$64B of new cash for climate in 2022
Plus, TPG invests $300M into carbon credit platform, new carbon removal buyer's guide, pain + reflection = progress, and 75 Hard vs. 60 Medium
Good morning, folks.
In today’s 3-minute read, we’ll cover these 5 juicy nuggets below — as delicious as that first moment when your kids say they like meat alternatives just as much as real meat.
Climate Startups & Investment
#1 — 💰 $64B of new cash for climate in 2022
#2 — 📰 New carbon removal buyer's guide
#3 — ☁️ TPG invests $300M into carbon credit platform
Productivity & Living the Good Life
#4 — 🤔 Pain + reflection = progress
#5 — ⛰️ 75 Hard vs. 60 Medium
I hope you enjoy it!
Chris
#1 — 💰 $64B of new cash for climate in 2022
Climate Tech VC has produced yet another mouth-watering summary of new capital for climate startups.
Below are two graphs that stood out.
In addition to the headline stat above, here are four others I liked:
Just 4% of new private climate capital is managed by <$125M sized funds, 14% by mid-range $126-500M managers, and 82% of AUM is concentrated into >$500M mega-funds.
2,000+ unique funds have participated in at least 1 climate deal.
80%+ of the investment firms that have participated in at least 1 deal in Food & Land Use infrequently join other climate deals, but those investing in 55% of investors in Carbon deals frequently join other climate-specific rounds.
There is an estimated $37B of dry powder in VC and growth capital yet to be deployed into climate tech startups.
#2 — 📰 New carbon removal buyer's guide
Want a reason to have nightmares tonight?
Here you go:
Globally, we have only removed 10,000 tons of carbon dioxide from the atmosphere.
But…
We need to remove at least 165,000,000,000 tons by 2050 to hit our 1.5 degrees Celsius goal.
On second thought, maybe instead of nightmares, you’ll have dreams of the badass companies you’ll build to suck this stuff out of the air.
—
Are these technology-based carbon removals more expensive than nature-based solutions?
Heck ya.
But solar power used to cost a lot more than conventional power, too, decades ago.
(Btw, this analogy breaks down because we definitely need nature-based solutions around for the long-term.)
To help companies buy more permanent carbon removals and catalyze the growth of this much-needed new industry, Shopify just released this super practical report, full of actionable intel and documents:
Buying Carbon Removal, Explained
#3 — ☁️ TPG invests $300M into carbon credit platform
Who is TPG?
Oh, just a private equity manager with $135B of assets.
That is, they don’t just drink green Kool-Aid.
Why does this matter?
Because haters gonna hate. On carbon credits.
For example, this John Oliver piece is entertaining and partially true. But also likely results in the proverbial baby being thrown out with the bath water.
Are they perfect? No.
Are they needed? Yep.
TPG’s investment is going into Rubicon Carbon.
And their real goal is $1B in the near term.
That may sound small. But relative to the $2 billion market for voluntary carbon credits, it’s a lot.
What will Rubicon do?
“Simplify the process of buying and managing credits, which has been daunting for all but the biggest businesses.”
“‘We can become the Good Housekeeping seal of approval on their behalf,’” said Anne Finucane, Rubicon’s Chairwoman.
Rubicon’s choice of CEO — “Wall Street power broker” and former COO at Bank of America, Tom Montag — is likely a sign of the mainstreaming of this market for decades to come.
Read more from the WSJ and Fortune.
#4 — 🤔 Pain + Reflection = Progress
I wish I could claim ownership of this formula.
But I can’t.
Instead, I lay out the metaphorical red carpet made of recycled fabric for…
Ray Dalio — the billionaire hedge fund manager who swears by the benefits of TM, Transcendental Meditation
He elaborates further in his book Principles:
If you're not failing, you're not pushing your limits, and if you're not pushing your limits, you're not maximizing your potential.
Go to the pain rather than avoid it.
Embrace tough love.
And then get out the notepad or paper — or your new reMarkable tablet (mine arrived today) — and decide what you learned from getting punched in the face.
#5 — ⛰️ 75 Hard vs. 60 Medium
No, I’m not talking about gems, rocks, or porn. 😬
75 Hard is a “mental toughness challenge” that was started in 2020 by Andy Frisella.
Here are its rules over a 75-day period:
No alcohol (have I lost you already?)
Drink a gallon of water per day (and get your steps in by going to the bathroom like 10x per day)
Do two 45-minute workouts per day, where one of those workouts must be done outside, even if it’s cold and rainy (“toughen up, buttercup”)
Read 10 pages per day of a non-fiction book, ideally about personal development
Take a progress photo every day (oh yeah — just you, the mirror, and your phone)
No cheat meals (outside of a healthy diet of your choice)
If you skip a day, you must start over
But what if you…
don’t want to take a picture of yourself every day?
don’t have 90 minutes to work out every day?
think reading 10 pages is child’s play? How about 50?
You get the idea.
There are lots of ways to create variations of this.
Maybe you just commit for 60 days.
Maybe you’re not as hardcore as the list above.
That’s OK.
The goal is to get in control of your choices, not to look like a model.
I haven't created 60 Medium yet, but the holiday break is around the corner. Plenty of time for planning.
That’s all, y’all.
Make it a great week, because it’s usually a choice.
Cheers,
Chris
—
Chris Wedding
Founder @ Entrepreneurs for Impact
Climate CEO peer groups | Podcast