2229: Patch and the Technology Scaling Unified Climate Action
Jan 7, 2023
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Brennan Spellacy, Co-Founder and CEO of Patch, shares insights from his carbon offset technology company that helps businesses calculate and manage their carbon footprints. They explore how Patch empowers over 100 companies, including Farfetch and Harvard University, to finance various carbon removal projects. Brennan discusses the intersection of technology and sustainability, the challenges companies face in adopting eco-friendly practices, and the crucial role of transparency in carbon offsetting. This conversation emphasizes the necessity of integrated solutions for effective climate action.
Patch's technology empowers companies to calculate their carbon footprints and finance diverse projects for carbon removal and sequestration.
The growing demand for sustainable practices highlights a shift in investment trends, emphasizing the need for long-term commitments to climate technology solutions.
Deep dives
The Role of Carbon Removal in Climate Action
Carbon removal plays a pivotal role in addressing climate change, as it complements traditional decarbonization efforts. While decarbonization focuses on reducing emissions at their source, the current levels of atmospheric CO2 necessitate carbon removal strategies to achieve net-zero objectives effectively. Businesses must recognize that a ton of carbon prevented from being emitted is more beneficial than a ton emitted and later removed, making it clear that both strategies are essential for combating climate change. Patch operates as a carbon removal marketplace that connects corporations with various carbon abatement projects, thereby facilitating a comprehensive approach to environmental responsibility.
Establishing Infrastructure for Sustainable Practices
To successfully implement sustainability initiatives, organizations often encounter an implementation gap due to a lack of clear operational guidance. Patch supports businesses across different levels of maturity in their sustainability journey, from those just starting to those already engaged in carbon markets. By providing a platform that integrates with carbon accounting systems and partners, Patch allows companies to find suitable solutions tailored to their unique needs and goals. This adaptable approach ensures businesses can effectively strategize and operationalize their carbon reduction and removal activities.
Investing in Long-Term Climate Solutions
Recent shifts in investment trends reveal a growing recognition of the need for long-term commitment to climate technology. Current investment levels fall significantly short of the trillions of dollars needed annually to drive the energy transition. Individuals, particularly from younger generations, are increasingly prioritizing environmental values in their spending, and this trend is pressuring businesses and investors to adapt their strategies toward sustainable practices. For the best outcomes, investors should embrace long-term perspectives that facilitate the scaling of innovative climate solutions rather than seeking immediate financial returns.
Brennan Spellacy, Co-Founder, and CEO of carbon offset technology business Patch shares the story behind the company. I also learn how their technology enables customers to calculate their carbon footprint to identify and finance offset projects that capture the equivalent carbon dioxide emissions associated with that footprint. The company works with over 100 corporations and institutions, including the likes of Farfetch, Afterpay, Harvard University, and the University of Oxford. Its customer portfolio spans industries such as travel, fintech, crypto, and ecommerce. Patch is jointly headquartered in London and San Francisco, and its principal investor is American VC fund Andreessen Horowitz. We discuss how the software allows companies to choose which projects they'd like to finance to support the removal of carbon dioxide from the atmosphere, with projects ranging from reforestation and conservation projects to more high-tech, early-stage technologies like direct air capture and sequestration projects.
Finally we explore the current macroeconomic landscape for climate technology founders in the UK and US right now and how Patch's technology works in practice and why it should not be viewed as an alternative to the decarbonisation of business.
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