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“On a more level playing field, clean energy will prove its superiority.”

Many climate advocates are revolting against Senator Joe Manchin’s permitting deal over its oil and gas industry giveaways. But not all of them. Among the climate wonk set, there’s a growing chorus that supports the bill and says the fossil fuel language is a pill worth swallowing.
The almost-retired West Virginia senator’s bill — which was voted out of committee yesterday with a bipartisan 15-4 vote — would grease the skids for approving new transmission and renewables projects in plenty of ways. It would also strengthen fossil fuel leasing mandates and, in the activists’ view, hinder efforts to wind down permitting for liquified natural gas export terminals.
Little analysis of this specific bill’s climate impacts has been made public, and any modeling would be highly variable. Yet clearly lawmakers have seen at least some research: During the hearing on the permitting bill, Democratic Senator Martin Heinrich claimed the oil and gas provisions would “likely increase emissions on a scale of less than” 160 million tons of CO2, while other parts of the bill would reduce emissions by 2 to 3 billion tons of CO2, he said.
Academics and consultants I spoke with agree with Heinrich’s take: The positive climate impacts of the pieces hastening permits crucial to the energy transition may easily outweigh the carbon dioxide and methane emissions impacts of the fossil fuel language. As I began to unpack the various points of view and the disparity between climate wonks and the many activists opposed to the bill, it became clear to me that the fissures between these two camps speak to a broad challenge facing the energy transition. Bipartisan compromise on climate change through the U.S. government’s system almost by necessity requires capitulation to fossil fuels, which violates the principles of many grassroots activists.
“Truth is, the U.S. is not ready to talk about seriously scaling down oil and gas production,” Noah Gordon, acting co-director for sustainability, climate, and geopolitics at the Carnegie Endowment for World Peace, told me via email. (Gordon said he “supports the bill despite reservations.”)
“The only way to make that conversation possible is to massively boost clean energy and change the balance of political power,” Gordon said. “In 2024, this is feasible only through all-energy-is-welcome bills like Manchin-Barrasso. On a more level playing field, clean energy will prove its superiority.”
Take the language on LNG. Yes, it would alter the course of an effort led by youth climate campaigners under the Biden administration to curtail approvals for pending LNG export terminals, which could have clear downsides for the communities surrounding these projects. But on a global scale, as my colleague Matthew Zeitlin has written, the climate impacts of American LNG really depend on where it’s going and what it’s used for. To make matters slightly more opaque, some environmentalists who claim the climate impacts of LNG exports would be catastrophic are referencing science that has yet to be peer-reviewed and is still disputed, as Zeitlin noted.
Or take the bill’s language on coal. If enacted, the legislation would require the government to adhere to strict deadlines on processing applications to lease coal — but it wouldn’t force the government to decide one way or the other on those applications. According to Jenny Harbine, an attorney for Earthjustice (which is opposed to the permitting bill), this language would not impact the Biden administration’s efforts to wind down coal leasing in the Powder River Basin, the nation’s most active coal mining region.
“This bill doesn’t appear to change that decision,” Harbine told me yesterday. “It appears to leave largely discretion in the hands of the Secretary to not lease.”
All of this is not to say that the climate wonks who support the bill enjoy the fossil fuel language — they’re quite sympathetic to the opposition’s rationale. But they also don’t think it’ll be the end of the world; meanwhile, the current permitting regime is just not cutting it. Sources pointed me to a study from the consultancy Evolved Energy Research, which found that about half the potential emissions reductions from the Inflation Reduction Act are essentially dependent on faster deployment and siting of renewables and interregional transmission.
“In terms of overall leverage on climate, the growth of domestic clean sources enabled by transmission really outweighs everything else,” Rob Gramlich, president of Grid Strategies LLC, told me. “All of it is additional, whereas the fossil supply here is displacing fossil supply elsewhere, so a one-for-one deal … is a net carbon benefit because of that dynamic.”
Princeton professor and energy systems expert Jesse Jenkins (who is also a co-host of Heatmap’s Shift Key podcast) told me the same. Curbing oil and gas leasing on federal land would also not necessarily lower supply, as such drilling may just move to non-federal lands or other countries. Without addressing demand, there’s always the risk that leasing restrictions fail to substantially lower CO2 emissions. Jenkins nodded to a Resources for the Future study that quantified emissions from oil and gas leasing and found even a ban on new oil and gas leasing “would not on its own achieve net-zero emissions from oil and gas on federal lands by 2040,” stating much more action would be necessary — such as carbon sequestration, modifications to existing leases, and other measures.
“We can’t choke off the world’s supply for fossil fuels, but we can beat it with cheaper, better clean energy technologies,” he said.
Ultimately, the Manchin permitting deal — which may or may not become law any time soon — could reduce U.S. greenhouse gas emissions over time, if the studies and charts are to be believed. That would be a great thing for the planet. But that’s not really why so many climate activists are against the bill. These people see the end of the petroleum sector as the paramount goal and refuse to settle for legislation that enshrines future fossil fuel production into law, even if the benefits to renewable energy deployment may be greater.
There are key differences between the kind of deal renewable energy developers and decarbonization-focused academics would enjoy and legislation that activists will accept, Tony Dutzik, associate director and senior policy analyst with the think tank Frontier Group, explained to me. Dutzik told me he works with environmental non-profits who are against the bill. “I’ve known so many people over the years, and the thing they wanted to do is to be on the front end of the clean energy transition, and dedicate their lives to that for very good reasons … But if you are a trade group or developer that is working on clean energy, that piece of the puzzle is your focus.”
Dutzik compared the IRA and the permitting legislation to longstanding environmental statutes like the Clean Air Act, which acted as a boundary on the market to reduce pollution. “Capitalism mobilizes an incredible amount of resources and can move incredibly quickly when it is given the incentives to do so,” he said, “but the thing that it hasn’t done is to set that boundary or that standard.”
It’s clear to me from my conversations with climate activists that there’s a lingering frustration about the American pro-market approach to climate. The IRA, for example, did very little to penalize fossil fuel production or greenhouse gas emissions at all — it took an all-carrot, no-stick approach to industrial policy. Something resembling a carbon tax is nowhere close to happening, unless you count the nascent bid to enact a carbon border adjustment mechanism. And regulatory efforts to clamp down on greenhouse gasses are getting stymied by courts.
“Essentially, what you wind up with — and this will be the core of the disagreement,” Dutzik said, “is you wind up with more of everything. And if you wind up with more of everything, that may get you more clean energy, but it doesn’t necessarily solve the climate problem, and it certainly doesn’t solve the problems that are experienced by people who live near fossil fuel production, transportation and consumption. And it doesn’t necessarily get at the relationship between fossil fuels and the natural world.”
Jenkins noted similar divisions occurred with the IRA, which had its own capitulations to fossil fuel.
“There’s a chunk of the climate campaigning groups [who believes] we win by raising the cost of permitting and transactions, and legal suits, and choking off supplies of fossil fuels. There’s another group of people — the people who helped get the IRA passed — who believe we win by displacing fossil fuels.”
In Jenkins’ view, the old way of curtailing fossil energy by choking off supplies may not really apply to a post-IRA world. Before the IRA, it made more sense to invest in “dirty energy” than clean energy, when now “the opposite is true.” This “tips the calculus of how you view this process from a climate perspective.” And it may be better to compromise and quicken new renewable energy deployment in the hopes it further diminishes interest in fossil fuel leasing.
“This is at the heart of it. I don’t think there’s any way we can create a legal regime that doesn’t apply something like parity across [all] different kinds of energy infrastructure,” Jenkins said. “You’re not going to get that in a bipartisan bill.”
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Reflections on a rock ’n’ roll road trip.
I expected touring the whole country with my rock band could change me. I didn’t think it would shatter my understanding of the U.S. energy transition.
First, a quick word about myself for any Heatmap readers who may not know: Along with delivering you scoop after scoop, I’ve been writing and playing music as the front person of a band called Ekko Astral. Last fall, we had the privilege of touring the entire U.S. opening for two of my favorite rock acts, PUP and Jeff Rosenstock. The tour itself was immensely successful, with packed-out rooms full of thousands of screaming fans. Getting to play those stages was the culmination of a dream I’d had since playing guitar at age 11 at the local coffeeshop open-mic. It was awesome.
What I hadn’t considered about this cross-country rock n’ roll tour, however, was that it would take me through the fields of wind turbines and solar projects being built across the country that I’d reported on but mostly hadn’t seen in person.
Driving across the country with my band, I saw solar and wind projects in Wisconsin, Kansas, Arizona, and Idaho. One drive from Austin, Texas to Rozwell, New Mexico, sent me through a dizzying maze of wind farms in a western portion of the Lone Star State that surrounded my vehicle on all sides with spinning blades and transmission lines — and fracking rigs, because it was Texas. It felt like some sort of twisted, magnificent energy wonk video game level.
I also drove through myriad pockets of rural America where companies have been fighting tooth-and-nail to build utility-scale renewable energy and sometimes losing to hardened opposition. I drove through open fields and farmland in the Midwest and the Great Plains, for example, including places where building solar or wind is banned outright. I drove straight through the part of central Idaho where Lava Ridge, once the largest wind farm in the country, would have been built this year if not for Donald Trump. Sure, there were counties where I could understand wanting to avoid solar farms on farmland, or wind turbines cluttering more picturesque vistas. But I can’t tell you how many times I looked out the window of my vehicle and thought, Why isn’t this a solar farm? There’s no one here!
At the same time, I was trapped in my own form of climate hypocrisy, touring the country in a gas-powered Ford Transit van. I kept longing for us to have the capacity to tour by electric van. But setting aside the limited availability of electric vans for touring purposes, the sheer logistical requirements of going electric would be difficult for any touring band. Music venues do not always have reliable charging access, and calculating when and how to charge the van on our tour probably would’ve made already time-limited logistics impossible. Sure, Ed Sheeran might be able to do it, but not an up-and-coming band on a budget.
To make matters more frustrating, it turns out band merch isn’t great for the planet. Yes, you can choose greener materials for T-shirts and record packaging, but vinyl records are produced with petrochemicals. Cleaner alternatives, known as biovinyl, have been tried but can have serious quality issues (see: the Billie Eilish experiment). Then add in the shipping required to get multiple rush orders of shirts dropped in random spots across the country and, well, you’re looking at quite a lot of potential carbon emissions.
One day, late in the tour, I walked off stage in Salt Lake City and opened my phone to a text from a source notifying me that Esmeralda 7 — the largest solar project in the U.S. — had been killed. I wrote the piece, then went back to selling more copies of Ekko Astral songs printed onto petroleum discs.
All of this made me feel angry and helpless. By the time the tour ended I wasn’t quite a doomer, but I was tired, and my views on climate action had changed in three important ways.
First, we need to rethink what kind of “permitting reform” is necessary for the energy transition. After driving through so many open areas with so little economic development and no new renewable energy generation, I no longer think that changing federal environmental laws will make much of a difference, except to make more polluting forms of energy more economical. The permitting issues delaying projects in these places are, as I have reported for Heatmap, sometimes caused by people on social media who are manipulating a decline in civil engagement and participation in municipal government to block energy projects they personally dislike, even when the developments enjoy broad community support.
This is not a federal permitting problem, it’s a local one. But national politicians could help mitigate this issue if they really wanted to. New gas pipelines need approval from just one entity — the Federal Energy Regulatory Commission — but transmission lines have to cross all the Ts with every state agency along their path. Lawmakers trying to rectify that problem should also turn their attention to the local moratoria and restrictive ordinances holding up what Heatmap Pro data shows is more than a thousand renewable energy and battery storage projects across the country. I do not know what the specific policy solution is here, but we need policy experts to start coming up with ideas.
Second, I believe that artists need to practice what we preach.
In the wake of my tour, I’ve found myself daydreaming about what a true climate-friendly tour would look like, and have spoken with fellow musicians — and climate wonks — about how to make it happen. Maybe one day I will commandeer an electric vehicle and bring only enough gear to play music off the battery in the car. Or perhaps I will put on an outdoor concert run entirely on renewable-powered generators, as the band Massive Attack did earlier this year, claiming it slashed most of the emissions from their performance. In any case, these forms of radical thinking will be crucial because culture is upstream of politics, and art is the soundtrack that defines action.
Lastly, I think more of us need to go out and see the rest of our world, because it’s frustrating it took me a rock n’ roll tour to see what was right there this whole time: the frustratingly slow pace of progress.
I’m used to hearing from all sides that renewable energy deployment in the U.S. is moving at a rapid clip, even in spite of Trump’s rise to power. Nearly half of all new power coming online this year is going to be solar and wind. Battery manufacturing investments continue to be a bright spot. Carbon emissions are going down, albeit slowly. All of this is nice to hear, but I just traveled the whole country and it didn’t feel like I was seeing or feeling the transition that is supposedly underway.
This country has a lot of potential. I want to see us go so much further towards a greener electric grid, transportation system, and arts community.
Because you never know what’s going to take off.
Not even 12 months of unceasingly bleak climate news could keep climate tech founders and funders from getting involved in some seriously sci-fi sounding ideas. While the first half of the year may have been defined by a general retrenchment, the great thing about about early-stage venture capital is that it very much still allows for — nay, encourages — the consideration of technologies so far beyond the mainstream that their viability is almost entirely untethered from current political sentiment.
Below are seven of the most fantastical technologies investors took a bet on this year, with almost all announced in just the past quarter alone. In an undeniably rough year for the sector, perhaps VCs are now ready to let their imaginations — and pocketbooks — run just a little bit wilder.
In November, the startup Terranova emerged from stealth with $7 million in seed funding and a plan to lift low-lying areas out of flood zones by deploying robots to inject a wood-based slurry deep underground, thereby raising the land above sea level. The lead investors were Outlander and Congruent Ventures.
“Terranova’s mission is nothing less than to terraform the earth and usher in a new era of resilience and societal abundance,” Terranova’s 24-year old CEO Laurence Allen said in a press release. He cofounded the company with his father, Trip Allen, who lives in the flood-prone Bay Area city of San Rafael.
The company says that its system, which consists of three robots and one “mothership,” can lift one acre by a foot per day, making it more cost-effective than other options for defending against climate change-driven flood risk, such as building a levee or a sea wall. Already the startup has quoted San Rafael $92 million to lift about 240 acres of land about four feet.
Not one, but two space-based solar companies made headlines this year. Just this month, Overview Energy emerged from stealth with plans to deploy satellites that beam energy via lasers directly to Earth, targeting preexisting utility-scale solar farms. The company has already raised $20 million in seed funding in a round led by Lowercarbon Capital, Prime Movers Lab, and Engine Ventures, and is now raising a Series A expected to close next spring.
Back in April, another space-based solar startup called Aetherflux raised a $50 million Series A led by Index Ventures and Interlagos. That funding will support the startup’s first launch, targeted for next year, which will deploy a constellation of satellites into low-earth orbit — a far lower altitude than Overview is targeting. These satellites will also use lasers to transmit solar energy to ground stations on Earth, where the power will be stored in batteries for later use.
If these companies can prove that their tech actually works in space, they have the potential to turn solar into an always available, 24/7 resource. That’s not going to happen in the next few years, though. Overview’s CEO Marce Berte told me that the company is aiming to put megawatts of power on the grid by 2030 and gigawatts by the mid-2030s, with the ultimate goal of building a system that can deliver the equivalent of 10% to 20% of global electricity use by 2050.
Did you know that low-frequency sound waves can extinguish a fire? It’s a relatively well-understood phenomenon, but now one company, Sonic Fire Tech, has raised $3.5 million to turn this hypothetical concept into a commercial firefighting tool. With a seed round co-led by Khosla Ventures, Third Sphere, and AirAngels, the startup hopes to launch pilots with homeowners, utilities, and firefighting agencies at the beginning of next year.
As Scientific American explained, the system emits low-frequency sound waves below the threshold of human hearing, which prevent and extinguish flames by displacing oxygen away from the fuel. This deprives a potential or existing fire of the air it needs to sustain combustion. The system can channel the soundwaves through ducts atop a building’s roof and beneath its eaves, or be installed on utility equipment. There’s even the potential for a “sonic backpack,” which would offer portable protection for firefighters.
The startup’s goal is to produce 500 units by the second quarter of next year, and it’s now seeking public-sector grant funding as well as partnerships with insurance companies for its novel “infrasound-based fire suppression.”
My colleague Robinson Meyer broke the news in October that an Israeli geoengineering startup called Stardust Solutions had raised a $60 million round led by Lowercarbon Capital. The company aims to develop tech that would enable solar radiation management — an as-of-now hypothetical method of cooling the planet by injecting aerosols into the stratosphere to reflect sunlight away from Earth — by the end of the decade.
The tech is controversial, however. Many experts believe that solar radiation management systems, if they’re developed at all, should be built by governments after much public deliberation. Stardust, by contrast, is a for-profit company seeking patent protection for its proprietary sunlight-reflecting particle. While the company says that the particle meets certain standards for safety and reflectivity, it has not disclosed what those standards are or anything about its composition.
The company’s CEO, Yanai Yedvab, said that Stardust is farther along than any other research efforts, public or private. And while some dispute the viability of Stardust’s proprietary particle, the fact that the company received a vote of confidence from a prominent climate tech VC indicates that this tech is entering the mainstream. As Rob put it, “Stardust may not play the Prometheus here and bring this particular capability into humanity’s hands. But I have never been so certain that someone will try in our lifetimes.”
Though climate tech investors have poured millions into the long-held dream of fusion energy, we’re likely still a long ways away from connecting a commercial reactor to the grid. But one startup, Maritime Fusion, is already looking to put fusion reactors on ships. The company raised a $4.5 million seed round last month led by the transportation firm Trucks VC to do just that.
The startup is developing a low power-density tokamak reactor that requires less power and less uptime than grid-connected power systems. According to TechCrunch, the startup projects that its first reactor will be up and running by 2032 and will cost about $1.1 billion to build, a far lower price than reactors on land will likely command. Another potential advantage is that at sea, fusion won’t have to compete with low-cost solar and wind resources, but rather more costly green shipping fuels such as ammonia and hydrogen.
"Breakeven fusion is on the horizon, but the grid may not be the first place fusion achieves commercial success," said Maritime Fusion’s CEO Justin Cohen in a press release.
Even with the rapid rise in grid-scale batteries, pumped storage hydropower still leads the world in total energy storage capacity. But traditional pumped hydro is costly to build and only feasible in specific geographies. One startup, Sizeable Energy, thinks it can overcome these constraints by building pumped hydro out at sea, raising $8 million in a round led by Playground Global to do so.
Traditional pumped-hydro systems store energy by using excess electricity to pump water into an elevated reservoir, then releasing it downhill through turbines when demand rises. Sizeable’s concept is the same, just offshore: One reservoir floats on the water’s surface, while the other — connected by a pipe and turbines — sits on the seafloor. When power is plentiful, brine is pumped into the upper reservoir; when it’s scarce, the brine gets released. And because that brine is heavier than the surrounding seawater, it naturally flows downwards to spin turbines.
Sizable is now working to deploy its pilot plant in Italy, with the goal of installing commercial projects at a variety of sites around the world next year.
This one’s a bit of a bonus. Technically Deep Fission, a startup planning to build tiny fission reactors in underground boreholes, raised its pre-seed round last year, But this year it went public via a curious SPAC merger on the lesser-known stock exchange OTCQB, raising $30 million in the process.
The idea is that building a reactor a mile underground will save costs and enhance safety, as it negates the need for the large pressure vessels and containment structures that are typically responsible for holding a reactor in place and preventing radioactive leaks. Instead, the company says that the surrounding rock will serve as a natural barrier and containment vessel.
But as Latitude Media pointed out, some are questioning whether the recent raise will be enough for the company to build what’s sure to be an expensive pilot by next July — as it aims to do — and to deploy reactors at the three project sites that it’s already announced. Next year certainly promises to be a reckoning for the hitherto unconsidered fortunes of the underground small modular reactor industry.
Microsoft dominated this year.
It’s been a quiet year for carbon dioxide removal, the nascent industry trying to lower the concentration of carbon already trapped in the atmosphere.
After a stretch as the hottest thing in climate tech, the CDR hype cycle has died down. 2025 saw fewer investments and fewer big projects or new companies announced.
This story isn’t immediately apparent if you look at the sales data for carbon removal credits, which paints 2025 as a year of breakout growth. CDR companies sold nearly 30 million tons of carbon removal, according to the leading industry database, CDR.fyi — more than three times the amount sold in 2024. But that topline number hides a more troubling reality — about 90% of those credits were bought by a single company: Microsoft.
If you exclude Microsoft, the total volume of carbon removal purchased this year actually declined by about 100,000 tons. This buyer concentration is the continuation of a trend CDR.fyi observed in its 2024 Year In Review report, although non-Microsoft sales had grown a bit that year compared to 2023.
Trump’s crusade against climate action has likely played a role in the market stasis of this year. Under the Biden administration, federal investment in carbon removal research, development, and deployment grew to new heights. Biden’s Securities and Exchange Commission was also getting ready to require large companies to disclose their greenhouse gas emissions and climate targets, a move that many expected to increase demand for carbon credits. But Trump’s SEC scrapped the rule, and his agency heads have canceled most of the planned investments. (At the time of publication, the two direct air capture projects that Biden’s Department of Energy selected to receive up to $1.2 billion have not yet had their contracts officially terminated, despite both showing up on a leaked list of DOE grant cancellations in October.)
Trump’s overall posture on climate change reduced pressure on companies to act, which probably contributed to there being fewer new buyers entering the carbon removal market, Robert Hoglund, a carbon removal advisor who co-founded CDR.fyi, told me. “I heard several companies say that, yeah, we wouldn't have been able to do this commitment this year. We're glad that we made it several years ago,” he told me.
Kyle Harrison, a carbon markets analyst at BloombergNEF, told me he didn’t view Microsoft’s dominance in the market as a bad sign. In the early days of corporate wind and solar energy contracts, he said, Microsoft, Google, and Amazon were the only ones signing deals, which raised similar questions about the sustainability of the market. “But what it did is it created a blueprint for how you sign these deals and make these nascent technologies more financeable, and then it brings down the cost, and then all of a sudden, you start to get a second generation of companies that start to sign these deals.”
Harrison expects the market to see slower growth in the coming years until either carbon removal companies are able to bring down costs or a more reliable regulatory signal puts pressure on buyers.
Governments in Europe and the United Kingdom introduced a few weak-ish signals this year. The European Union continued to advance a government certification program for carbon removal and expects to finalize methodologies for several CDR methods in 2026. That government stamp of approval may give potential buyers more confidence in the market.
The EU also announced plans to set up a carbon removal “buyers’ club” next year to spur more demand for CDR by pooling and coordinating procurement, although the proposal is light on detail. There were similar developments in the United Kingdom, which announced a new “contract for differences” policy through which the government would finance early-stage direct air capture and bioenergy with carbon capture projects.
A stronger signal, though, could eventually come from places with mandatory emissions cap and trade policies, such as California, Japan, China, the European Union, or the United Kingdom. California already allows companies to use carbon removal credits for compliance with its cap and invest program. The U.K. plans to begin integrating CDR into its scheme in 2029, and the EU and Japan are considering when and how to do the same.
Giana Amador, the executive director of the U.S.-based Carbon Removal Alliance, told me these demand pulls were extremely important. “It tells investors, if you invest in this today, in 10 years, companies will be able to access those markets,” she said.
At the same time, carbon removal companies are not going to be competitive in any of these markets until carbon trades at a substantially higher price, or until companies can make carbon removal less expensive. “We need to both figure out how we can drive down the cost of carbon removal and how to make these carbon removal solutions more effective, and really kind of hone the technology. Those are what is going to unlock demand in the future,” she said.
There’s certainly some progress being made on that front. This year saw more real-world deployments and field tests. Whereas a few years ago, the state of knowledge about various carbon removal methods was based on academic studies of modeling exercises or lab experiments, now there’s starting to be a lot more real-world data. “For me, that is the most important thing that we have seen — continued learning,” Hoglund said.
There’s also been a lot more international interest in the sector. “It feels like there’s this global competition building about what country will be the leader in the industry,” Ben Rubin, the executive director of the Carbon Business Council, told me.
There’s another somewhat deceptive trend in the year’s carbon removal data: The market also appeared to be highly concentrated within one carbon removal method — 75% of Microsoft’s purchases, and 70% of the total sales tracked by CDR.fyi, were credits for bioenergy with carbon capture, where biomass is burned for energy and the resulting emissions are captured and stored. Despite making up the largest volume of credits, however, these were actually just a rare few deals. “It’s the least common method,” Hoglund said.
Companies reported delivering about 450,000 tons of carbon removal this year, according to CDR.fyi’s data, bringing the cumulative total to over 1 million tons to date. Some 80% of the total came from biochar projects, but the remaining deliveries run the gamut of carbon removal methods, including ocean-based techniques and enhanced rock weathering.
Amador predicted that in the near-term, we may see increased buying from the tech sector, as the growth of artificial intelligence and power-hungry data centers sets those companies’ further back on their climate commitments. She’s also optimistic about a growing trend of exploring “industrial integrations” — basically incorporating carbon removal into existing industrial processes such as municipal waste management, agricultural operations, wastewater treatment, mining, and pulp and paper factories. “I think that's something that we'll see a spotlight on next year,” she said.
Another place that may help unlock demand is the Science Based Targets initiative, a nonprofit that develops voluntary standards for corporate climate action. The group has been in the process of revising its Net-Zero Standard, which will give companies more direction about what role carbon removal should play in their sustainability strategies.
The question is whether any of these policy developments will come soon enough or be significant enough to sustain this capital-intensive, immature industry long enough for it to prove its utility. Investment in the industry has been predicated on the idea that demand for carbon removal will grow, Hoglund told me. If growth continues at the pace we saw this year, it’s going to get a lot harder for startups to raise their series B or C.
“When you can't raise that, and you haven't sold enough to keep yourself afloat, then you go out of business,” he said. “I would expect quite a few companies to go out of business in 2026.”
Hoglund was quick to qualify his dire prediction, however, adding that these were normal growing pains for any industry and shouldn’t be viewed as a sign of failure. “It could be interpreted that way, and the vibe may shift, especially if you see a lot of the prolific companies come down,” he said. “But it’s natural. I think that’s something we should be prepared for and not panic about.”