Climate tech's ROI: balancing growth and decarbonization
The global push for decarbonization has brought climate technology to the forefront of innovation, but the road to widespread adoption is not without its challenges. At RBC Capital Markets’ Global Energy Transition Conference, industry leaders from GRESB, Silvera, and EV Energy shared insights into the evolving landscape of climate tech, highlighting scaling barriers, the role of artificial intelligence (AI), and the growing focus on return on investment (ROI).
Scaling challenges in climate tech
Tom Idzal, Head of Americas at GRESB, outlined three key barriers to scaling in the climate tech sector: capacity, complexity, and regulatory differences. “Getting the consumption data needed is not always easy,” Idzal explained, noting that some industries face legal or logistical challenges in accessing data. Additionally, global regulatory variations complicate standardization efforts, while sector-specific complexities demand tailored solutions. GRESB’s recent work on a data center sustainability standard, developed over a year of collaboration with industry stakeholders, underscores the time and effort required to address these challenges.
"AI opens up an incredible opportunity for us to severely downscale our individual human verification and do that more automatically."
Tom Idzal, Head of Americas, GRESB
For EV Energy, scaling involves navigating the long planning horizons of utility companies. Rob Hollingsworth, Financial Director at EV Energy, highlighted the disconnect between utilities’ 15-year plans and the rapid pace of climate tech innovation. “We need to listen to our utility clients, understand their challenges, and meet them where they are,” Hollingsworth said. This includes providing data to showcase the impact of electric vehicles on energy grids and exploring emerging solutions like bi-directional charging.
"We need to listen to our utility clients, understand their challenges, and meet them where they are."
Rob Hollingsworth, Financial Director, EV Energy
The role of AI in climate tech
Artificial intelligence is proving to be a game-changer in the climate tech space. Idzal emphasized how AI is transforming GRESB’s data verification processes, reducing reliance on manual validation and unlocking new insights. “We’re sitting on a data set that isn’t rivaled in the world around private, real asset performance,” he said. AI enables GRESB to analyze trends and performance metrics at unprecedented speed and scale, offering valuable insights to stakeholders.
Silvera’s CEO, Alistair Furey, shared how AI has been instrumental in recalibrating carbon stock estimates in forests. By using laser scanning technology and AI, Silvera discovered that biomass estimates in Mozambique’s Mumba forest were 80% too low. “The value of the natural capital we established for Mozambique was equivalent to its entire GDP,” Furey revealed. Such breakthroughs highlight AI’s potential to drive innovation in carbon markets and environmental commodities.
"The value of the natural capital we established for Mozambique was equivalent to its entire GDP."
Allister Furey, Chief Executive Office and Co-Founder, Silvera
The shift from decarbonization to ROI
A recurring theme among the speakers was the industry’s shift from a singular focus on decarbonization to a broader emphasis on ROI. “We’re doing this for a purpose—because it drives increased value,” Idzal remarked, pointing to the economic benefits of reducing inefficiencies in real assets. Investors are now demanding more proof points and practical plans, as Hollingsworth noted: “They want more guarantees that things are going to work.”
Furey echoed this sentiment, highlighting the importance of clear ROI in the net-zero transition. Silvera’s partnership with Fidelity involved mapping regulatory pathways into costs to assess the impact on business valuations. “When a carbon price comes in, whether it’s $4 or $40, it really matters,” Furey said. Such data-driven approaches enable investors to make informed decisions about asset allocation and portfolio management.
Looking ahead
The climate tech sector is at a pivotal moment, with innovation accelerating but challenges persisting. As companies like GRESB, Silvera, and EV Energy continue to push boundaries, collaboration and data-driven solutions will be key to overcoming barriers and achieving sustainable growth. With AI unlocking new opportunities and investors prioritizing ROI, the future of climate tech holds immense promise for driving both environmental and economic value.
