PARIS–At the global climate conference in Paris, Bill Gates announced his plan to help address climate change, the Breakthrough Energy Coalition. The coalition is a collection of some of the most influential entrepreneurs, including well-known business leaders like Richard Branson, Jack Ma and Jeff Bezos.
Led by Gates, the coalition pledged to work in tandem with national governments to increase funding for clean energy research. They will also invest in risky clean energy projects that have a long return on investment, but high potential for success.
Many of the ideas coming from existing clean energy research and development are too risky for traditional investors. Investors do not want to put money into an idea that might never make it to the market. This difficult journey from innovative idea to commercial product is known as the “valley of death,” and Gates’ coalition plans to bridge it.
Gates cites flow batteries and solar paint as two such existing products that need private sector investment. If successful, solar paint could transform any surface into a solar panel.
National governments must also play a role in the development of clean energy solutions. The research and development for clean energy technology must start with government because only they have the mandate and resources to do so. Business cannot lead the charge because it takes sustained injections of capital.
Also government-funded programs have successfully created whole new industries that came from space, defense and medical research. Gates’ coalition believes governments are key to creating the clean energy industries of the future.
In association with Gates’ announcement, President Obama and leaders around the world pledged to increase public-sector spending for research and development in clean energy. This pledge, in combination with Gates’, will constitute the biggest investment in clean energy in history.
The public sector initiative is known as Mission Innovation, and it includes 20 nations. Each participating country agrees to double its existing funding for clean energy technology within the next five years.
This pledge will increase the budget of the 20 nations to $20 billion for clean energy. These new funds will go to research and development, and the creation of new ideas and technologies.
Gates’ Breakthrough Energy Coalition will then use their business acumen to wisely invest in tech that has the best potential. With patient and consistent investment, the products will bypass the “valley of death.”
These historic investments from government and business reflect the urgency for action. Both realize the impacts climate change can have: It can cause unrest and war for governments and loss of profit for businesses.
The actor who has the most to lose, however, is the developing world. Man-made climate change is primarily caused by industrialization from the developed world, yet the developing world will be most hard hit. This harsh irony will be reduced with Breakthrough Energy Coalition and Mission Innovations’ teaming up.
Also, the global consciousness of climate change prevents the developing world from ever progressing. With knowledge of climate change comes restrictions on the worst pollutants like coal, oil and gas which are crucial resources for development.
Without the use of high powered resources like coal, poor nations can never rise out of poverty. This is why the World Bank believes clean energy is the best way to reduce poverty. It will allow the developing world to grow, and avoid the ravages of climate change. Bill Gates’ Breakthrough Energy Coalition will not only address climate change but also fight poverty.
– Andrew Wildes
Sources: Breakthrough Energy Coalition, Mashable, The Guardian
Photo: INVERSE