Hope you had a happy President’s Day, and happy Tuesday!
We’re doing a postmortem of the short and sweet life of the SEC’s climate disclosure rules, which burned bright and faded fast.
In deals, $150m for air energy storage manufacturing, $115 for vertical farming, and $83m for CO2 to chemical transformation technology.
In other news, political pullback at the EPA, a new European AI initiative (with climate provisions), and UK energy subsidies try to balance renewables projects.
And ICYMI, check out our Friday feature on working capital for climate startups here.
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The SEC is putting its climate disclosure rules on a tight leash. The US markets watchdog first proposed the rules in 2022 under then-President Joe Biden and officially announced them last spring, though only after plenty of barking from industry groups and lawmakers led to a watered-down version. Still, legal challenges piled up. Now, acting SEC Chair Mark Uyeda has signaled that the agency may not fight back — a heel turn for corporate climate transparency in the US, but not the rest of the world.
Under former chair Gary Gensler, the SEC approved a rule requiring companies to disclose climate-related risks, arguing that such information could be material to investors. After years of debate, the final rules landed in March 2024 — but with significantly loosened requirements. Gone were Scope 3 emissions disclosures, and even Scope 1 and 2 reporting was scaled back. Uyeda, then an SEC commissioner, voted against even the softened version.
Over the past year, lawsuits from companies and Republican lawmakers mounted, leading Gensler to suspend enforcement pending court review. Critics argue that existing financial regulations already require companies to disclose material risks, making additional climate-specific rules redundant. When Gensler stepped down in January, Uyeda took over and wasted no time shifting course. He’s now asking the courts to pause the legal battle while the SEC reassesses its approach to the rule.
The SEC’s rule was expected to apply to 2,800 U.S. companies and 600 non-U.S. firms, pushing more businesses to report their climate risks. Today, fewer than half disclose even Scope 1 and 2 emissions, meaning many would have had to scramble to quantify their climate impact. The final rule had three key takeaways: it prioritized “material” risks but left room for interpretation, dropped Scope 3 emissions disclosures — making it weaker than EU and IFRS standards — and mandated reporting on financial impacts from physical climate risks, potentially boosting markets like climate insurance.
Despite the noise around the rule’s rollback, the actual impact may be limited. The rule was already watered down and never enforced, and with agencies under Trump’s new administration showing little appetite for climate regulations, federal momentum on corporate disclosure is likely stalled. Meanwhile, major financial institutions are publicly stepping back too — six of the biggest U.S. banks recently quit the Net-Zero Banking Alliance, for instance, signaling a retreat from collective climate commitments, even if internal strategies remain unchanged.
That said, climate reporting isn’t going away. Investor pressure, state regulations, and international mandates will keep many companies on the hook. The European Banking Authority already has a rule mandating banks disclose information on climate risks and their plans to address those risks, including in their lending portfolios, that went into effect in 2023. Plus, the EU’s Corporate Sustainability Reporting Directive (CSRD) and California’s climate disclosure laws already require emissions and risk disclosures, and New York is reintroducing similar rules. Businesses operating across these jurisdictions will still need to comply, regardless of what happens at the SEC.
🌾 80 Acres Farms, a Hamilton, OH-based vertical farming company, raised $115m in Series D funding from Barclays Climate Ventures, Blue Earth Capital, General Atlantic, Siemens Financial Services, The Western and other investors.
✈️ Twelve, a Berkeley, CA-based CO2 to chemical transformation technology provider, raised $83m in Series C funding from Amazon Climate Pledge Fund, DCVC, Development Bank of Japan, Fundamental Advisors, Japan Hydrogen Fund, and other investors.
🌳 Mast Reforestation, a Seattle, WA-based wildfire recovery and carbon capture company, raised $25m in Series B funding from Pulse Fund, Social Capital, Asymmetry Ventures, Climate Avengers, Climate Capital, and other investors.
🏭 Positron, a Reno, NV-based developer of energy-efficient chips and systems, raised $24m in Seed funding, from Flume Ventures, Valor Equity Partners, Atreides Management and Resilience Reserve.
🌾 IBI-Ag, an Israeli based developer of environmentally friendly biological pest control solutions, raised $6m in Seed funding from Corteva Catalyst, Trendlines Group, Iron Nation and Consensus Business Group.
🐄 Agteria Biotech, a Stockholm, Sweden-based methane-reducing feed additive service provider, raised $6m in Seed funding from AgriZeroNZ, Industrifonden, Mudcake (prev. Trellis Road), and Norrsken Launcher.
☔ Renew Risk, a London, England-based risk analytics for energy assets service provider, raised $6m in Series A funding from Molten Ventures, Insurtech Gateway, and Lloyd’s Lab.
💨 44.01, a London, England-based mineralizing CO2 into rock service provider, raised $5m in Series A funding from Jasoor Ventures and Nysnø.
🥩 Planted, a Cologne, Germany-based ESG management provider, raised $5m from Smart Infrastructure Ventures, TechVision Fonds, WENVEST Capital, Aws Gründungsfonds, and Neoteq ventures.
🛰 Air Aware Labs, a London, England-based air quality service technology provider, raised an undisclosed amount of Pre-Seed funding.
🔋Hydrostor, a Toronto, Canada-based compressed air energy storage manufacturer, raised $150m in Convertible note funding from Canada Growth Fund, Canada Pension Plan Investment Board (CPP Investments), and Goldman Sachs and $50m in Debt funding from Canada Growth Fund.
🛵 Revel, a Brooklyn, NY-based urban electric micro mobility manufacturer, raised $60m in Debt funding from NY Green Bank.
⚡ Stormfisher, a Toronto, Canada-based hydrogen-based fuel producer, raised $50m in Project finance from Hy24.
🌾 80 Acres Farms, a Hamilton, OH-based vertical farming company acquired Plantae Biosciences, an Israeli, biotechnology company for an undisclosed amount.
🔋Arcadia, a Washington DC-based global utility data and energy solutions platform acquired RPD Energy for an undisclosed amount.
Junction Growth Investors, a Antwerp, Belgium-based investment firm, raised €115m, exceeding its target, to invest in European energy transition companies, focusing on electrification and grid enhancement technologies.
Can’t get enough deals? See full listings and deal analytics on Sightline Climate
In EPA news, Republican lawmakers want to repeal the EPA’s methane fee, which helps curb emissions from O&G operations by capturing gas from leaks via MRV technologies, supporting compliance with international standards. Meanwhile, the new EPA head has announced plans to reclaim $20bn allocated under the Greenhouse Gas Reduction Fund, citing concerns over oversight, sparking legal challenges from Democrats. These developments show the significant political and legal challenges surrounding US climate policy amid the administration change.
France is dedicating 1GW of nuclear power to build a major AI computing hub, leveraging its nuclear-heavy grid for reliable energy, as part of the EU’s new InvestAI initiative that aims to mobilize €200bn for AI, including €20bn for AI infrastructure. As Europe seeks to compete in the global AI race, France’s energy advantage positions it as a key player, although details on funding and timelines remain unclear.
In UK energy news, households paid a record £1.9bn in offshore wind subsidies due to older policies guaranteeing fixed prices, while lower market prices for wind might now discourage new projects. Meanwhile, biomass energy plant Drax secured a new contract for difference (CfD) at £113/MWh for 2027-2031, down from £132/MWh but still higher than recent offshore wind auction rates, as the country looks to balance energy security and renewables amid rising prices.
In 2024, China added a record 356GW of wind and solar, while also starting 94.5GW of new coal plants, despite its vow to start reducing carbon emissions by 2030. To support renewables, China also released a roadmap to shift wind and solar pricing from government-set rates to market-based pricing, to boost efficiency, competition, and grid integration. If successful, it could accelerate China’s shift to a market-driven renewable energy mix.
Captura has launched a new Direct Ocean Capture (DOC) pilot plant in Hawaii, capable of capturing 1,000 tons of CO2 annually. This marks a key step in scaling up DOC technology and progress in Captura’s goal to rapidly expand this technology globally to help address climate change.
FOAK OGs and David Yeh are teaming up to start a new FOAK advisory firm, Precursor.
AI models x energy savings leaderboards.
A new paper suggests the US grid could power up its capacity — with just 1% downtime, it could add 126GW.
NeoCarbon lays the foundation for concrete with captured CO2.
Sky’s the limit, with new space-based solar panel innovation.
It's 2025 and both Bridget Jones and Erin Brockovich are back: Brockovich is leading a lawsuit against the battery fire in Northern California.
Get ready to deck out your pitch deck with these impact fundraising examples.
Down but not out, concentrated solar power might be coming to an Outback near you.
Supply, meet demand: A new platform for project developers and carbon removal projects.
Warning: The intense California chemical labels seem to be working and changing manufacturers’ tactics.
Nominate your favorite invertebrate species of the year here!
Gotta get around the red tape somehow — beavers built a dam in a Czech river in two years, while local officials were still getting permits.
Every week, we come across interesting charts and visuals. We've created a new section, "Trendline," to share these with you. Let us know what you think and if you’d like to see more of this going forward!
📅 AI for Climate: RSVP to attend the AI for Climate: Scaling Solutions, Reducing Impact webinar hosted by CarbonDirect on February 20th for a discussion on balancing the role of AI in optimizing energy systems while mitigating its climate footprint.
📅 BERC Energy Summit: Register to attend the Berkeley Energy & Resources Collaborative’s 2025 Energy Summit from February 20-21 to discuss pressing topics such as managing AI-driven load growth within the energy transition and energy security as national security.
📅 ACCEL Year 3 Kickoff: RSVP to attend the ACCEL Year 3 Kickoff event on March 6th to welcome the third cohort of BIPOC-led climate tech startups in the agriculture, buildings, electricity, manufacturing, resilience and adaptation, and transportation sectors.
💡 Venture For ClimateTech: Apply to Venture for ClimateTech by March 7th for an opportunity to join Cohort 5 and access up to $50,000 in non-dilutive funding while validating your market opportunity.
💡 Offshore Wind Accelerator: Apply to the Offshore Wind Innovation Hub accelerator by March 21 for an opportunity to join the NYC-based six-month program, designed to support international startups and innovators through mentorship and access to industry leaders.
💡 International Landing Pad Network RFP: Apply to participate in the inaugural International Landing Pad Network by March 26th and access support for your growth-stage company operating in the advanced technology, green economy, and life sciences ecosystems.
📅 Aspen Ideas: Register to attend the premier solutions-oriented event on July 21-22, which brings together leaders, innovators, and the public to highlight transformative climate solutions in Chicago.
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