🌍 SEC drops climate-disclosures like it’s hot #94CommentShareCommentShare

Happy Monday! Yay Spring!

In this week’s news, a welcome boon for climate risk analytics and carbon accounting software players - under a new proposed SEC rule (dropping later today), companies will have to step up their disclosure for emissions.

In deals, more than $200m(!) was raised this week including for a carbon removal startup using limestone to suck CO2 out of the air, along with ocean shipping logistics, and virtual fencing for cows.

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Later today, the U.S. Securities and Exchange Commission (SEC) will release a proposed rule mandating climate risk disclosure for public companies. The rule would be a major step toward protecting the financial system from risks posed by climate change.

👀 What to expect

The SEC is likely to base its rule on the TCFD framework, the go-to voluntary climate disclosure standard for investors and companies.
Companies will likely be required to disclose Scope 1 and 2 emissions, with some companies required to disclose (much more complex) Scope 3 emissions.
The proposed rule will help bring the US closer in line with the over 30 countries that have already taken action to mandate climate risk disclosure.

🤷 Why it matters

Climate change poses significant risks to investors. 215 of the world’s largest companies face nearly $1 trillion in climate-related risk, threatening financial returns.
Existing rules aren’t driving adequate disclosure, with 93% of institutional investors claiming that markets haven’t accurately priced climate-related financial risks.
Major investors and companies from BlackRock to Walmart have called for mandatory climate risk disclosure.

🚦 What it means for early-stage climate tech

If finalized, the proposed rule could boost demand for climate risk analytics. Companies will need enhanced physical risk projections and could turn to climate tech firms like Jupiter, OneConcern, Cervest, and The Climate Service.
Emissions reporting requirements could also cause demand for carbon accounting to skyrocket. Emissions management companies like Persefoni, Watershed, and Sweep could leverage the SEC rule for major growth.

Deals of the Week (3/14-3/20)

💨 Heirloom Carbon Technologies, a San Francisco, CA-based carbon removal startup, raised $53m in funding from Breakthrough Energy Ventures and Microsoft Climate Innovation Fund.

🛳️ Nautilus Labs, a New York, NY-based ocean shipping logistics platform, raised $34m in Series B funding from M12 and Microsoft Climate Innovation Fund.

💧 SupPlant, an Israel-based efficient irrigation system startup, raised $27m in Series A funding from Red Dot Capital Partners, Boresight Capital, Menomadin Foundation, Smart-Agro Fund, Mivtah Shamir, Deshpande Foundation, PBFS, and Maor Investments.

🌱 IUNU, a Seattle, WA-based greenhouse robotic system startup, raised $24m in Series B funding from Lewis & Clark Ventures, S2G Ventures, Ceres Partners, and Astanor Ventures.

🌱 Vence, a San Diego, CA-based startup offering virtual fencing for ranchers using regenerative ag practices, raised $12m in Series A funding from Merck and Shell.

🐟 Plantish, an Israel-based alternative seafood startup, raised $12m in Seed funding from State of Mind Ventures, Pitango Health Tech, Unovis, TechAviv Founder Partners, SmartAgro, E2JDJ, Alumni Ventures, FoodHack Syndicate, and OurCrowd.

🥩 Tender Foods, a Boston, MA-based alternative meat startup, raised $12m in Seed funding from Lowercarbon Capital, Rhapsody Venture Partners, Natalie Portman, Safar Partners, Bread and Butter Ventures, and MCJ Collective.

🚚 Solo, a Fremont, CA-based electric heavy truck platform, raised $7m in Seed funding from Trucks VC, Maniv Mobility, and Wireframe Ventures.

⚡ Perch Energy, a Boston, MA-based community and retail solar startup, raised $6.2m in Series A funding from Arborview Capital.

⚡ Copper Labs, Boulder, CO-based grid intelligence startup, raised $5.5m in Series A funding from Clean Energy Ventures, National Grid Partners, and Blue Bear Capital.

⚡ Ecolectro, an Ithaca, NY-based green hydrogen company, raised $4.5m in Seed funding from Starshot Capital, Toyota Ventures, Techstars, Caygan Capital, and Energy Revolution Ventures.

🌲 Cambium Carbon, a Washington, DC-based reforestation startup reclaiming wood waste, raised $3.2m in Seed funding from MaC Venture Capital, Soma Capital, Revolution's Rise of the Rest Seed Fund, Blue Ivy Ventures, and others.

☀️ Solytic, a Germany-based developer of solar photovoltaic monitoring technology, raised $2.2m in funding from EWE AG and Energy Innovation Capital.

🏍️ SWAP Energy, an Indonesia-based smart battery swapping network for e-motorcycles, raised an undisclosed amount in pre-Series A funding from Kejora-SBI Orbit, Baramulti Group, Living Lab Ventures, New Energy Nexus Indonesia, Yifang, Raksasa Capital, and others.

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Exits & New Funds:

ClimateRock, a sustainable energy SPAC, filed for a $75m IPO.

Distributed energy resources management solutions provider Packetized Energy was acquired by EnergyHub, a developer of software systems enabling flexible grid services.

In the News

An appeals court reinstated Biden’s $51 per ton social cost of carbon, which had previously been barred by a Louisiana court ruling. The ruling allows the EPA, Department of Interior, Energy, and Transportation and other federal agencies to resume using the SCC in decision making.

Last week, Joe Machin refused to support Sarah Bloom Raskin’s nomination to the Federal Reserve Board in another example of Joe derailing Joe (Biden)’s nominations to vital positions. A vocal proponent of including climate risk in economic stress tests, Sarah wrote a withdrawal letter blaming the fossil fuel industry’s efforts to sink her nomination.

Counter to Biden’s climate goals, Tennessee Valley Authority—the federally-owned utility—passed on investing in cheap renewables to build 5GWs of new gas plants to replace its aging coal fleet. Citing reliability concerns, TVA blamed renewables’ intermittency as justification to invest in more gas.

Climate activists, Swedish pension scheme AP7, BNP Paribas Asset Management, and the Church of England Pensions Board jointly announced a new framework to counter any negative climate lobbying. Together with over $130T in spending power, the group developed the 14 point “Global Standard on Responsible Climate Lobbying” rubric to hold corporations accountable for their lobbying actions in accelerating warming past 1.5°C.

Seaweed farming for climate? New research from UC Irvine, NCAR, and CarbonPlan maps out how growing seaweed could benefit the climate. The cost per ton for removal remains much higher than most terrestrial CDR for now at $375 / tCO₂ and up.

Maersk secured six biofuels partnerships from separate fuel suppliers for their massive ships. Though neat, the plan encompasses just 730,000 tonnes / yr by 2025, a mere 6-7% of their 2020 annual fuel consumption.

Pop-up

Heat pumps that look like George Clooney 😂

Alexis Ohanian wants students to drop out of college and work on climate. The 776 Foundation is offering 20 young people $100k every year for the next decade “to fund builders whose work will support marginalized people,” Lissie Garvin, 776 Foundation and Fellowship Program Director, tells CTVC. “Whether it be developing a new climate tech start-up or organizing around issues impacting climate refugees, there is endless potential to explore.”

The peat of no return? We’re nearing a tipping point for European peatlands.

For every action, there is an equal but opposite reaction. As gas prices surge, so is Tesla’s order rate.

Monocropping carbon-sucking trees is good for the climate but bad for co-benefits, especially nonnative tree species that worsen climate change’s dismantling of biodiversity.

Rage against the machine. Fed up California residents are defecting from the grid altogether with some nifty DIY hookups.

How to turn a classic car all-electric.

You can get fined for breaking up with the grid. Scientifically speaking, utilities call it “service disconnection” and are charging $5,000.

Opportunities & Events:

💡 776 Foundation: Apply by Mar 30th to join 776 Foundation’s brand new, 2-year Fellowship program looking to provide young climate innovators with $100k and the resources needed to succeed.

💡 OSV Decarbonization Challenge: Apply to OSV’s challenge by Apr 7th with a decarbonizing deeptech startup to pitch to OSV partner corporations and investors. Added bonus: selected teams will win a trip to Paris.

🗓️ Cleantech Open: Join Greentown Labs in person on Mar 22nd as they kick off their iconic accelerator which supports environmental and energy startups through investor connections, mentorships, and funding opportunities.

🗓️ Low-Carbon Hydrogen Accelerator: Join on Apr 7th to launch this first of its kind low-carbon H2 accelerator partnership between Greentown Labs, NYU Urban Future Lab, EPRI and Shell.

🗓️ Aspen Ideas: Head down to Miami Beach May 9-12th to (hang out w Sophie and) attend Aspen Institute’s multi-day event in conversation with those shaping the future of climate innovation and ingenuity. 20% off registration with code: CTVC20.