When it comes to environmental and climate policies, the past can often be a reliable indicator of future efforts. US voters should closely examine President Joe Biden’s and former President Donald Trump’s track record in this area. Their contrasting approaches to climate change shape the environment and guide investors’ decisions around climate technology. The availability of capital is crucial for innovation, and without it, progress in this field could stagnate, much like a rain-deprived stream.

Downstream, climate impacts a cascade of other social issues, including health equity and higher risks to communities of color. It seems to be a kick-the-can down-the-road issue unless you live in an area with increased storms, rising temperatures, or water lines.

Three considerations sway investors’ decisions: favorable government policies, talent needed to innovate, and financial resources essential to bring to market technologies that can sustain businesses and, perhaps, the planet. As Elections 2024 close in, some private equity groups looking at climate-tech innovations and their limited partner investors will put a knee down and wait until the election smog clears. Whoever sits in the White House influences climate policies and, depending on your political viewpoint, the tempo of the planet’s ticking sustainability clock.

There is no need to guess the differences between the two candidates. Former President Trump and current President Biden have a track record of speaking to and engaging with environmental issues as clearly as night and day. Neither is shy about which way the nation should head — and, therefore, the planet. In many ways, it comes down to bread-and-butter issues — or as former President Clinton opined: “It’s the economy stupid.”

Trump’s Environmental Policy: Deregulation and Fossil Fuels – Focus on Conservation

Former President Donald Trump’s four-year term was marked by an emphasis on deregulation and support for the fossil fuel industry. He termed climate change a “hoax” and shelved reams of Federal regulations and treaties, arguing that they were damaging to business and the nation’s growth engine. His administration’s policies preferred traditional energy sources over renewable alternatives.

Among his first significant actions in office was announcing the United States withdrawal from the Paris Agreement, a landmark international accord aimed at reducing global greenhouse gas emissions. This move signaled a significant shift from the US government’s global climate commitments.

The Trump administration also implemented policies supporting oil and gas drilling, including opening up Federal lands and offshore areas for exploration. Environmental regulations were rolled back, with more than 100 ecological rules and regulations being reversed, weakened, or repealed. These actions aimed to boost domestic energy production, reduce dependence on foreign fuel sources and support US-based business interests. But he did not abandon the issue altogether.

Former President Trump emphasized the importance of job security and protecting the more than 10 million people who earn a livelihood in the petrochemical sector. That figure is based on a 2015 study by the American Petroleum Institute evaluating the economic weight of the oil and gas sector. However, the Biden plan does not put an end to the extraction of fossil fuels or impose a ban on fracking. The shift toward a cleaner energy economy suggests replacing them during a 25-year transition by supporting renewable energy sectors expected to generate new jobs.

The former president’s strong words questioning carbon footprint and climate change should not overshadow his significant legislative achievements.  President Trump took several actions to improve climate and the environment during his tenure. Trump committed the US to the Trillion Trees Initiative, aiming to conserve, restore, and grow trees worldwide, which help absorb carbon dioxide from the atmosphere. The Great American Outdoors Act was signed into law during his term in office, providing permanent funding for the Land and Water Conservation Fund by addressing the maintenance backlog in national parks, which helps preserve natural landscapes. He also signed the Save Our Seas Act into law to tackle marine debris and reduce ocean pollution.

These actions reflect a mix of environmental protection measures amidst a broader energy policy often criticized for deregulating fossil fuel industries Strong statements debunking climate change often overshadowed his positive impact.

The Trump administration made major efforts to conserve nature in the US; however, the impact of his policies on climate tech investment was profound. Deregulation and focus on fossil fuels created an uncertain environment for investors in clean and renewable energy and climate technologies. The lack of favorable climate policies shifted the risk/reward balance for investors to gauge the long-term viability of climate-tech ventures and the potential for return on investment. Knee down.

Biden’s Environmental Policy: Renewed Commitment and Green Investments

After the 2020 elections, President Joe Biden made environmental and climate issues a central focus of his administration. From his campaign promises to his actions in office, Biden demonstrates a solid commitment to addressing climate change and promoting clean energy technology. Among the hallmarks of Biden’s first term in office is the signing of the bipartisan Inflation Reduction Act (IRA) into law — the nation’s most significant investment in clean energy and climate action.

In contrast to his predecessor, the President’s first action upon taking office was rejoining the Paris Agreement, signaling a renewed commitment to international climate cooperation. He has set ambitious climate goals, including achieving net-zero greenhouse gas emissions by 2050 and transitioning the United States to a 100% clean energy economy. Biden outlined a comprehensive climate plan to accomplish these goals with a sizable investment in renewable energy, energy efficiency, and advanced climate technologies. As the Federal government prioritized climate tech innovation, states followed suit, offering consumers tax rebates to embrace alternative energy.

The IRA legislation created 170,606 new jobs in 44 states between August 16, 2022, and July 20, 2023. With bipartisan support, the pump primed with capital led to 272 new clean energy projects in small towns and big cities nationwide, totaling $278 billion in new investments.

The Biden administration’s American Jobs Plan, a cornerstone of his economic agenda, includes significant funding for clean energy infrastructure, electric vehicle deployment, and research and development in climate technologies. The White House plan allocated billions of dollars to developing and deploying renewable energy sources such as solar and wind power and investing in emerging technologies like carbon capture and storage.

Clear policy direction, coupled with substantial Federal funding and incentives, invited private equity to prioritize the sector and boosted investor confidence in the potential of climate technologies. The Biden administration’s focus on creating green jobs and promoting sustainable industries attracted significant attention from investors looking to capitalize on the growing demand for clean energy solutions.

Presidents’ Influence on the Winds of Change

Undoubtedly, Trump and Biden’s environmental policies impact climate tech investment. Under the Trump administration, the White House took dramatic action to advance legislation to support national parks, reforestation, and water-system upgrades. However, the climate tech sector faced severe headwinds due to the absence of supportive Federal policies, tipping into an uncertain regulatory environment. Given the administration’s apparent preference for fossil fuels and deregulation, private equity and venture capital took a watch-and-wait approach to renewable energy and climate technologies.

In comparison, the Biden administration policies boosted gave energy to the climate tech sector. Investors are more confident in the long-term prospects of climate technologies, leading to increased funding for renewable energy projects, electric vehicles, and other clean energy solutions.

The impact of these policy shifts can be seen in the growth of the climate tech sector. According to industry reports, venture capital funding for climate tech startups reached record levels in 2021, 2022 and 2023, influenced by the Biden administration’s supportive policies and the growing recognition of the urgent need to address climate change. Major corporations and financial institutions are also making significant commitments to sustainability, further fueling the sector’s growth.

Here is a quick summary contrasting the Trump and Biden climate approaches:

International Climate Agreements

Trump: Withdrew the United States from the Paris Agreement, arguing that it was unfair to American workers and industries. Deprioritized Federal interest in international climate cooperation, focusing on US economic priorities.

Biden: Rejoined the Paris Agreement on his first day in office, signaling an ongoing commitment to global climate action. The Biden administration participates in international climate summits and collaborates with other nations to meet global climate goals.

Does it Matter: To provide for a sustainable planet and open the facet for investment, White House support and Environment Protection Agency efforts send a message to VC and PE groups looking to balance risk with return on investment.

Regulatory Environment and Deregulation

Trump: Rolled back more than 100 environmental regulations, emphasizing deregulation to boost the fossil fuel industry. Encouraged drilling, mining, and oil and gas production expansion on Federal lands.

Biden: Implemented stricter environmental regulations to reduce greenhouse gas emissions and protect public lands. Introduced policies to transition to renewable energy sources and phase out fossil fuels, aiming for a net-zero emissions economy by 2050.

Does it Matter: Stronger environmental regulations reduce pollution and protect ecosystems, impacting public health outcomes and resource management. A clear regulatory framework provides certainty for investors in clean energy technologies.

Federal Investment in Clean Energy and Technology

Trump: Reduced Federal funding for renewable energy research and development, favoring fossil fuel investment. Prioritized short-term economic gains from traditional energy sectors over long-term sustainability.

Biden: Through initiatives like the American Jobs Plan, substantial funding has been allocated for renewable energy projects, electric vehicle infrastructure, and research and development in climate technologies. Promotes innovation in climate tech, aiming to create green jobs and modernize the energy infrastructure.

Does it Matter: Federal investment in clean energy influences economic growth, creates high-quality jobs, and positions the US within the global clean energy market. It also reduces dependence on fossil fuels, contributing to energy security and environmental sustainability.

Public Lands and Conservation

Trump Opened millions of acres of public lands for drilling, mining, and logging, reducing the size of several national monuments. Public lands are primarily resources for economic exploitation. But he also signed landmark legislation supporting national parks, water conservation, and tree planting to offset carbon concerns.

Biden: The Biden administration prioritized protecting and conserving public lands, reversing several of the Trump administration’s decisions to make them available for oil and gas drilling. It also prioritized biodiversity and promoting sustainable land use practices.

Does it Matter: Protecting public lands conserves natural habitats, which are crucial for biodiversity, recreation, and cultural heritage. It supports ecosystem services that benefit agriculture, water quality, and climate resilience.

Climate Change Mitigation and Adaptation

Trump: Downplayed the risks of climate change, focusing on the short-term economic benefits of fossil fuel production. Comprehensive climate mitigation and adaptation strategies are lacking, leaving many communities unprepared for climate impacts.

Biden: Developed comprehensive climate action plans, including plans for mitigation and adaptation. By prioritizing building climate-resilient infrastructure — construction and rehabilitation — policies support communities vulnerable to climate impacts.

Does it Matter: Effective climate change strategies are essential to protect communities from extreme weather events, rising sea levels, and other climate-related risks. Proactive measures raise costs initially but reduce long-term costs and enhance the economy by creating retraining programs and new, higher-paying employment.

*****

The stark differences between President Biden’s and President Trump’s approaches to climate change highlight the importance of climate policy in shaping the nation’s future. One candidate is seeking international cooperation, regulatory frameworks, Federal investment in clean energy, conservation of public lands, and comprehensive climate strategies to offer a path toward sustainability and resilience. The other speaks to the potential of more immediate economic benefit and a US-centric policy position.

According to the 2023 and 2024 Gallup Surveys, while US top issues suggest that bread-and-butter issues such as the economy, inflation, crime, health, and education are priority ballot concerns, those priorities shift with voters’ ages. Voters should care because these policies address climate change concerns and promote economic growth, public health, and environmental protection. Choosing between these two policy paths will have lasting implications for future generations.

The post Distinct Paths: How White House Climate Policies Shape Innovation and Our Future appeared first on Medika Life.

Today, wind power influences the global transition toward sustainable and renewable energy sources. Its status as a key renewable energy technology is expected to grow in importance in the coming years. The potential of wind power lies in its ability to generate clean electricity, reduce greenhouse gas emissions and contribute to energy diversification. Now, it is one of the fastest-growing infrastructures in history.  

One of the primary advantages of wind power is its abundance. Wind is a limitless resource, available in varying degrees across the globe. Harnessing this power efficiently through wind turbines can provide ample electricity alongside other renewable energy sources to meet the power needs of homes, businesses, and, possibly, entire communities.  Following the Paris Climate Accords, international climate governance was organized around three pillars: mitigation, adaptation, and implementation. While fossil fuels will not disappear entirely from the energy portfolio, the global goal is diversifying into other sources. Wind and solar power are the go-to possibilities.

Energy Diversification is Key to Meeting Paris Climate Mandates

Necessity is the mother of invention.  While the Dutch sought to prevent flooding, Israel used wind turbines to pump water to arid communities.  Then in the 1980s, the Start-Up Nation installed its first experimental wind turbines. Wind energy plays a growing role in Israel’s renewable energy mix as the nation seeks to reduce reliance on fossil fuels as part of its commitment to net zero emissions by 2050.

Enter First Airborne – Combining the Power of Drone Technology with Monitoring Performance

Now the country is championing bio-convergence – marshaling its peoples’ skills across the sciences – to explore how to make wind power an efficient energy resource.  Perhaps one of the leading players on the world measurement scene is First Airborne.  Headquartered in a small, picturesque village in Central Israel, First Airborne has developed a first-in-class patented wind measurement sensor called Windborne™. The 60-gram instrument, shaped like a small rocket ship, may transform wind farm monitoring and performance.

Attached to a moveable drone, Windborne, moving from wind farm section to section, enables short-staffed wind farm operators to obtain precision wind measurements across large-scale facilities at an unmatched scale. This validated level of accuracy and coverage has never been recorded before, making Windborne a possible game-changer for the renewable energy industry. It is the only robotic device in the wind-power industry to take direct measurements rather than provide a model measurement.

The potential of wind power to complement existing forms of clean energy is vast.  But how much wind is available, and what direction should the turbines face? As the renewable energy industry grows, accurate wind measurement data across large wind farms become vital to this growth sector.  Experts predict wind power offers the most significant future for energy. They suggest that even hydrogen will be fueled by wind farms. Green hydrogen is created by wind/solar power, and to meet our carbon-zero targets, green electricity must be used to produce hydrogen.

Wind Farms are Growing Exponentially

In speaking to Medika Life, First Airborne Founder and CEO Boaz Peled reflected on the possibilities of alternative energy sources to reduce dependence on fossil fuels.  “The growth of wind power today is between eight and 12% annually. In the offshore sector, it could reach as much as 30% annually, and with what’s expected off the Eastern Coast of the United States, that growth could exceed even that optimistic estimate. That’s like owning 10 airports and building another every year.”

While initial investment costs for wind farms are significant, the operational costs are relatively low compared to fossil fuel-based power plants. But profitability is razor thin.  Economics remains one of the key obstacles to making the shift away from fossil fuels.  As technology advances and economies of scale are achieved, the cost of producing wind energy will continue to decrease, making it economically viable and competitive.

Peled says, “Solar and wind energy have infinite and abundant potential. But among the challenges is determining how operators go from managing 300 to 3000 wind turbines and doing that efficiently to ensuring a sustainable business model.”

Wind (and solar) power faces challenges that must be addressed to realize its fullest potential. One of the primary challenges is that wind is intermittent. The other is that it’s a rapidly growing energy sector with a limited talent pool to operate and maintain wind farms.  Large companies in the wind sector are operating their portfolios on low margins. Every failure has a substantial financial and confidence-loss impact. Every additional hire has a significant effect on successful operations. Efficiency guides the effective utilization of staff and the potential for greater societal and operational outcomes.

Addressing these issues through improved technology, proper planning, and community engagement is crucial to maximizing the positive impact of wind energy while minimizing the pitfalls.

Israel – Innovation Perfected By Necessity

Like Israel, many nations are pursuing on- and offshore wind energy development as a renewable energy strategy. Denmark, German, Netherlands, and the United Kingdom lead the way in Europe with operational offshore wind farms. In North America, the United States is making strides with efforts underway in the Atlantic Ocean.

But then there is the pressing challenge of maximizing the operational investment in equipment.  Wind turbines generate electricity only when wind speeds are sufficient, and this fluctuation requires backup power sources or energy storage systems to ensure a stable energy supply. Leaders in this ever-growing sector are asking critical questions about metrics: How do we know what the wind is? If I know what the wind is, do I know the value of my wind resource? Am I producing correctly or not?  Even how wind arms can are possible risks to birds and bats, leading to potential collisions with turbines. Proper site selection, direction and mitigation measures reduce these conservation concerns.

Technology advancements are crucial to tap the full potential of wind power. Ongoing research and development efforts aim to enhance turbine efficiency, increase capacity factors, and improve energy storage solutions. Additionally, advances in offshore wind power are expanding its reach into new areas, where winds tend to be stronger and more consistent.

On the Way to Dubai and COP28 – Wind Power Validated

“The earth has enough sun and wind to meet humanity’s energy consumption,” says Peled, who managed wind farms in Eastern Europe before returning to Israel to launch his company.  “Now, the prime business question is operational.  Are there enough solar panels – probably not. Currently, the rate of solar panel energy access is low – one megawatt-hour of solar power compared to one-third to half of the megawatt capacity of wind. Wind is more efficient as an energy source.  Real-time measurement is critical to shifting this industry with its great potential into a high-performance sector,” he adds.

Wind power offers a great future for diversified energy sources. Measuring wind power is crucial to secure its place as an effective solution.  Our dominant economic model is from extracting crude oil from the earth, but this chapter is coming to an orchestrated close.  As the world convenes soon in Dubai for COP28, calls for renewable and sustainable energy will grow louder. It’s not enough to suggest that wind is a sustainable alternative.  That must be proven.

Accurate measurements – amassing that data – will determine whether wind power will become a global priority and how nations and corporations assess farm site suitability, optimize turbine placement and evaluate energy output. Only accurate and validated data can enable that level of informed decision-making, planning, and, ultimately, the great potential of wind power as a renewable energy source.  This visit to First Airborne was a conversation with pioneers whose robotic engineering attention to detail will likely take the hot air out of wind’s significant renewable energy potential.

The post Harvesting the Breeze: Unleashing the Power of Wind Energy appeared first on Medika Life.

Last year, the Israeli Innovation Authority shepherded 10 climate tech startups to COP27 in Sharm El Sheik, Egypt. In 2022, those companies represented the country’s growing climate tech sector, from alternative protein production to clean energy systems to waste mitigation solutions.

Now, fast forward one year to COP28 in Dubai. The Israeli Innovation Authority has announced that its contingent will blossom 10-fold – 100 companies and 1,000 people – including 30 start-ups will join government ministers, scientists, investors, businesspeople, and environmental groups uniting to drive the “Climate of Innovation.”

Answering the “BHAG” of Climate Commitment

At the November/December COP28 gathering – expected to attract 80,000 attendees – signatories to the 2015 Paris Agreement will join a global reflection exercise to benchmark how all are progressing toward their climate change commitments. Those “big hairy audacious net zero goals” include reducing global warming emissions to keep average temperature increases below 2°C (3.6°F) and ideally 1.5°C (2.7°F), compared with pre-industrial 1880s levels.

But the communal soul-searching will most likely arrive swiftly at the conclusion we all dread hearing – we are not on track to hit our targets. Global temperature is projected to warm by about 1.5 degrees Celsius (2.7° degrees Fahrenheit) by 2050 and 2-4 degrees Celsius (3.6-7.2 degrees Fahrenheit) by 2100.

How do we turn the tide? We must empower innovators to move their climate/tech ideas from bench to test to market as quickly as possible.

What is holding up the pace of progress?

When Talent, Capital and Policy Align, Change is Possible

Three things must align: talent, financial capital, and government policies. This is why Israel is climbing the leaderboard of game-changers. The Israeli government has given the green light for ministries to collaborate and launch start-up incubators and innovation hubs focused on clean technologies and climate change solutions. Encouraging policies support entrepreneurs and provide resources for developing and ramping up climate-friendly technologies. The right environment has been cultivated. Then it comes down to talent and capital.

Israel has one of the world’s highest numbers of engineers per capita; the Start-Up Nation is estimated to have around 135 engineers per 10,000 people. But now, the country’s educational system prepares those interested in the sciences and engineering to supercharge their abilities.

The scale of talent is there and getting smarter. 

The BioConvergence of Science and Engineering

“Our M.Sc. bio-convergence program aims to train leaders of multidisciplinary projects. We believe synthetic biology, bio-convergence, and an economic growth engine can help the environment and many other aspects affecting human health,” reflects Yuval Dorfan, Ph.D., MBA, Senior lecturer, HIT: Holon Institute of Technology in Israel and Research Fellow at Zvi Meitar Institute, Reichman University. “The program will cover all aspects required for developing new products: bio-engineering tools, sustainability, bioethics, cyber-biosecurity, and regulation.” 

Incubators, accelerators, and private equity groups in Israel focused on training and investment for the defense, technology and health sectors have been welcome and plentiful. But addressing the pressing challenges of the planet demands their full engagement to advance the country’s climate and environmental innovation sector. That’s happening.

Israel’s private equity community increasingly supports the environment and climate tech sector. Private equity firms in Israel recognize the importance of addressing the social impact of climate change globally. The country’s history in overcoming environmental challenges in water conservation, energy scarcity and recycling has made it a real-world testing ground for ideas that work.  Its emphasis on protecting nature creates a balance between business and biology.

The Power of Collaboration

Venture capital firms have moved rapidly to begin funding startups and growth-stage companies that focus on renewable energy, clean technologies, sustainable agriculture, water management, waste management, and other sectors related to climate change mitigation and adaptation. They provide capital, expertise, and strategic guidance to help these companies develop and scale their technologies.

COP28 is expected to be Israel’s breakout moment in ecohealth and climate tech, and Israeli private equity and venture capital teams are ramping up efforts in preparation. Aside from the three essentials for success – talent, capital, and favorable policies – Israel has a global competitive advantage: its society is highly collaborative. 

Sharing knowledge is part of the country’s entrepreneurial culture.  On Thursday, July 20th, leading investors, academics, and government officials will share insights with entrepreneurs in a Meet-Up organized by Levi Shapiro, curator and founder of mHealth Israel, titled: “2024 EcoHealth & ClimateTech Investment Outlook.” 

Many of the country’s leading minds will update attendees on the investment and regulatory landscape, key trends and success factors in the climate tech sector, and the role of government and the private sector in championing climate innovation.

Dr. Yael Parag Cohen, incoming Dean, Reichman University; Inbar Blum, Deputy Head, Growth Division, Israel Innovation Authority; Anat Tsour, Founding CEO, Capital Nature; Inbar Blum, and Bracha Halaf Ph.D., Managing Partner, ClimateTech VC, will be presenting and joining in the conversation at the Herzog law firm, 6 Yitzhak Sadeh, 1F, Tel Aviv. 

The Planet Doesn’t Need People – People Need the Planet

Talent, capital, and policy are essential to address one of the world’s most pressing needs – a failing environment. From the nation that brought us Waze and AI-powered Mobileye, Israel, which has already created desert-friendly irrigation and drinking water produced from thin air, will likely deliver breakthrough climate/tech soon.

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