“Climate Tech Soars with Over $1 Trillion Boost: The Role of Incentive-Tracking Apps”

As more than $1 trillion flows into climate tech, incentive-tracking apps find firm footing Websites, apps and startups are rushing to track government incentives for climate techSpend some time with people in the climate tech world and you’ll soon learn that a lot of them share something in common: They’re not used to having a lot of money. That’s because for years, climate represented a cost for many businesses, not an opportunity. Investment in climate tech has been gathering pace over the past five years or so. The IRA alone might yield more than that since many of the tax credits are uncapped; Goldman Sachs estimates the law’s climate provisions might pay out $1.2 trillion in incentives, spurring some $3 trillion in private investment. Making sense of it all“Unfortunately, there’s no comprehensive database out there for all of these rebates and incentives,” said Thomas Stephens, co-founder of Upfront, a startup that’s cataloging incentives for merchants.

As the climate tech industry continues to boom, an unprecedented amount of money is flowing into the sector. With governments around the world offering tax credits, grants, and other incentives for climate-related investments, there’s been a rush to track and take advantage of these opportunities.

For many in the climate tech community, this influx of funding is a new and welcome change. In the past, businesses saw climate initiatives as a costly burden rather than a potential source of profit. However, as highlighted by Joshua Posamentier, managing partner at Congruent, the landscape is shifting and investors are eager to tap into what he describes as “double-digit trillion-dollar markets” that are “largely decoupled from general tech investing.”

In the last five years, investment in climate tech has steadily increased, and although the sector experienced a dip like the rest of the startup world, the third quarter showed signs of a rebound.

This surge in funding can be attributed in part to the United States and European Union’s commitment to climate-forward policies. These policies, such as the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law in the US, and the Green Deal in the EU, offer nearly $1 trillion in incentives for climate and energy investments. But as impressive as this amount may seem, it could actually be a conservative estimate. Goldman Sachs predicts that the IRA alone may result in $1.2 trillion in incentives and spur $3 trillion in private investments.

While this influx of funding is certainly exciting, it also presents a unique challenge for companies and customers alike. With so many different incentives and rebates available, it can be difficult to keep track of and make sense of it all.

Recognizing this issue, several websites, apps, and startups have emerged, dedicated to compiling and organizing information on these incentives. Thomas Stephens, co-founder of Upfront, acknowledges the lack of a comprehensive database and explains that their startup is working to fill this gap. For companies, the process of gathering, understanding, and integrating these incentives into sales proposals can be a daunting and time-consuming task, according to Tom Carden, head of engineering at Rewiring America, a nonprofit advocating for the electrification of the economy.

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Dylan Williams

Dylan Williams is a multimedia storyteller with a background in video production and graphic design. He has a knack for finding and sharing unique and visually striking stories from around the world.

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