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rice field in Asia
May 13, 2024 | ImpactAlpha

Greetings Agents of Impact! 🔌 On this week’s Plugged In: Better, cheaper and faster climate impact. Climate volatility is here. Stonly Blue of

Today’s brief

Featured: LP / GP

Why VC investors need a 1.5 degree Celsius goal for responsible tech. Artificial intelligence, quantum computing, robotics and other disruptive technologies are transforming labor productivity, human-machine and human-nature relations, and the social fabric. To deliver long-term value for themselves and society, tech innovators and investors need a North Star akin to the globally agreed goal of keeping global warming to 1.5 degrees Celsius, argue Paul Fehlinger of Project Liberty Institute and Johannes Lenhard of Venture ESG. “Venture capitalists and limited partners need to align on processes, incentives and alternative investment models that go beyond the high-risk ‘move fast and break things’ mentality of the 2010s,” the authors write in a guest post in ImpactAlpha. The 1.5 degrees Celsius threshold for global warming is the result of four decades of research by the UN Intergovernmental Panel on Climate Change. This North Star metric serves as a guide that uses science-based targets, incentives for climate-positive innovation, and penalties for negative externalities.

Dealflow: Agrifood Investing

Rize scores $14 million to reduce emissions and boost livelihoods for rice farmers. Rice is a staple crop for more than half of the global population. Demand is projected to double by 2050. But traditional rice cultivation practices, such as flooding fields, consume large amounts of water and release methane gasses. “Mitigating the environmental impact of rice cultivation is essential in the fight against climate change,” said Carmichael Roberts of Breakthrough Energy Ventures. Breakthrough, along with Wavemaker Impact, Temasek and Temasek’s GenZero, launched Rize last year to reduce the environmental footprint of rice cultivation. The Singapore-based startup helps small rice farmers implement sustainable farming practices, while lowering costs and increasing crop yields. “We are not just aiming to cut down 100 million tons of carbon emissions, we are also enhancing the economic stability of farmers, ensuring that improved farmer livelihoods and reduced emissions go hand-in-hand,” said Rize’s CEO Dhruv Sawhney

Signals: Climate Finance

With more than $700 billion for fossil fuels, global banks retreat on climate pledges. “Energy pragmatism” is the new euphemism for continued investment in fossil fuels. Emboldened by high oil prices, producers are orchestrating megamergers and doubling down on oil and gas. Their enablers: global bankers. The world’s largest banks provided some $706 billion in financing for oil, gas and coal last year, even as the planet experienced its warmest 12 months since record-keeping began in 1850. JPMorgan Chase boosted its fossil fuel financing by $2 billion, to just under $41 billion for the year, making it once again the largest fossil fuel funder, according to a new report, “Banking on Climate Chaos.” “Major banks have squandered yet another year to take decisive and ambitious action on climate,” says Sierra Club’s Adele Shraiman, an author of the report released today. 

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