Traversing the Climate Technology Scale Gap

Elemental Impact, in collaboration with Boston Consulting Group, addresses the 'Scale Gap' in climate technology, where start-ups face significant challenges in securing funding to scale from pilot to commercial deployment. This $150 billion funding gap poses a critical barrier to advancing climate solutions. To address this, Elemental and BCG convened 100+ industry leaders — including corporates, EPCs, insurers, market-rate capital (VC, PE, Infra, Pensions) and concessionary capital — to identify practical strategies for de-risking investments and accelerating investment in climate tech.

The findings from various convenings and the report emphasizes innovative applications of existing financial instruments (i.e., “old tools") and the formation of new partnerships across investors with different strategic orientation and capabilities (i.e., “new friends”), to open the pathway to unlock capital and scale transformative climate technologies at critical growth stages.