PNNL

Abstract

Achieving current climate pledges (1) and reaching net-zero emissions will require policies to support rapid development, demonstration, and deployment of new technologies (2). Like other aspects of climate policy, these innovation processes involve multiple stakeholders including governments, corporations, financial investors, start-ups, and users (3, 4). Much like governments, corporations have historically shaped innovation through internal research and development (R&D) and procurement of new products and services. But, more recently, corporations have taken on a new role by investing in external climate-tech start-ups that aim to rapidly commercialize low-carbon technologies (3). Exemplifying this trend in the past two years, Microsoft and Amazon announced plans to invest $1 and $2 billion, respectively, in climate-tech start-ups, and Total’s external venture investment arm re-branded to focus on carbon neutrality. Given the potentially transformational nature of start-up technologies, these investments could have an outsized influence on technology trajectories, and ultimately climate and societal goals. Despite the policy implications of corporations and their climate-tech start-up choices, little research has been done on these critical actors and processes (5).