As an expert engineer in energy transition, I understand the critical role that venture capital firms play in driving innovation and fostering sustainable development in the fight against climate change. In recent years, there has been a growing trend of venture capitalists investing in projects that incentivize degrowth, which is a critical element of transitioning to a more sustainable and equitable economy.
Degrowth is the idea that society must prioritize reducing consumption and production to achieve a sustainable future. This concept is essential because it recognizes that our current economic model is not viable in the long term and that we must embrace radical changes to avoid catastrophic climate change.
Venture capital firms have a critical role to play in supporting degrowth initiatives. These firms can provide funding and support for start-ups and emerging companies that focus on sustainable business models, technologies, and services. For example, venture capital investments can support renewable energy projects, such as wind and solar power, which can provide clean and sustainable energy sources for communities worldwide.
Moreover, venture capitalists can also support sustainable transportation and mobility projects that reduce carbon emissions. For example, venture capital investments in electric vehicle infrastructure and transportation services can incentivize a shift away from fossil fuels and towards cleaner, more sustainable modes of transportation.
Finally, venture capital investments can also support sustainable agriculture projects that reduce waste and pollution while also promoting local food systems. These projects can help create a more resilient food system that is less reliant on global supply chains and vulnerable to climate change.
Below we mention some of the start-ups with the longest history in this business model paradigm shift.
- ShareWaste: This Australian startup connects people who have organic waste with neighbors who have compost. The idea behind the platform is to encourage home composting and reduce the amount of waste that ends up in landfills.
- Refurbed: This Austrian startup sells refurbished and reconditioned electronics online. The idea is to extend the lifespan of electronics and reduce the need to produce new products.
- Too Good To Go: This Danish startup offers an app that connects users with restaurants and stores that have surplus food that would otherwise go to waste. Users can purchase these foods at a reduced price and thus reduce the amount of food that is thrown away.
- Loop: This American startup offers an online platform for selling daily consumer products in reusable containers. The idea is to reduce the amount of single-use plastic packaging that ends up in landfills.
- Olio: This British startup also focuses on reducing food waste by connecting people who have surplus food with neighbors who want it. The app is used to share food and prevent it from being wasted.
However, there are not many energy companies that rely on degrowth models, as the concept of degrowth focuses on reducing overall production and consumption. However, there are some companies that are working on solutions that promote energy efficiency and the reduction of energy consumption, which can be considered a form of degrowth. Here I present some examples:
- Opower: This American company uses data analysis technology to help customers reduce their energy consumption. It provides personalized information to customers about their energy use and suggests changes they can make to reduce their carbon footprint.
- Gridmates: This American company has developed an online platform that allows people to share their surplus energy with those who need it. This promotes energy efficiency by avoiding energy waste and fosters solidarity between communities.
- Energy Vault: This Swiss company has developed an energy storage technology that uses stacked concrete blocks to store energy generated by renewable sources, such as solar and wind power. This can help reduce reliance on fossil fuels for power generation.
In conclusion, venture capital firms have a critical role to play in supporting degrowth initiatives that can help combat climate change. By investing in sustainable business models, technologies, and services, venture capitalists can drive innovation and support the transition towards a more sustainable and equitable economy. It is essential for investors to recognize that degrowth is not only necessary but also offers significant economic opportunities for those who embrace it. The time for action is now, and we must work together to ensure a sustainable and prosperous future for all.
PhD. Federico Aguirre. Professor at U.N.R.C. Argentina.