By Ed Ballard
Climate startups are going quiet about the climate.
A generation of companies that launched in recent years promising to wean the economy off fossil fuels are revamping their pitch to be more in tune with the zeitgeist.
Companies developing climate-friendly metals, cement and fuel are now emphasizing how their products benefit national security as global trade disputes increase. Other green-technology developers are seeking a niche in the hot artificial-intelligence market.
Many got their start when economic and political forces were aligned behind climate action. The pivots come as those forces wane.
The Trump administration has vowed to boost oil-and-gas production, ax environmental regulations and suspend the Biden administration’s green-funding programs. Even before the election, many companies had been walking back environmental goals amid investor and political pressure.
Financial conditions are also tough, with higher interest rates undermining the investment case for capital-intensive green projects. Equity funding for climate-tech startups fell 40% to $50.7 billion in 2024, a third year of declines, according to research firm BloombergNEF.
“There’s a lot of reflection and trying to anticipate the future,” said Jacob Bro, a partner at venture-capital firm 2150. “Everyone is already relabeling things a little bit.”
One company adjusting to the new reality is Magrathea Metals, which is developing a process for extracting magnesium from saltwater.
The Oakland, Calif.-based startup’s sales pitch used to focus on the climate benefits of its technology, but the references to decarbonization have recently vanished from its home page. Now it warns that the dearth of domestic magnesium production is a national-security emergency, and says Magrathea can secure material for products including jet fighters and drones.
