases CO2 as part of the chemical process of producing it, concrete will look increasingly worse compared to other materials over time.
One potential option is to find ways of changing the cement production process to be less carbon-intensive. The easiest option is to just replace manufactured Portland Cement with some other cementitious material. Industrial byproducts such as blast furnace slag, silica fume, and fly ash, often have cementitious properties and don’t have a “carbon penalty” (since they’d be produced regardless.) Materials like these can potentially eliminate large volumes of cement in a concrete mix, and they’re a key part of current low-carbon concrete strategies — even “normal” concrete mixes tend to utilize these to some degree. But the total volume of these materials is limited by the extent of various industrial processes. And for things like fly ash (which is a byproduct from coal plants) and slag (which is a byproduct from CO2-emitting blast furnaces), we can expect production to decline over time.
Another option is to take advantage of the fact that concrete will naturally absorb CO2 over time, a process known as carbonation. Even normal concrete will absorb roughly 30% of the CO2 emitted during the production process over the course of its life. Companies like Carbicrete, Carboncure, Carbonbuilt, and Solida all offer methods of concrete production that allow the concrete to absorb CO₂ during the production process, substantially reducing embodied emissions. Interestingly, these producers mostly claim that their concrete is actually cheaper than conventional concretes, which would obviously be a massive tailwind for the technology’s adoption.
It’s not obvious what the best path forward is for addressing concrete carbon emissions (like with most things, I suspect it’ll end up being a mix of different solutions), but understanding the parameters of the problem is necessary for solving it.
Note: A version of this article originally appeared in the author’s newsletter, Construction Physics, and has been repurposed for Heatmap.
[0] - This figure varies depending on the source. Chatham House provides a frequently cited estimate of 8%. We can also ballpark it — roughly 0.93 pounds of CO₂ gets emitted for each pound of cement produced, around 4.25 billion tons of cement are produced annually, which gets ~3.95 billion tons of CO₂, and total annual CO₂ emissions are in the neighborhood of 46 billion tons, getting us a bit less than 9%.
[1] - Per Circular Ecology, ~70-90% of emissions are from the cement production process, depending on the type of concrete and what the rest of the supply chain looks like.
[2] - This seems to vary depending on where the cement is being made — in Myanmar, for instance, it’s around 46%.
[3] - Another number where the sources often don’t agree with each other, see here, here, and here for estimates on annual cement production.
[4] - Concrete is roughly 10-15% cement by weight, depending on the strength of the mix, what other cementitious materials are being used, etc. An average value of 12.5% yields 34 billion tons, which we’ll knock down to account for other uses of cement (masonry mortar, grout, gypsum overlay, etc.) This roughly tracks with estimates from PCA (“4 tons of concrete produced each year for every person on Earth”), and from the now-defunct Cement Sustainability Initiative, which estimated 25 billion tons of concrete against 3.125 billion tons of cement in 2015.
[5] - See here, here, and here for an estimate of total civilization mass flow. This doesn’t (I believe) include waste byproducts, which can be substantial — for instance, it doesn’t include the ~46 billion tons of CO₂ emitted each year, or the 16 billion tons of mine tailings, or the 140 billion tons of agriculture byproducts (though this last number is difficult to verify and seems high).
[6] - We see something similar with cement as we do with other bulky, low-value materials, in that it's made in lots of distributed manufacturing facilities relatively close to where it’s used. See here for a map of cement plants in the U.S. around 2001, for instance.
[7] - For China’s total floor space, see here (most sources seem to agree with these numbers). For U.S. floor space, see my Every Building In America article. For per-capita living space in Europe, see here.
[8] - The often high rates of cement use by middle-income countries have led some folks to develop a U-shaped cement consumption theory of industrial development — that countries start out using a small amount of cement, use more as they get richer and build up their physical infrastructure, and then eventually transition to using lower volumes of cement again. The Globbulk paper spends considerable time debunking this.
[9] - It’s not actually obvious to me what the substitution ratio would be. In strength-governed cases, you’d need proportionally more timber than concrete, but in other cases (such as replacing concrete walls with light-framed stud walls), you’d probably use less. Obviously, you can’t substitute all concrete for wood, but you can probably switch out more than you think — there’s no reason you couldn’t use wood foundations instead of concrete ones in many cases, for instance.
[10] - 30 billion tons of concrete is roughly 12.5 billion cubic meters, and total annual wood products produced is currently around 5.5 billion cubic meters.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Current conditions: Yosemite could get 9 inches of snow between now and Sunday • Temperatures will rise to as high as 104 degrees Fahrenheit in Ashgabat, Turkmenistan, as Central and Southeast Asia continue to bake in a heatwave • Hail, tornadoes, and severe thunderstorms will pummel the U.S. Heartland into early next week.
It was a busy week of earnings calls for the clean energy sector, which, as a whole, saw investment dip by nearly $8 billion in the first three months of the year. Tariffs — especially as they impact the battery supply chain — as well as changes to federal policy under the new administration and electricity demand were the major themes of the week, my colleague Matthew Zeitlin wrote.
Like companies across many different sectors, inverter and battery maker Enphase, turbine manufacturer GE Vernova, Tesla, and the utility NextEra all mentioned the tariffs in their earnings reports and calls. Enphase, for one, is bracing for as much as 8% knocked off its gross margin by the third quarter, while Tesla’s highly-anticipated call managed expectations for the rest of the year, with the company citing the difficulty measuring “the impacts of global trade policy on the automotive and energy supply chains, our cost structure, and demand for durable goods and related services.” Meanwhile, on Thursday, Xcel Energy — which recently reached settlements for its role in the ignition of the most destructive wildfire in Colorado history and the largest wildfire in Texas history — reported missing first-quarter estimates and feeling the squeeze of high interest rates at a time of soaring, data-center-driven electricity demand.
The Department of Justice’s lawyers warned the Department of Transportation that its case against New York City’s congestion pricing program is likely a loser. We know this because someone mistakenly uploaded the DOJ’s memo into the court record for the Metropolitan Transportation Authority’s lawsuit challenging Transportation Secretary Sean Duffy’s actions. Whoops.
As my colleague Emily Pontecorvo reports, the leaked memo was dated before Duffy announced “he would put a moratorium on any new federal approvals for transit projects in Manhattan until the state shut down the tolling program.” But as Emily goes on to say, the memo “warns that continuing down this route could open up both the department and Duffy personally to further probes.” The New York Times adds that the DOT has since replaced the DOJ lawyers who authored the memo and plans to transfer the case to the civil division of the Justice Department in Washington.
More than 100 new cars and vehicles are expected to debut at the 2025 Shanghai Auto Show, which began on Wednesday and runs through next Friday. Of the approximately 1,300 total vehicles on display, 70% are new energy vehicles, according to Gu Chunting, the vice chairman of the Council for the Promotion of International Trade Shanghai, one of the event’s organizers.
The show is already off to an exciting start. Volkswagen is showcasing 50 new models, including three electrified concept vehicles specifically targeted at the Chinese market: the ID. Aura sedan, the ID. Evo SUV, and ID. Era three-row SUV, a hybrid with over 621 miles of range. BYD’s Denza line also premiered its Z, a luxury electric vehicle designed to compete with Tesla and Porsche. “Beauty is in the eye of the beholder, of course, but most people will find the Denza Z to be drop dead gorgeous,” Clean Technica raved.
That’s not all. The Faw Group, a Chinese state-owned car manufacturer, showed off a flying vehicle with a range of 124 miles, while fellow Chinese automaker Changan Automobile announced an autonomous flying car that reportedly already has government approval to transport passengers, per IoT World Today. France’s Le Monde was wowed by China’s innovations all around: “Gone are the days when the vast exhibition space had one hall dedicated to foreign brands and another for Chinese ones. Today, each Chinese group occupies a hall, showcasing domestic brands and leaving only some space for foreigners around the edges.”
Volkswagen
In a private ceremony Thursday night, President Trump signed an executive order to “unleash” deep-sea mining. The order — which directs the secretaries of Interior and Commerce to accelerate “the process of renewing and issuing seabed mineral exploration licenses and commercial recovery permits” for the U.S. Outer Continental Shelf and “areas beyond national jurisdiction”— is an attempt to offset China’s dominance of the critical minerals supply chain. Deep-sea mining operations harvest “nodules” that take millions of years to form and contain minerals like nickel, copper, cobalt, and manganese necessary for lithium-ion batteries for electric vehicles, among other applications. “For too long, we’ve been over reliant on foreign sources, and today this historic announcement marks a big step in the right direction to onshore these resources that are critical to national homeland security,” a senior administration official told reporters on Thursday, as reported by CNN.
Deep-sea mining is controversial due to how little we know about the ocean’s abyss, including the potential impact of large-scale mining operations on marine biodiversity and carbon sequestration. The United States has largely abstained from the deliberations of the United Nations’ International Seabed Authority, which determines whether and how to mine the seabed for critical minerals. The industrial mining of international waters, as cued up by Trump’s executive order, is opposed by “nearly all other nations,” The New York Times writes, and is “likely to provoke an outcry from America’s rivals and allies alike.”
It has already been a tragic year for wildfires, with more than 57,000 acres of Los Angeles and the surrounding hillsides burned in January. Now, AccuWeather is predicting that fires in the U.S. could “rapidly escalate” and burn up to 9 million acres total this year, well above the historic average of 7 million acres and close to the 8.9 million acres that burned in 2024.
Specifically, AccuWeather predicts an extreme fire season in the Northwest, northern Rockies, Southwest, and South Central states, particularly as late summer and fall approach. “There was plenty of rain and snow across Northern California this winter. All of that moisture has supported a lot of lush vegetation growth this spring,” AccuWeather’s lead long-range expert, Paul Pastelok, said. “That grass and brush will dry out and become potential fuel for wildfires this fall,” when any “trigger mechanism … could cause big wildfire problems.”
AccuWeather
Slate Auto, a three-year-old Jeff Bezos-backed startup, has announced an EV truck that will cost less than $20,000 after the federal tax credit and before customization. “It’s the Burger King of trucks,” writes Car and Driver, because “it’s affordable” and “lets customers ‘have it their way’ with a lengthy accessory list, including one that turns this pickup into an SUV.”
Three weeks after “Liberation Day,” Matador Resources says it’s adjusting its ambitions for the year.
America’s oil and gas industry is beginning to pull back on investments in the face of tariffs and immense oil price instability — or at least one oil and gas company is.
While oil and gas executives have been grousing about low prices and inconsistent policy to any reporter (or Federal Reserve Bank) who will listen, there’s been little actual data about how the industry is thinking about what investments to make or not make. That changed on Wednesday when the shale driller Matador Resources reported its first quarter earnings. The company said that it would drop one rig from its fleet of nine, cutting $100 million of capital costs.
“In response to recent commodity price volatility, Matador has decided to adjust its drilling and completion activity for 2025 to provide for more optionality,” the company said in its earnings release.
In February, Matador was projecting that its capital expenditures in 2025 would be between $1.4 and $1.65 billion.This week, it lowered that outlook to $1.3 to $1.55 billion. “We’re very open to and want to have reason to grow again,” Matador’s chief executive Joseph Foran said on the company’s earnings call Thursday. “This is primarily a timing matter. Is this a temporary thing on oil prices? Or is this a new world we live in?”
Mizuho Securities analyst William Janela wrote in a note to clients Thursday morning that, as the first oil exploration and production company to report its earnings this go-round, Matador would be “somewhat of a litmus test for the sector: we don't believe the market was expecting E&Ps to announce activity reductions this soon, but MTDR's update could signal more cuts to come from peers over the next few weeks.”
West Texas Intermediate crude oil prices are currently sitting at just below $63, up from around $60 in the wake of President Donald Trump’s “Liberation Day” tariff announcements. While the current price is off its lows, it’s still well short of the almost $84 a barrel crude prices were at around this time last year.
The price decline could be attributable to any number of factors — macroeconomic uncertainty due to the trade war, production hikes by foreign producers — but whatever the cause, it has made an awkward situation for the Trump administration’s energy strategy.
The iShares U.S. Oil & Gas Exploration & Production ETF, which tracks the American oil and gas exploration industry, is down 9% for the year and more than 13% since “Liberation Day,” while the rest of the market has almost recovered as the Trump administration has indicated it may ease up on some of his more drastic tariff policies.
If other drillers follow Matador’s investment slowdown, it could imperil Trump’s broader energy policy goals.
Trump has both encouraged other countries to produce more oil (and bragged about lower oil prices) while also exhorting American drillers to “drill, baby, drill,”with enticements ranging from kneecapping emissions standards to a reduced regulatory burden.
As Heatmap has written, these goals sit in conflict with each other. Energy executives told the Federal Reserve Bank of Dallas that they need oil prices ranging from $61 to $70 a barrelin order to profitably drill new wells. If prices fall further, “what would happen is ‘Delay, baby, delay,’”Wood Mackenzie analyst Fraser McKay wrote Wednesday. “We now expect global upstream development spend to fall year-on-year for the first time since 2020.”
A $65 per barrel price “dents” margins for drillers, meaning “growth capex and discretionary spend will be delayed,” McKay wrote.
Matador also announced that it had authorized $400 million worth of buybacks, and itsstock price rose some 4% on the earnings announcement, indicating that Wall Street will reward drillers who pull back on drilling and ramp up shareholder payouts.
“We’ve got the tools in the toolbox, including the share repurchase, to make Matador more value quarter by quarter,” Foran said. Rather than “blindly” pouring capital into growth, Matador would aim for a “measured pace,” he explained. “And if you mean what you say about a measured pace, that means when prices get a little lower, you take a few more moments to think about what you’re doing and don’t rush into things.”
At San Francisco Climate Week, everything is normal — until it very much isn’t.
San Francisco Climate Week started off on Monday with an existential bang. Addressing an invite-only crowd at the Exploratorium, a science museum on the city’s waterfront, former vice president and long-time climate advocate Al Gore put the significance and threat of this political moment — and what it means for the climate — in the most extreme terms possible. That is to say, he compared the current administration under President Trump to Nazi Germany.
“I understand very well why it is wrong to compare Adolf Hitler’s Third Reich to any other movement. It was uniquely evil,” Gore conceded before going on: “But there are important lessons from the history of that emergent evil.” Just as German philosophers in the aftermath of World War II found that the Nazis “attacked the very heart of the distinction between true and false,” Gore said, so too is Trump’s administration “trying to create their own preferred version of reality,” in which we can keep burning fossil fuels forever. With his voice rising and gestures increasing in vigor, Gore ended his speech on a crescendo. “We have to protect our future. And if you doubt for one moment, ever, that we as human beings have that capacity to muster sufficient political will to solve this crisis, just remember that political will is itself a renewable resource.”
The crowd went wild. Former House Speaker Nancy Pelosi took the stage and reminded the crowd that Gore has been telling us this for decades — maybe it’s time we listen. But I missed all that. Because just a few miles away, things were getting a little more in the weeds at the somewhat less exclusive venture capital-led panel entitled “The Economics of Climate Tech: Building Resilient, Scalable, and Sustainable Startups.” Here, I learned about a new iron-sodium battery chemistry and innovations in transformers for data centers, microgrids, and EV charging infrastructure.
I heard Tom Chi, founding partner of At One Ventures, utter sentences such as “parity dies because of capex inertia,” referring to the need to make clean tech not only equivalent to but cheaper than fossil-fuels on a unit economics basis. Such is the duality of climate week during the Trump administration — occasionally lofty in both its alarm and its excitement, but more often than not simply business-as-usual, interrupted by bouts of heady doom or motivational proclamations.
Some panels, like the one I moderated on the future of weather forecasting using artificial intelligence, made it a full hour without discussing Trump, tariffs, or tax credits at all. So far, that’s held true for a number of talks on how AI can be a boon to climate tech. It makes sense — the administration is excited about AI, and there’s really no indication that Trump has given any thought to either the positive or negative climate externalities of it.
But rapid data center buildout and the attendant renewables boom that it may (or may not) bring will certainly be influenced by the administration’s fluctuating policies, an issue that was briefly discussed during another panel: “AI x Energy: Gridlocked or Grid Unlocked?” Here, representatives from Softbank, Pacific Gas & Electric, and the data center builder and operator Switch touched on how market uncertainty is making it difficult to procure energy for data centers — and to figure out the cost of building a data center, period.
“There is a lot of refiguring and rereading contracts and looking at the potential exposure to things like the escalation in the cost of steel for construction projects,” Skyler Holloway of Switch said. Pinning down a price on the energy required to power data centers is also a bottleneck, Gillian Clegg, vice president of energy policy and procurement at PG&E explained. “For projects that want to connect between now and 2030, any kind of uncertainty or delay means that the generation doesn't get to the market,” Clegg said. “Maybe the load gets there first, and you have an out of balance situation.”
Everyone acknowledges that uncertainty is bad for business, and that delays related to funding, contracts, and construction can kill otherwise viable companies. But unsurprisingly, nobody here has admitted that said uncertainty might put them out of business, or even deeply in the red.Every panel I attend, I find myself wondering whether a founder or investor is finally going to raise their voice, à la Al Gore, and tell the audience that while their company’s business model is well and good, the Trump administration’s illogical antipathy towards green-coded tech and ill-conceived trade war is throwing the underlying logic — sound as it may have been just a year ago — into disarray.
None of the seven energy, food, and agricultural startups that presented at the nonprofit climate investor Elemental Impact’s main show, for instance, discussed the impacts of the administration’s policies on their businesses. Rather, they maintained a consistently upbeat tone as they described the promise of their concepts — which ranged from harnessing ocean energy to developing plant-based fertilizers to using robotics for electronics recycling — and the momentum building behind them. Nuclear and geothermal companies, seemingly poised to be the clean tech winners of Chris Wright’s Department of Energy, have been especially optimistic this week.
But really, what else can climate tech companies and investors be expected to do right now besides, well, rise and grind? It’s not like anybody has answers as to what’s coming down the policy pike. In a number of more casual conversations this week, a common sentiment I heard was that it’s not necessarily a bad time to be an early-stage startup — keep your head down, focus on research and prototyping, and reassess the political environment when you’re ready to build a pilot or demonstration plant. As for later-stage companies and venture capital firms, they’re likely working to ensure that their business models and portfolios really aren’t dependent on government subsidies, grants, or policies — as they keep assuring me is the case.
Even that might not be enough these days though. Chi said he’s always tailored his investments with At One Ventures towards companies that are viable based on unit economics alone, no subsidies and no green premium. So he wasn’t initially worried about his portfolio when Trump was elected. “None of our business models were invalidated by the election,” he said. “The only way that we could be in trouble is if they mess it up so bad that it ruins all of business, not just climate …”
Oops.
If there’s one dictum that I would expect to hold, though, it’s that the startups that make it through this period will likely be around for the long haul. I’ve been hearing that sentiment since the election, and Mona ElNagger, a partner at Valo Ventures, echoed it once again this week. “Microsoft and Apple were founded in the mid 1970s, which was a time of severe recession and stagflation. Amazon started at the tail end of a big recession in the early 1990s,” ElNagger reminded the audience at the Economics of Climate Tech panel, which she moderated. “Companies that survive and actually thrive in such periods share a common thread of resilience.”
As that panel wrapped up, things got existential once more as Chi’s talk moved from describing his investment thesis to the moment at large. “This time period in history is going to bring us tragedy after tragedy, and it’s really that moment that we’re going to understand the deep underlying structure of half of the world that we’ve built, and also the character of who we are,” Chi told the audience. It was unclear whether we were even talking about climate tech anymore. Chi continued, “It’s in that time period that we are going to step up and become whatever we are meant to be or not at all.”
The crowd sat there, a little stunned. Were we, in this very moment, becoming who we were meant to be? I took a bite of my free sushi as the networking and hobnobbing began.