The UN’s COP15 summit, held in Montreal, just ended with the adoption of the Kunming-Montreal Global Biodiversity Framework, a historic deal aimed at protecting and restoring nature. The agreement, reached by 195 countries, is the result of four years of negotiations and will guide global conservation efforts until 2030.
Climate change and biodiversity loss go hand in hand. This new agreement is equivalent to the adoption of the 2015 Paris Agreement regarding climate change to limit global warming to 1.5 degrees Celsius, but this one focused on biodiversity conservation and restoration.
The COP27 has just finished, with disappointing results. On the positive side, for the first time, the concept of compensation for loss & damage for developing countries has been included.
On the negative side, two big disappointments. First, there was no clear commitment to phase out all fossil fuels at some point in the future. Second, the gap between what is needed in greenhouse gas emission reductions to contain temperature increase to 1.5℃ – the level agreed upon by world governments in the Paris Agreement – and the current policies in place is huge. The planet needs a reduction of 45% in GHG emissions by 2030 compared to 2010 levels to maintain the temperature increase below 1.5°. However, as the chart below shows, with the current policies announced so far, the world is instead on a trajectory to increase GHG emissions by 11% compared to 2010.
On this trajectory, the world will end up with a temperature increase way higher than the critical but manageable 1.5° level, which would have dramatic consequences on climate and therefore on humanity. Scientists are certain that temperature increases higher than 1.5° would create an existential risk for humanity.
We all need to understand this reality and, individually and as a society, urgently pressure governments and corporations to accelerate the decarbonization of the economy that would reduce GHG emissions.
I want to share a fantastic podcast – A Matter of Degrees by Dr. Leah Stokes and Dr. Katharine Wilkinson – that discusses very clearly the terrible environmental impact of the crypto sector.
By definition, most crypto tokens use a proof-of-work system that essentially consumes (and wastes) excessive amounts of energy in resolving cryptographic problems. The energy required is being generated using fossil fuels directly, or by renewable sources, but in the latter case, forcing other energy users to revert to electricity generated by fossil fuels. Estimations put energy consumption by the crypto sector at 1% of the total global consumption.
Not surprisingly, crypto fans (especially bitcoin maxis) argue that crypto is using unused excess capacity, therefore making the whole energy system more efficient. Obviously, this is incorrect, and the podcast talks about this.
I am happy to share several resources we put together at Dalus Capital for the Climate Innovation space in Latin America. This is an emerging ecosystem and we hope these initiatives will help its development.
The first Climate Innovation Startup Radar for Latin America. This is the first version with the startups in the region we have identified. Feel free to download and distribute this startup radar. If you know of other startups in Latin America that we should include, please share them with us here.
We also created a collaborative Latam Climate wiki that you can check out here: latamclimatewiki.com. Also open to all collaborations and suggestions on what to include.
Finally, you can check out here the videos of all the sessions we had at the first LATAM Climate Innovation Summit in Mexico City last July.
Reach out if you want to collaborate on some of these initiatives.
A few weeks ago, I was invited by Jason Rissman to participate in his podcast Invested in Climate, together with two climate tech entrepreneurs – José Manuel Moller and Fernando Ocaña. José Manuel is the founder and CEO of Algramo, one of the circular economy startups in which we have invested from Dalus. Fernando is developing an electric Tuk Tuk for Mexico City.
The Dalus Capital team organized the first edition of the Latam Climate Innovation Summit in Mexico City last week. We partnered with several sponsors including the U.S. State Department, Amazon for Startups, INCmty, Tecnologico de Monterrey, Grupo Habita, Buna Coffee, Cultura Colectiva, and Daikin. Special shoutout to Dalus team members Chris Down, Eugenia Rendon, and Jimena Buitron, who led the effort.
Climate change represents an existential challenge for humanity today. The future of civilization is at risk if collectively we do not achieve a net-zero world. At Dalus, we are strong believers that multiple solutions are required including many tech-based that already exist today or that will need to be developed.
Below you will find a selection of books I recommend from what I read in the twelve months. An exciting combination of fiction and non-fiction.
Fiction
The Ministry for the Future by Kim Stanley Robinson. A climate-fiction novel that presents a plausible future for the planet as the planet heats with the continuing burning of fossil fuels.
Dune by Frank Herbert. I read this for the first time when I was in my teens and it fascinated me. Recently decided to read the book again before seeing the new movie adaptation, which by the way I highly recommend as well. A deeply rich future with a very political plot.
Nuestra parte de noche by Mariana Enríquez. I really enjoyed this horror novel that presents a very elaborated dark world. This book from an emerging Argentinian female writer has won several awards. I believe an English version has not been released yet.
Las cosas que perdimos en el fuego (Things We Lost in the Fire) by Mariana Enríquez. Short horror stories written before the novel above.
Humanity continues consuming fossil fuels and carbon dioxide (CO2) continues accumulating in the atmosphere. For the first time, the level of 420 ppm was reached in 2022. The following charts show clearly how humans have caused this.
Personally and at Dalus Capital, we are very concerned about climate change. If humanity does not transition out of fossil fuels soon enough, the warming of the earth would have catastrophic consequences on life on the planet, including on humans. You can see an animation at the bottom of this post that very graphically shows the scary trend we have created.
I believe the solution to the climate change challenge will require many complementary solutions, including startups using technology to mitigate emissions or generate resilience and adaption to the change that is happening.
I am surprised many people do not know her. Greta is a 16-year old teenager from Sweden that has become one of the leading environmental activists raising awareness of the risks posed by global warming and the climate crisis. I think she is one of the activists that could influence politicians, governments and other decision-makers around the world to move to action to reduce carbon emissions.
