With the emergence of ever-more-powerful large language models and AI, startups have become primary actors in the global transformation of society, economies, and geopolitics. But small, sometimes pre-revenue companies, aren’t simply having their day in the sun. Startups will gain importance over the coming years as the world tackles the climate crisis as well as what some are calling “polycrisis.”

Climate change is a prime example. At the beginning of June, newly appointed Executive Secretary of the United Nations (UN) Framework Convention on Climate Change, Simon Stiell, spoke on the upcoming challenge of limiting global warming to 1.5 degrees Celsius, saying that “the second half of humanity’s climate journey will be even harder and climate action will need to move at a much, much faster rate…”

UN Secretary-General Guterres previously cast humanity on a “highway to climate hell.”

Both indicate that today’s tools and technology won’t manage the climate crisis on their own. That said, the last few years have demonstrated there is potential to get off the “highway to hell” via bold start-ups that leverage technology and innovation to find completely new ways of doing things, moving fast and safely.

NURTURE STARTUPS TO POWER SOLUTIONS TO THE CLIMATE CRISIS

Electric vehicle players such as Tesla have revolutionized the mobility market by introducing high-performance, long-range electric cars while making them attractive. Startups such as Bird and Lime have changed how we move in cities through electric scooter-sharing services, providing a convenient and eco-friendly alternative to metro, bus, and car.

Swedish company Einride has brought electric mobility to the freight sector, helping decarbonize road freight by integrating electric and autonomous vehicles. Startup ventures such as Rivian’s development of advanced battery technologies have significantly extended the range and durability of EVs by addressing a key pain point of potential buyers.

Startups have also been pivotal in turning solar energy from a futuristic concept to an alternative energy source for sustainable and cost-effective power supply. Companies such as Nexamp, Enpal, and EnergyVision have revolutionized the solar industry by making solar energy accessible to all through community solar programs, rent-to-own models, and innovative financing options, making solar power accessible to homeowners and businesses.

However, as Guterres has said, we will need to move much faster. So, how do we do that practically?

We need more new startups that address global challenges. We must raise the visibility of urgent global challenges and encourage entrepreneurial solutions in lieu of “easier” business models such as e-commerce.

We need more patient capital from investors who understand the technology. Deep tech founders especially struggle to find investors who grasp their technology and have a long-term perspective. Rushing products to meet investor expectations can undermine their potential. Corporate VCs should invest more in early-stage and deep tech, as they are better equipped to understand the technology and allow adequate development time.

We need to identify promising startups and help them scale or fail faster. The World Economic Forum’s Innovator communities do this with the Technology Pioneer Community which identifies 100 promising early-stage startups annually, the Global Innovator Community which targets growth-stage startups, and the Unicorn Community which targets pre-IPO start-ups with a valuation of more than $1 billion.

SUSTAINABLE INNOVATION

Here are some other reasons why I believe startups will remain an important element in accelerating the fight against the climate crisis.

Wind energy is one of the renewables expected to help us drastically reduce our carbon emissions and meet some of the targets of UN Sustainable Development Goal 13 on climate change. Radia, a unicorn startup, plans to use rocket science to overcome one of the wind power industry’s biggest hurdles with a giant cargo plane, deploying larger blades that can run with less wind to previously inaccessible locations.

Solar energy helps reduce carbon emissions. The 2024 Technology Pioneer Cosmos Innovation uses AI to optimize solar cells further to get even more energy from the sun with each solar panel.

Carbon capture can achieve 14% of the global greenhouse gas emissions reductions needed by 2050 and is viewed as the only practical way to achieve deep decarbonization in the industrial sector. A 2024 Technology Pioneer Heirloom, offers carbon removal through direct air capture with an affordable and scalable technology; its target cost is $50 per ton once it reaches commercial scale.

Plastic recycling is one solution to the global pollution problem. Every year, 19-23 million tonnes of plastic waste leak into aquatic ecosystems, polluting lakes, rivers, and seas, the equivalent of 2,000 garbage trucks. Swiss Technology Pioneer DePoly developed a recycling process that converts all types of previously unrecyclable polyethylene terephthalate—a type of polyester—waste into raw materials without pre-sorting or pre-washing.

HVAC efficiency can mitigate consumption. Globally, heat accounts for nearly half of all energy consumption and 40% of energy-related carbon dioxide emissions. Global Innovator Brainbox AI specializes in AI-driven energy optimization in commercial buildings. Its autonomous solutions target heating, ventilation, and air conditioning systems across multiple sites, helping achieve net zero carbon emissions for buildings.

Fighting wildfires. According to the US Environmental Protection Agency, climate change has intensified wildfire season. Wildfires globally add around 5 to 8 billion tonnes of carbon dioxide (CO2) annually. U.S.-based Technology Pioneer Vibrant Planet digitizes land mapping and helps users—fire departments and government bureaus—better manage land and prepare for potential climate incidents like wildfires with AI. Stakeholders can test different treatments for land such as controlled fires or removing certain trees or vegetation to see their impact on land resilience.

The number of new founders providing scalable solutions for humanity’s biggest challenges such as the climate crisis gives rise to optimism. By highlighting these critical challenges and fostering patient capital, we can ensure innovation targets the areas that need it most. The relentless drive and ingenuity of startups will help us navigate the complexities of our polycrisis, transforming our world for the better and securing a sustainable future for generations to come.