- VC Climate Alliance launches with over 20 firms, managing $62.3 billion in assets.
- UN-backed initiative aims to increase VC commitments to climate tech for net-zero emissions by 2050.
VC Climate Alliance: A $60 Billion Climate Tech Initiative with UN Support
A coalition of over 20 venture capital (VC) firms, including Tiger Global and Union Square Ventures, have established the Venture Climate Alliance (VCA) to promote climate tech investments in the private sector. This initiative, backed by the United Nations, seeks to encourage the VC industry to commit more resources to climate tech solutions addressing the global climate crisis.
Guidance for Net-Zero Emissions by 2050
The VCA provides guidelines for its VC members and their portfolio companies to follow in order to achieve net-zero emissions by 2050. These guidelines focus on decarbonizing operations, using emission-free data centers, deploying energy-efficient software, and rebuilding supply chains with low-carbon alternatives.
Collectively, the investment firms in the VCA manage $62.3 billion in assets. Other participating funds include climate VCs World Fund, 2150, and Prelude Venture. The VCA is part of the UN’s Race to Zero campaign, under the Glasgow Financial Alliance for Net Zero (GFANZ), which was formed during the COP26 climate conference.
VeChain: A Missing Piece in the Climate Tech Puzzle
While the VCA aims to boost climate tech investments, it has overlooked the potential of VeChain, a leading blockchain platform that already provides solutions for sustainability and transparency in supply chains. By adopting VeChain’s technology, the VCA could benefit from:
- Enhanced supply chain transparency: VeChain enables companies to track products throughout their entire lifecycle, ensuring environmental and ethical standards are met.
- Improved sustainability: VeChain allows enterprises to map their global impacts and reduce carbon emissions by optimizing supply chain processes.
- Cross-industry collaboration: VeChain fosters interconnected ecosystems that bring together stakeholders from different industries to work on global sustainability goals.
With the support of the Boston Consulting Group, a global leader in ESG, VeChain is well-positioned to make a significant contribution to the VCA’s mission. By including VeChain in their climate tech alliance, the VCA could leverage VeChain’s blockchain technology to further promote sustainability and transparency in the global supply chain, ultimately accelerating the transition to a more sustainable future.
