The growing signs of trouble for global carbon markets

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

There are growing signs of trouble for the multibillion-dollar global carbon market, as investigative stories and studies continue to erode the credibility of the business world’s go-to tool for cleaning up climate emissions.

The promise of offsets is that companies or individuals can balance out their greenhouse-gas pollution by paying other parties to prevent emissions or remove carbon dioxide from the air. For example, landowners might plant a bunch of trees or agree not to cut them down, offsetting pollution generated elsewhere. At least, that’s the idea. 

But a bombshell New Yorker article earlier this month asserted that millions of carbon offsets generated by Kariba, a giant project that earned nearly $100 million for purportedly preventing deforestation in Zimbabwe, didn’t actually prevent deforestation and preserve the carbon in the trees and soil.

On Friday, Bloomberg reported that South Pole, the company that sold the majority of those credits, has severed its contract with the company that developed the site. The news “raises the real possibility that the Kariba project could collapse,” wrote the outlet, which had also highlighted problems with Kariba earlier this year. 

That, in turn, could undermine the claims of climate progress that major corporations, like Volkswagen and Nestlé, pinned on the purchase of those credits. It may also mean a lot of companies simply threw away a lot of money.

Researchers and journalists (including me) have been steadily highlighting a litany of problems with a variety of offset projects for years. These projects often harm Indigenous communities and fail to deliver the promised climate benefits. And that’s when they don’t burn down in wildfires, wiping out years of carbon gains in days.

But the sheer weight and consistency of the criticism increasingly seems to be resonating at a pitch that companies can’t ignore. In a late 2022 survey, some 40% of corporate respondents said they were concerned about the “reputational risk” raised by public criticisms of carbon offset projects.

In recent months, corporations including Shell, Nestlé, EasyJet, and Fortescue Metals Group all announced they were backing away from offsets or the claims of carbon neutrality that relied upon them. 

In a report last week, the advisory firm Carbon Direct highlighted a sharp decline in demand for offsets across the board. The firm analyzed the Voluntary Registry Offsets Database, maintained by the University of California, Berkeley, which contains data from the four major voluntary offset registries. 

Companies hoping to balance out their emissions can purchase carbon credits through these intermediaries, and then “retire” them to apply them against their emissions and ensure that no other party can count them against theirs. (This often, though not always, happens as a single step.)

But Carbon Direct estimates that those retirements are on track to decline by about 25% from 2021 levels by the end of this year. Issuances of new credits will also fall by about 7% over that period, it projects. 

“People have simply slowed down what they’re doing and are being more careful and taking longer to get to ‘yes,’” says Matthew Potts, chief science officer at Carbon Direct. “And that’s a good thing.”

Some of the slowdown could be attributable to new methodologies among offset marketplaces, as well as a crypto-related offset bonanza that spiked in 2021 and then quickly fizzled out.

But according to Carbon Direct’s report, the declines indicate a broader trend: “a fundamental downshift in the demand for riskier credits,” particularly the UN-developed REDD+ forestry credits that were the subject of a scathing study in September. 

The firm concludes that companies are backing away from credits that merely claim to prevent emissions, as when landowners agree not to cut down forests. The problem, as companies and critics have become increasingly aware, is that it’s often impossible to prove they intended to break out any chainsaws in the first place. 

Carbon Direct, however, says there’s a parallel trend underway: a flight to quality as businesses seek out projects that reliably remove carbon dioxide from the atmosphere and store it away—and thus aren’t as likely to put them at the wrong end of a Guardian, Bloomberg, or New Yorker greenwashing exposé.

(Quick note: Carbon Direct isn’t a disinterested party on this subject. It advises companies on their climate plans and carbon removal options. It’s also affiliated with, though operated separately from, Carbon Direct Capital, an investment firm that has funded startups that remove carbon dioxide or put it to use.)

The firm found that “quality-focused, removals-focused” purchases grew fivefold between 2021 and the third quarter of this year.

But what counts as quality? 

Carbon Direct says it can include carefully managed and closely monitored reforestation efforts or the burying of biochar, a charcoal-like material formed from plant matter that can sequester carbon in soil. It also noted emerging categories like carbon-sucking direct-air-capture factories and the use of trees and plants to produce energy, heat, or fuel while capturing and sequestering any resulting emissions (an approach known as “biomass with carbon removal and storage”).

But those are tiny categories today, and there are plenty of technical, economic, or carbon math challenges associated with most of those concepts as well. As the global carbon market continues to grow, expect plenty of continuing studies, stories, and spats over which approaches reliably counteract climate change and what the marketplace and governments will be willing to pay for such efforts.

In the meanwhile, companies looking to credibly shrink their climate footprint always have another, better option immediately at hand: directly cutting their pollution.

Related reading

Be sure to read Heidi Blake’s piece in the New Yorker, detailing the many problems with the Kariba project: “The Great Cash-for-Carbon Hustle.” 

A few years ago, I partnered up with ProPublica’s Lisa Song to produce a pair of pieces exploring how the befuddling tree math in California’s offset system could encourage cherry-picking practices that might dramatically overstate the climate benefits of such projects. 

Keeping up with climate

On Monday, the Washington Post’s Shannon Osaka highlighted the growing use of the terms like “climate emergency” and “climate crisis” in the scientific literature as researchers grow increasingly concerned over sharply rising temperatures. It also noted that the planet could cross the dreaded 1.5 ˚C warming threshold in about six years, at current rates of climate emissions.

In sad news, Professor Saleemul Huq, who directed the International Centre for Climate Change and Development, passed away over the weekend. Nature recently described him as the “unofficial leader” of the movement to compel the world’s heaviest historic climate polluters to recognize an obligation to pay developing nations for the damages wrought by climate change. Listen to his interview with Akshat Rathi of Bloomberg, who described him as “the greatest champion of climate vulnerable countries,” on the Zero podcast here.

Erecting far more transmission lines is one of the most important underappreciated pieces of any realistic plan to decarbonize the US electricity grids. But they got some much needed love this week, as the US Department of Energy announced it would spend $1.3 billion to help spur the development of a trio of major power lines across six states. As the New York Times’ Brad Plumer notes, however, far more needs to be done to build out the modern, interconnected network the nation needs.

Correction: This story has been updated to clarify that the decline in demand for offsets is a general trend.

How heat batteries promise a cleaner future in industrial manufacturing

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

Welcome back to The Spark!

I’m June Kim, a new fellow reporting on climate at Tech Review. Casey is off enjoying a well-deserved break, so this week I will be filling in for her. But rest assured, we are back with some fun news about a classic Spark topic: hot bricks! (a.k.a. thermal or heat batteries)

This is an exciting week for the heat-battery industry. Yesterday, Antora Energy, a California-based startup, announced its plan to open its first large-scale manufacturing facility in San Jose. While Antora has been producing modular heat batteries for a while, the company says this new factory will significantly increase its production capacity, which has the potential to help transition heavy industries away from fossil fuels.

I covered the announcement in detail in my recent Tech Review article. But for the newsletter today, let’s take a broader look at Antora’s announcement and the industry as a whole.

The “heat problem” in manufacturing industries

When we talk about decarbonization, we often think about electrifying everyday activities, such as transitioning from cars with internal-combustion engines to EVs, replacing gas stoves with induction cooktops, and upgrading oil furnaces to heat pumps.

However, a significant portion of global carbon emissions also stems from less visible sources: industrial manufacturing processes that produce essential materials like glass, steel, cement, and common goods like canned food and kitchen appliances. These processes require extremely high temperatures, often exceeding 1,000 or even 1,500 °C.

Currently, the primary source of this high heat is the combustion of fossil fuels. According to the International Energy Agency, industrial heat accounts for 20% of global emissions. Antora and other startups in the heat-battery sector are focusing on developing efficient, cleaner solutions for providing this essential heat.

We’ve covered thermal batteries before as a unique approach to decarbonizing heavy industry. While companies use slightly different methods to generate and store heat, the fundamental concept is pretty straightforward: renewable energy sources like wind and solar are used to heat relatively low-cost materials, such as solid carbon blocks (in Antora’s case), which are insulated until the stored heat can be discharged for manufacturing purposes. 

Antora’s new factory, slated to begin operations next year, will produce modular heat batteries that can be tailored to meet the specific needs of clients.

“Reindustrialization of the American heartland”

In my conversation with Justin Briggs, a cofounder and chief operating officer at Antora, he brought up his vision for the “reindustralization of the American heartland.” He believes that by offering cleaner heat to industries traditionally reliant on fossil fuels, heat batteries can help these sectors continue to grow while reducing emissions at the same time.

I found this perspective intriguing, as it’s often overlooked. Climate technologies aren’t just about the technology itself and what it enables; they also impact the people working in these industries or those directly affected by the technology.

Briggs’s theory is that people who already work with hot manufacturing processes won’t require much retraining to use Antora’s product, making it an appealing option for companies looking to take advantage of a boom in clean-energy funding. 

This boom is driven in part by government policies, like the Inflation Reduction Act, that provide funding to accelerate the transition away from fossil fuels. A major concern is how to help emissions-heavy industries like manufacturing and their workforces transition to cleaner processes without major disruption—such as shutting down, or bringing in entirely new workforces to operate new technologies. 

If there is a cleaner alternative that reduces emissions while allowing workers to continue applying their existing skills, it would alleviate the stresses like job losses and restructuring that some people fear might accompany such a substantial energy transition.

What lies ahead for the heat-battery industry?

Industry experts are closely monitoring the market and express excitement about what the future holds—but also emphasize that we’re still in the industry’s very early stages.

Blaine Collison, an executive director at the Renewable Thermal Collaborative, a coalition working to decarbonize industrial heat, told me that he believes heat batteries are “on the verge of substantial initial scaling.” 

His optimism is partly due to heat batteries’ flexibility and their capacity to address multiple issues simultaneously. For one thing, these batteries can relieve the pressure on the grid by storing excess renewable energy while providing a cleaner source of heat to industries that have traditionally relied on fossil fuels.

Antora’s announcement of its new plant is clear evidence of this trend. Rondo Energy, another startup producing heat batteries, already operates its own manufacturing facility and will be increasing its production capacity soon. And a German company, Kraftblock, has joined forces with companies like Pepsi to replace gas-fired boilers with heat batteries, reducing emissions from the production of items such as potato chips and canned drinks.

Heat batteries may not be the only solution to the industrial heat problem, but they are certainly an exciting field to keep a close eye on.

Related reading

Want to learn more about “hot bricks” and how thermal storage works? Read Casey’s story from earlier this year.

When it comes to “electrifying everything,” beer is in on the action too. MIT Tech Review’s senior energy editor, James Temple, wrote about how AtmosZero is using electrified boilers to reduce emissions at a brewery.

The idea of using hot bricks to store heat has been around for a while. Check out this story from 2017 about exactly that.

Keeping up with climate  

Investigations revealed that Occidental Petroleum’s big bet on carbon capture fell short of its big promises. It highlights the risk of greenwashing and of overreliance on CCS (carbon capture and storage) in meeting companies’ climate goals. (Bloomberg)

The economic rivalry between the US and China is expanding to minerals. That could have lasting consequences for EV expansion in the US. (Heatmap News)

More and more outdoor workers face dangerous working conditions from extreme heat. There are no good regulations in place to protect them. (Grist)

There is a lot of misinformation when it comes to climate solutions. Here’s a comprehensive fact-check on common misconceptions around electric vehicles. (Carbon Brief)

This video shows, step by step, how a New York–based company captures CO2 into a concrete block. (Canary Media)
Vermont’s Green Mountain Power is doing something that few utility companies do: giving out large batteries to customers to prevent blackouts. (The New York Times)

Plastic is a climate change problem. There are ways to fix it.

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

Plastic is a huge problem. There, I found it: the most uncontroversial thing I could possibly say to start a newsletter. 

We’ve all seen the images that illustrate the scale of the challenge facing us with plastic waste: a sea turtle eating a plastic bag, people walking through mountains of bottles, and even illustrations showing the sheer size of the Great Pacific Garbage Patch

But there’s an often-overlooked angle to all this that goes beyond the landfill. Plastics are a big, and quickly growing, problem for the climate. They account for about 3.4% of global greenhouse-gas emissions—more than the entire aviation industry. 

I was thinking about this as I read this gripping feature story on plastics by Douglas Main, which was published last week online and is the cover story for our upcoming magazine issue. You should give the story a read for an outlook on the problem, and what it might take to fix it. And for the newsletter this week, let’s dig into how plastic contributes to greenhouse-gas emissions, and where we go from here. 

What’s the deal with plastic and climate change? 

Plastics fall into a class of materials called petrochemicals, meaning they’re made using fossil fuels. The category also includes products like fertilizers and laundry detergents. 

Fossil fuels are used as a feedstock, or starting ingredient, in plastics production, and they are also used for energy to power the manufacturing process. Plastic made up around 6% of global oil demand as of 2014, according to a report from the World Economic Forum

That number could get much worse, and fast. Plastic consumption could nearly triple by 2060. Add all that up, and plastics could make up 20% of global oil demand or more by 2050. 

So the growing tidal wave of plastic will be a problem for pollution and for waste management. But all that oil demand could also be a roadblock for our climate goals. 

Let’s back up, though, because if you’re anything like me (always craving the details), you’re probably wondering how, exactly, plastic contributes to climate change. Well, let me count the ways.

  • Most plastics are derived from natural gas. Extracting and transporting that natural gas leads to accidental leaks as well as purposeful releases of both carbon dioxide and methane. In the US alone, extracting and transporting natural gas for plastics produces between 12.5 and 13.5 million metric tons of carbon dioxide each year.

So where do we go from here? 

Unfortunately, the problem is so pervasive that there’s no one solution. Of all the plastic we make, 72% ends up in landfills or as litter, while 19% is incinerated and, as of 2019, only 9% is recycled. 

An ideal world would probably be one where much more of the plastic that we use can be reused or recycled in an energy-efficient way. 

Some of the solution comes down to structural changes, like setting up robust collection infrastructure for plastics that are easily recycled today. But packaging makes up only about a third of the plastic we use. And while conventional recycling methods can handle Diet Coke bottles and milk jugs, a lot of other plastic is less visible, and less easily recycled. (Think pleather skirts, wet wipes, or umbrellas—and no, you can’t put any of those in a recycling bin.)

New recycling methods could help remove some of the barriers holding back recycling today. These new technologies, like enzymatic and chemical recycling, might make the process more feasible for more products by cutting down the need to clean and sort waste. 

Ultimately, though, policy will likely be the key to tying all this together, since plastic is cheap today—and recycling often isn’t. 

Plastic is everywhere, and the solution to this massive waste problem is … complicated. Read the full feature story from Douglas Main for more. And for more on the problem of plastic, as well as some of the potential solutions, check out some of our reporting from the vault. 

Related reading

Microplastics are everywhere, and we don’t really know what that means for our health, as my colleague Jess Hamzelou outlined in a story last year. 

Chemists are inventing new ways to recycle, including one method that could tackle a mixture of some of the most common single-use plastics. Read more in my story from last year.

Biologists are getting into the game too—Carbios, a French company, wants to use enzymes to chew up plastics. Check out the full story from 2021. 

Keeping up with climate  

Several popular EVs are now cheaper than the average new gas-powered vehicle in the US. It’s a major tipping point for electric transportation. (Canary Media)

Some experts argue that it’s time to put solar-panel waste in context. This is a great graphic comparing the volume of module waste to things like e-waste, plastics, and coal ash. (Inside Climate News)

→ Some companies are working on setting up systems to recycle solar panels today, before more of them reach the end of their lives. (MIT Technology Review)

More than 50 million miles of power lines and other infrastructure need a major upgrade. Aging grids could hold back countries around the world from reaching climate goals. (The Verge)

The US announced seven projects, or “hubs,” as part of a $7 billion program to advance hydrogen fuel. (Washington Post

→ Hydrogen could help clean up sectors like heavy industry, but most of the fuel is generated using fossil fuels today. Some activists are skeptical of some of the projects that were chosen for the funding. (The Guardian)

Danish wind giant Ørsted just gave a $100 million guarantee that its project in New Jersey will be online by the end of 2025. How’s that for putting your money where your mouth is? (Electrek)

Energy Vault started out with a disruptive idea: storing energy using cranes and massive blocks. Now the startup has pivoted, and largely sells the batteries it set out to displace. (Canary Media)

→ Here’s why some companies are continuing to look beyond batteries for energy storage. (MIT Technology Review

Plastic is a climate change problem. There are ways to fix it.

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

Plastic is a huge problem. There, I found it: the most uncontroversial thing I could possibly say to start a newsletter. 

We’ve all seen the images that illustrate the scale of the challenge facing us with plastic waste: a sea turtle eating a plastic bag, people walking through mountains of bottles, and even illustrations showing the sheer size of the Great Pacific Garbage Patch

But there’s an often-overlooked angle to all this that goes beyond the landfill. Plastics are a big, and quickly growing, problem for the climate. They account for about 3.4% of global greenhouse-gas emissions—more than the entire aviation industry. 

I was thinking about this as I read this gripping feature story on plastics by Douglas Main, which was published last week online and is the cover story for our upcoming magazine issue. You should give the story a read for an outlook on the problem, and what it might take to fix it. And for the newsletter this week, let’s dig into how plastic contributes to greenhouse-gas emissions, and where we go from here. 

What’s the deal with plastic and climate change? 

Plastics fall into a class of materials called petrochemicals, meaning they’re made using fossil fuels. The category also includes products like fertilizers and laundry detergents. 

Fossil fuels are used as a feedstock, or starting ingredient, in plastics production, and they are also used for energy to power the manufacturing process. Plastic made up around 6% of global oil demand as of 2014, according to a report from the World Economic Forum

That number could get much worse, and fast. Plastic consumption could nearly triple by 2060. Add all that up, and plastics could make up 20% of global oil demand or more by 2050. 

So the growing tidal wave of plastic will be a problem for pollution and for waste management. But all that oil demand could also be a roadblock for our climate goals. 

Let’s back up, though, because if you’re anything like me (always craving the details), you’re probably wondering how, exactly, plastic contributes to climate change. Well, let me count the ways.

  • Most plastics are derived from natural gas. Extracting and transporting that natural gas leads to accidental leaks as well as purposeful releases of both carbon dioxide and methane. In the US alone, extracting and transporting natural gas for plastics produces between 12.5 and 13.5 million metric tons of carbon dioxide each year.

So where do we go from here? 

Unfortunately, the problem is so pervasive that there’s no one solution. Of all the plastic we make, 72% ends up in landfills or as litter, while 19% is incinerated and, as of 2019, only 9% is recycled. 

An ideal world would probably be one where much more of the plastic that we use can be reused or recycled in an energy-efficient way. 

Some of the solution comes down to structural changes, like setting up robust collection infrastructure for plastics that are easily recycled today. But packaging makes up only about a third of the plastic we use. And while conventional recycling methods can handle Diet Coke bottles and milk jugs, a lot of other plastic is less visible, and less easily recycled. (Think pleather skirts, wet wipes, or umbrellas—and no, you can’t put any of those in a recycling bin.)

New recycling methods could help remove some of the barriers holding back recycling today. These new technologies, like enzymatic and chemical recycling, might make the process more feasible for more products by cutting down the need to clean and sort waste. 

Ultimately, though, policy will likely be the key to tying all this together, since plastic is cheap today—and recycling often isn’t. 

Plastic is everywhere, and the solution to this massive waste problem is … complicated. Read the full feature story from Douglas Main for more. And for more on the problem of plastic, as well as some of the potential solutions, check out some of our reporting from the vault. 

Related reading

Microplastics are everywhere, and we don’t really know what that means for our health, as my colleague Jess Hamzelou outlined in a story last year. 

Chemists are inventing new ways to recycle, including one method that could tackle a mixture of some of the most common single-use plastics. Read more in my story from last year.

Biologists are getting into the game too—Carbios, a French company, wants to use enzymes to chew up plastics. Check out the full story from 2021. 

Keeping up with climate  

Several popular EVs are now cheaper than the average new gas-powered vehicle in the US. It’s a major tipping point for electric transportation. (Canary Media)

Some experts argue that it’s time to put solar-panel waste in context. This is a great graphic comparing the volume of module waste to things like e-waste, plastics, and coal ash. (Inside Climate News)

→ Some companies are working on setting up systems to recycle solar panels today, before more of them reach the end of their lives. (MIT Technology Review)

More than 50 million miles of power lines and other infrastructure need a major upgrade. Aging grids could hold back countries around the world from reaching climate goals. (The Verge)

The US announced seven projects, or “hubs,” as part of a $7 billion program to advance hydrogen fuel. (Washington Post

→ Hydrogen could help clean up sectors like heavy industry, but most of the fuel is generated using fossil fuels today. Some activists are skeptical of some of the projects that were chosen for the funding. (The Guardian)

Danish wind giant Ørsted just gave a $100 million guarantee that its project in New Jersey will be online by the end of 2025. How’s that for putting your money where your mouth is? (Electrek)

Energy Vault started out with a disruptive idea: storing energy using cranes and massive blocks. Now the startup has pivoted, and largely sells the batteries it set out to displace. (Canary Media)

→ Here’s why some companies are continuing to look beyond batteries for energy storage. (MIT Technology Review

These Chinese companies prove green tech can be profitable

This story first appeared in China Report, MIT Technology Review’s newsletter about technology in China. Sign up to receive it in your inbox every Tuesday.

Living through the epic rainfall that flooded New York City a few weeks ago was nothing if not a reminder of just how urgently we need to tackle the climate crisis.

Fortunately, that was the focus of our ClimateTech summit last week, where my colleagues invited scholars, entrepreneurs, policymakers, and investors to the MIT campus to discuss the technologies that will be vital in combating climate change.

At the event, we also released a brand-new list that we have worked on for months: 15 Climate Tech Companies to Watch. These are the companies from all around the world that we think could have a significant impact on the future of our climate, either by enabling new energy sources like solar and nuclear, making electricity-powered products more versatile and efficient, or revamping the most ordinary goods in our lives, like food and cement. 

Among them are two Chinese companies you should know about. One is BYD, the world’s top electric-vehicle maker, which has just produced its 500 millionth EV! The other is GEM, which stands for Green Eco-Manufacture; it makes the supply chain for batteries more environmentally friendly by recycling the minerals in them.

For the list, I dug into these two companies—their histories, key products, and technological advantages, as well as the potential challenges they face. I’ll give you two quick previews in this newsletter, but I highly encourage you to go read more about them and the other 13 companies with the potential to change how we live.

🚗 BYD

What it does: BYD’s signature battery product—the Blade Battery—is cheaper, safer, and more durable than its peers. It’s so good that it powers both the carmaker’s own electric vehicles and Tesla’s. The company also stands apart because it handles or makes almost everything in the EV supply chain, from raw minerals to car chips. Its technological and manufacturing advantages make it one of the most competitive providers of EVs that are both reliable and, crucially, affordable. 

Why it’s important: The world needs a lot of different kinds of electrified transportation to replace the demand for fossil fuels, and BYD is making cars, buses, and even trains. The variety and affordability of its products makes transitioning to clean energy more feasible in many regions of the world.


♻ GEM

What it does: Every day, tons of electronics and batteries are thrown away in China. GEM collects them and remakes them into new products or extracts the critical minerals from them to use again. A big part of its business in recent years has been recycling thousands of tons of EV batteries, which are either reused in less demanding scenarios like energy storage or crushed and turned into mineral powders that can be made into new batteries.

Why it’s important: EVs might be great for the climate, but their manufacturing process isn’t always. Particularly, the mining process for battery materials is often dangerous to both the environment and the workforce. As a result, efficient recycling of batteries will be vital to making the EV industry more climate friendly. 

As my colleague James Temple, our senior editor for energy, wrote in the introductory essay, our list offers a rare optimistic outlook on the future. It’s easy to feel that humanity is doomed when people talk about climate change, because it feels as if politics and inertia are getting in the way of problem solving. But it’s still important to talk about what the solutions could look like.

BYD and GEM in particular offer a peek at a future in which climate solutions are also profitable. BYD made $2.4 billion in profits last year, while GEM—which admittedly operates on a different scale—made $167 million in 2022, a jump of more than 60% from the year before.

This may provide inspiration for players outside China. If the Chinese EV market has proved that ordinary consumers can be genuinely interested in choosing electric cars over gas-powered ones, entrepreneurs and governments around the world know that they, too, can grow their own “BYD” or “GEM.” And that could draw more talent and investment into climate technologies.

Obviously, corporate solutions are only one part of the global climate change response, and on the list we made sure to spotlight the challenges each company faces. But I do feel that this list, which will be updated every year, provides a boost of confidence for people who want to see the world rise to the climate challenge. If that’s also what you need to keep moving forward on this Tuesday afternoon, come learn more about the other companies here.

Maybe this is too early, but do you want to nominate a company that you believe should be on this list next year? I’m all ears at zeyi@technologyreview.com.

Catch up with China

1. The Wagner Group bought two high-resolution observation satellites from a Chinese firm in 2022, allowing the Russian mercenaries to access surveillance images for its campaigns in Ukraine and Africa. (AFP)

2. In meetings with the Biden administration, American chip companies have pushed back on further chip restrictions, warning that they could derail plans to build new semiconductor factories in the US. (New York Times $)

3. Chinese chip manufacturer SMIC made $1.5 billion in revenue from American semiconductor-design companies in 2022—a fifth of its overall sales—despite being blacklisted by the US government. (Wall Street Journal $)

  • The US Commerce Department added 42 more Chinese companies to its export blacklist on Friday, saying they aided Russia in the war in Ukraine. (South China Morning Post $)

4. For Chinese EV startup Nio, selling one car means losing $35,000. But government backing allows companies like Nio to withstand such losses and keep growing. (New York Times $)

5. Chinese ultra-fast-fashion company Shein appointed a former SoftBank Group executive as its vice chairman. He’s tasked with diversifying the company’s supply chain beyond China. (Wall Street Journal $)

6. A Hong Kong man was sentenced to four months in prison for importing “seditious” children’s books that portrayed the city’s democracy supporters as sheep defending their village from wolves. (The Straits Times)

Lost in translation

Since China softened its zero-covid policies almost a year ago, many Chinese companies that offer PCR test products have been forced to evolve. One company, however, has made the indecipherable decision to enter the market for precooked meals. 

According to the Chinese publication Lanjing Caijing, Shenzhen Nuclear Gene Technology, a company with more than 30 testing labs across China, was at the center of a controversy last year after it was repeatedly fined by local governments for fabricating test results and not adhering to technical standards. Then in May, the company incorporated a subsidiary called Wuhan Nuclear Agriculture Technology, which now works on producing frozen meals based on rice. 

The only connection between PCR tests and precooked meals is that both have been extremely trendy businesses. In recent years, the popularity of precooked food—often complicated, time-consuming dishes like grilled whole fish—has risen significantly in China among young people who don’t like to cook. The domestic market is around $58 billion now, and it’s predicted to grow to $148 billion by 2026. But people are also questioning whether it’s acceptable for restaurants to take a shortcut by turning to precooked food packages instead of developing their own recipes.

One more thing

A new study by Chinese researchers analyzed the relationship between a stock fund’s performance and the fund manager’s “facial attractiveness.” And yes, the paper actually includes a few examples of real manager faces that were given low scores by a deep-learning model for “facial beauty prediction.” Yikes. Oh, and their conclusion? “Funds with facial[ly] unattractive managers outperform funds with attractive managers by over 2% per annum.”

Think that your plastic is being recycled? Think again.

On a Saturday last summer, I kayaked up a Connecticut river from the coast, buoyed by the rising tide, to pick up trash with a group of locals. Blue herons and white egrets hunted in the shallows. Ospreys soared overhead hauling freshly caught fish. The wind combed the water into fields of ripples, refracting the afternoon sun into a million diamonds. From our distance, the wetlands looked wild and pristine.

Further inland, we left the main river channel and paddled into the muddy heart of the marsh—and began to notice all manner of plastic waste. Big things appeared first: empty bags of chips tangled in the reeds, grocery bags just beneath the surface, Styrofoam trays covered in mud, plastic bottles mixed in with other debris. 

As we traveled through the marsh, we kept seeing more, and increasingly tiny, bits of plastic. Not just straws, lighters, combs, and fishing line, but unidentifiable and seemingly never-ending small pieces, ranging in size from as big as my hand to as small as grains of sand. You could stay in the hinterlands plucking trash and never leave. Even in one of the less-polluted parts of the East Coast, outside a city with organized waste management and a recycling system, the land and water are awash in plastic waste. 

Plastic, and the profusion of waste it creates, can hide in plain sight, a ubiquitous part of our lives we rarely question. But a closer examination of the situation can be shocking. 

Indeed, the scale of the problem is hard to internalize. To date, humans have created around 11 billion metric tons of plastic. This amount surpasses the biomass of all animals, both terrestrial and marine, according to a 2020 study published in Nature

Currently, about 430 million tons of plastic is produced yearly, according to the United Nations Environment Programme (UNEP)—significantly more than the weight of all human beings combined. One-third of this total takes the form of single-use plastics, which humans interact with for seconds or minutes before discarding. 

A total of 95% of the plastic used in packaging is disposed of after one use, a loss to the economy of up to $120 billion annually, concludes a report by McKinsey. (Just over a quarter of all plastics are used for packaging.) One-third of this packaging is not collected, becoming pollution that generates “significant economic costs by reducing the productivity of vital natural systems such as the ocean.” This causes at least $40 billion in damages, the report states, which exceeds the “profit pool” of the packaging industry. 

These numbers are understandably hard to make concrete sense of, even at the scale of specific companies, such as Coca-Cola, which produced 3 million tons of plastic packaging in 2017. That’s the equivalent of making 200,000 bottles per minute.

Notably, what doesn’t get reused or recycled does not chemically degrade but rather becomes a fixture of our world; it breaks apart to form microplastics, pieces smaller than five millimeters in diameter. In the past few years, scientists have found significant quantities of microplastics in the further reaches of the ocean; in snow and rainfall in seemingly pristine places worldwide; in the air we breathe; and in human blood, colons, lungs, veins, breast milk, placentas, and fetuses. 

One paper estimated that the average person consumes five grams of plastic every week—mostly from water. About 95% of the tap water in the United States is contaminated. Microplastics are also widely found in beer, salt, shellfish, and other human foods. Significant quantities of these plastic bits have turned up in common fruits and vegetables, as one recent study in Italy found.

All this meant that our journey in the kayaks, picking up plastic waste along the way, looking after our local environment, was—while a genuinely helpful service to our fellow humans—only fixing a symptom of a larger problem.

The solution to that problem lies further upstream: to address plastic pollution, those who produce plastics need to pay for the damage it causes, and the world will also have to make less of it. We’ll have to develop better, more recyclable products. We’ll also have to find sustainable alternatives and increase what ecologists call circularity—keeping those products in use as long as possible and finding ways to reuse their materials after that.  

While these are not exactly new ideas, they’ve received renewed attention from global policymakers, innovators, and companies looking to make a sustainable future profitable.

Making less is the most important goal—and the most politically charged one, given the immense profits and political power of plastic producers. “What’s the best way to manage waste?” says Jenna Jambeck, an environmental engineer at the University of Georgia. “To not produce it in the first place.” 

Because consider this: most of the plastic we make, 72%, ends up in landfills or the environment, according to a 2022 report from the Organisation for Economic Co-operation and Development. Only 9% of the plastic ever produced has been recycled, and 19% has been incinerated. Some of it reaches the sea; estimates suggest that between 8 million and 11 million tons of plastic waste enter the ocean each year. According to the National Academy of Sciences, that’s the equivalent of dumping a garbage truck of plastic into the ocean every minute.

“A scourge on a planetary scale”

Plastic production has grown dramatically in recent years; in fact, half of all plastics in existence have been produced in just the last two decades. Production is projected to continue growing, at about 5% annually. If current trends continue, humans will have produced 34 billion tons of plastics by 2050—three times the current total.

Plastic pollution—“a scourge on a planetary scale,” as French president Emmanuel Macron has put it—most affects those least able to deal with its consequences. Noting that the plastic industry generates upward of $700 billion a year in revenues, the UN Environment Programme also concluded that the industry “inflicts a heavy burden on human health and environmental degradation, with the poorest in society facing the highest impacts whilst contributing the least to plastic over-consumption and waste.” 

This is true at every stage of plastic’s life cycle. Manufacturing plants are concentrated in communities of color—such as in Louisiana, in an area along the Mississippi River often called “Cancer Alley,” which is home to nearly 150 oil refineries, plastics plants, and chemical facilities. Such plants emit air pollution that raises risks of cancer and other diseases. A panel of UN human rights experts said the situation amounts to a “form of environmental racism [that] poses serious and disproportionate threats to the … human rights of its largely African American residents.”

This pollution also disproportionately harms poor and developing countries that produce little or no plastic, such as those in Africa, the Pacific, and elsewhere. 

“We have to dramatically reduce the amount of plastic that we make. Everything else is second order.”

Neil Tangri, researcher, University of California, Berkeley

Solutions such as recycling and reuse cannot deal with this much waste, says Marcus Eriksen, a marine scientist and cofounder of the 5 Gyres Institute, which studies plastic pollution. “There have to be drastic cuts in production,” he says, especially of single-use plastics.

Dozens of studies and institutional reports—from the likes of the United Nations, the National Academy of Sciences, and the Pew Charitable Trusts—conclude that continued increases in production of virgin plastics will overwhelm actions to combat the problem. 

Alarmed by such data, and animated by growing public awareness of the issue, the United Nations Environment Assembly resolved at a March 2022 meeting to begin working toward a global treaty to end plastic pollution, forming an intergovernmental negotiating committee to accomplish this goal. This group has gathered twice and will meet another three times before the treaty is finalized in late 2024. All parties agree that it will be binding and will put forth a range of mandatory and voluntary approaches. Some have likened its importance to that of the Paris accords on climate change. 

Few details have yet been ironed out, but the majority of countries agree that a primary way to prevent plastic from polluting the environment is to make less of it. 

Neil Tangri, a researcher at the University of California, Berkeley, and a member of an informal advisory group called the Scientists’ Coalition for an Effective Plastics Treaty, strongly agrees: “We have to dramatically reduce the amount of plastic that we make. Everything else is second order.”  

At the second round of talks in Paris this summer, international leaders made this desire clear. Humanity has a duty to begin “[reducing] the production of new plastics,” said Macron, “and to ban as soon as possible the most polluting products.” Representatives from many other countries, from Ghana to Mauritius to Norway, argued the same.

Yet the countries that have not yet embraced limits on production include the biggest producers, such as China and the United States, though they are participating in the process.

Limits or levies on production are not currently being considered as a solution, according to a member of the US State Department (which coordinates the country’s delegation at the UN meetings), who was not authorized to speak publicly on the matter.

“We really need to find a way to bring everybody on board,” this person said, and such “supply side” changes might be unpalatable to certain countries. “We want the strongest and most ambitious obligations that we can get consensus around.” 

The American Chemistry Council, the trade group that represents plastic producers, has also not embraced such policies. Limits or levies could “affect all sectors of the economy” and “create a lot of unintended consequences for those least able to afford it,” says Stewart Harris, the group’s senior director of global plastics policy.

Inspiration from nature

How can we make less plastic, and deal with the pollution that already exists? Circularity may be the most promising answer. Circularity can mean reusing or recycling plastics, or employing alternatives that can be reused or recycled as well. Proponents often describe the concept as an attempt to imitate the natural world, where there is no waste; everything has a use. 

Ghana and several other countries worldwide are currently working to establish a country-level circular economy for plastic, says Oliver Boachie, who chairs the African Group of Negotiators for the UN treaty-making process and is an advisor to the Ghanaian government. This will involve gradually banning single-use plastics that have little reuse value, such as thin plastic films used in food packaging, as well as instituting robust collection, reuse, and recycling efforts.  

Many existing waste management techniques have already been shown to reduce plastic pollution and demand for plastic in the first place. But they are energy and time intensive.

In Tanzania, for instance, a group called Nipe Fagio (“give me the broom” in Swahili) runs waste management and recycling systems that have reduced landfill waste by 75% to 80% in neighborhoods in several cities. Waste collectors visit households once a week to gather four different varieties of trash before transporting it to a collection center. There, workers further sort the recyclable materials for sale, turn organic waste into compost and chicken feed, and send the rest to the landfill. 

“The amount of plastic on our planet—it’s like one big oil spill.”

Katrina Knauer, polymer scientist, National Renewable Energy Laboratory

To help fund programs like Nipe Fagio, and to help them grow on a much larger scale, many countries are looking to extended producer responsibility (EPR) plans, policies requiring producers of plastic bottles, packaging, and the like to provide some funding to support management of these materials after their initial use. Just about every country in Europe has an EPR scheme, and Ghana too is working to create a national program. 

Currently, however, EPR schemes are limited in their impact, since those that have done the most to embrace and pay for them are bottlers and manufacturers of products like beverages, known as “midstream” producers. 

To make a bigger difference, the programs need to bring in the “upstream” producers—those that create virgin plastics and polymers, like Exxon, Dow, Sinopec, and Saudi Aramco. An overwhelming 98% of plastics come from fossil fuels, and plastic production and use accounts for 3.4% of humanity’s carbon emissions. Many big plastic producers—such as the world’s biggest, ExxonMobil—are highly entangled with Big Oil or representatives of it. “Beyond a physical pollution crisis, it’s becoming an energy crisis,” says Katrina Knauer, a polymer scientist with the National Renewable Energy Laboratory. “The amount of plastic on our planet—it’s like one big oil spill.”

man in a kayak paddles through a natural landscape filled with plastic objects

MICHAEL BYERS

Nevertheless, these companies do not currently pay for the consequences of plastic pollution, Boachie says, adding: “We believe that those who are [most] heavily responsible for the proliferation of plastics around the world are the polymer and virgin plastics producers, and they should be responsible for providing funds for countries to manage the plastic waste that they create.” 

Ghana has introduced a proposal to the UN to extend the “polluter pays” principle to these polymer producers, and Boachie says he believes elements of it will find their way into the final UN agreement. That would “allow us to mobilize a significant amount of resources to provide all countries the means to manage their plastics.” 

But Ana Lê Rocha, the executive director of Nipe Fagio in Tanzania, argues that waste management is not actually a solution to the pollution crisis but merely a way to deal with a symptom. “We need to remember that the main issue—the main goal of the UN treaty—must be to reduce production,” she says.

Obstacles to circularity

Reuse is the most energy-efficient version of circularity. Collecting, cleaning, and refilling glass bottles was once common and widespread, and it remains a small but significant part of the economy in many countries. It’s also the norm in many places to buy foods in bulk and transport them in reusable bags. 

But one of the biggest obstacles to circularity is a lack of infrastructure, says Ellie Moss, CEO of a company called Perpetual, which is “looking to stand up a whole reuse ecosystem [at] the scale of a small city” to change that. Four cities, to be exact—Galveston, Texas; Hilo, Hawaii; Ann Arbor, Michigan; and Savannah, Georgia. In Galveston, where Perpetual is furthest along, it is working to create a system whereby metal beverage containers can be reused by many restaurants in the city, saving large amounts of plastic and creating new green jobs. It hopes to hire companies that will have the program up and running there by the middle of 2024.  

“If we want reuse to work, it has to happen at scale, and the community has to have a voice in how the system is set up,” Moss says. 

Other companies are also exploring refill and reuse schemes. One Chilean company, Algramo, founded in 2013, allows customers to buy various liquid products such as shampoo, laundry detergent, and soaps in reusable plastic bottles, purchased from a large network of filling stations. The company has the explicit goal of eliminating the “poverty tax,” the penalty that lower-income people often have to pay for not being able to buy in bulk; it charges the same unit price for each item regardless of how much volume is sold. Algramo (which means “by the gram” in Spanish) has expanded throughout Chile and is now opening locations in the United Kingdom. 

These schemes can be thought of as a type of system redesign, requiring a radical shift in infrastructure and behavior. We spent nearly a century “building out an exceptionally complex linear economy for these materials,” says Kathryn Beers, a polymer chemist at the National Institute of Standards and Technology, who leads an institute-wide program geared toward facilitating a circular economy. But we never “built the second half of the system” that would make it circular, she says. “It needs all the complexity and nuance of the front half—and that takes time.” 

Awareness helps prompt such shifts—viral moments such as the video of a turtle with a straw in its nose that circulated widely in 2017 are credited with greatly increased demand for straw bans or alternatives. But for real change, policies are necessary, including bans as well as fees and taxes. Research shows that all of the above can greatly reduce plastic waste.

Redesigning products to use less plastic and to be more easily reused or recycled is also critical, said Inger Andersen, executive director of UNEP, at the opening of the second meeting. “Is there a good reason that businesses can’t look at refillable bottles, reusable packaging, take-back services, and so on? Of course not,” she said.

Some manufacturers have already made strides to use less plastic in their products. Such incremental changes help but will still not be enough. 

To solve the pollution crisis, many “unnecessary and problematic” plastics—such as polyvinyl chloride, or PVC—will have to be eliminated and replaced with more sustainable alternatives, says Imari Walker-Franklin, a research chemist who published a book with MIT Press on plastics earlier this year. PVC, which is often used to make pipes and other materials, breaks down into toxic chlorine-­containing components and cannot be recycled. 

One of the most promising replacements is a substance called PHA, or polyhydroxyalkanoate, a type of bio-polyester made by bacterial fermentation of sugars and lipids. “We’d love to see an all-PHA future,” NREL’s Knauer says, in part because the plastic can degrade into nontoxic components over the course of months. 

It’s important to note, however, that producing more sustainable plastics is difficult, and most of the so-called “biodegradable” and “compostable” plastics on the market biodegrade only in industrial reactors. Industrial composters, for example, reach temperatures that cannot be achieved in people’s yards or homes. Moreover, most of these materials are not actually less toxic than conventional plastics, says Bethanie Almroth, an ecotoxicologist with Sweden’s University of Gothenburg. 

“Bioplastics are plastics. And they are usually quite harmful,” Lê Rocha agrees. 

For that reason, it’s vital that bio-based plastics don’t just become a replacement. 

“The best alternative is reusable systems, because replacing a single-use plastic with a single-use bioplastic won’t change the problem,” says Andrea Lema, an advocate for zero-waste systems in Quito, Ecuador, who’s involved in the UN process.  

Non-plastic alternatives, such as packaging made from fungi, hemp, and other environmentally friendly materials, may hold the most promise in the long term, but in the short term they are generally not economically viable given how cheap plastic is. That could change with the right set of progressive policies and economic incentives.

How much plastic is actually being recycled?

In the United States, only about 5% to 6% of plastics are being recycled each year—a paltry rate. As with reuse, increasing this rate should decrease the demand for virgin polymers. The biggest problem is a shortage of the costly infrastructure that’s required, says Kate Bailey, chief policy officer with the Association of Plastic Recyclers. 

The further you get from large cities, the less recycling there is, because rural areas can’t afford it, says Knauer: “We need more state and federal incentives to build an infrastructure for collection.” 

The vast majority of “recycling” involves grinding up plastic, melting it down, and re-forming it. Doing this type of mechanical recycling well involves properly sorting and cleaning materials, which can be time intensive and expensive. It’s also very difficult or impossible to recycle many types of plastic more than once without causing the material to acquire defects and contaminants. In fact, many recycled materials commonly contain significant levels of unwanted toxins, Almroth says. 

Local policies can make a huge difference in encouraging recycling. In Maine and Oregon, which have invested in recycling programs, up to 80% of bottles made from PET (polyethylene terephthalate) are recycled, Bailey says. In some states, such as in the South, that percentage is in the single digits. The national average for these materials is 30%, which is a shame, Bailey says, because 100% of PET bottles could be recycled.

Some states, though, have instituted policies that actually hinder progress. Industry lobbyists are increasingly helping to institute state-level laws that prevent bans or limits on the use of plastics, especially plastic bags. Over a dozen states currently have preemptive laws on the books to prevent ordinances limiting plastics, though some of the same states are also trying to pass anti-preemption laws

Fundamentally, to solve the plastic pollution crisis, society must address the root problem: plastics are shockingly profitable and cheap.

One way to improve recycling—and prevent unwanted health effects and environmental problems—would be to simplify and standardize the process of plastic production, Walker-Franklin says. Currently, more than 10,000 chemicals are used in the production of plastics, and upward of 3,200 have “one or more hazardous properties of concern,” with the potential to harm humans and wildlife, according to UNEP. Very little or nothing is known about the health effects or basic properties of thousands more. 

Another way to improve recycling would be to find a way to process mixed polymers into useful materials instead of having to sort everything first. One promising technique, described in an October 2020 study coauthored by Julie Rorrer, then a researcher at MIT, can process polypropylene and polyethylene into propane. Another process, described in a study published in Science the same month, can break down mixtures of common consumer plastics and re-form them into a bioplastic, in part by using an engineered soil bacterium. 

Others dream of a day when microbes could be used to recycle or clean up all this waste. One French biotechnology company, Carbios, opened a pilot plant in September 2021 to break down and recycle PET using an engineered form of an enzyme first discovered in compost; it’s currently building a full-scale facility due to open in 2025. In theory, this type of recycling could be truly circular, as it wouldn’t require the high heat that normally causes much of the degradation seen with recycled plastics. 

A microbe discovered in Japan in 2016, called Ideonella sakaiensis, produces two other enzymes that can break down PET. This microbe is especially intriguing because it is the first one identified that can live solely upon plastic as a food source. MIT researcher Linda Zhong-Johnson is working to create more efficient versions of the enzymes by tinkering with microbial genes. So far, one mutation she has identified creates an enzyme that appears to be up to 30% more efficient than its original wild form. 

Reducing demand

Fundamentally, to solve the plastic pollution crisis, society must address the root problem: plastics are shockingly profitable and cheap because polymer producers do not pay for the abundant harm they cause. Any solution will require policy and behavioral changes small and large. 

As an example of the former, policymakers in Washington, DC, instituted a five-cent charge on plastic bags that began in 2010. Estimates suggest that the number of bags used quickly dropped—by more than half in the months after it was instituted—and the quantity found in local waterways dropped between 30% and 70% thereafter. Seemingly tiny changes like this can add up to reduce demand and decrease pollution. Meanwhile, a global EPR scheme would be an example of a major shift, and the UN process is seeking other big changes to the status quo.

Of course, such changes will be difficult, but they can be instituted in gradual ways that don’t hurt businesses, Boachie says: “My hope emanates from the fact that what we are talking about is not something that will impede the growth and success of any company.” On the contrary, he adds, creating incentives for alternatives will spur innovation and create new jobs. 

A lot of such innovation will doubtless be needed to reverse situations like what I saw in the Connecticut salt marsh. At one point we came upon a couple of osprey nests from which plastic strands billowed, unwittingly collected by the birds as they built their nests. Later, we found a vinyl firehose lodged intractably in the muck between oysters. I couldn’t pull it out, nor could I cut into it with a small pocketknife. We reluctantly left it behind. 

Douglas Main is a journalist and former senior editor and writer at National Geographic.

How AI could supercharge battery research

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

During one of the final sessions at our ClimateTech event last week, I got to hear about how AI could help develop battery materials for future electric sports cars.  

This came during a discussion with Venkat Viswanathan about the potential for electric aviation—an exciting prospect as well as a huge challenge, given the steep demands on batteries during flight. Today’s batteries simply can’t cut it in the skies. 

In our discussion, Viswanathan said one of the reasons he saw hope for electric aviation is the potential of AI to speed up battery research. In fact, he cofounded a startup called Aionics in 2020 to bring AI into battery development. 

On stage at ClimateTech, Viswanathan announced a new research partnership that he says could make AI a key force in developing future EV batteries. The deal is between Aionics and Cellforce, a German battery maker that’s a subsidiary of Porsche. Aionics will help Cellforce design new electrolyte materials, in the hopes of making better batteries.

I’m still buzzing about this session and all my other chats from ClimateTech, so for the newsletter this week, let’s dive in a bit deeper and see how AI could help drive progress in batteries. 

Hitting the gas

We need better batteries. EVs that can charge faster and hold more energy could help get more fossil-fuel-powered cars off the roads. And for some industries, like aviation, significant technical progress in battery chemistry will be necessary to get newer, cleaner tech off the ground. 

But new batteries dreamed up in a lab have a long journey before they can be produced at large scales. It’s a road that can take well over a decade to traverse. 

During our session at ClimateTech, Viswanathan outlined this problem and pointed to the fitness tracker on his wrist, which contained a battery made by Sila. Its novel anode is made with silicon, which helps pack more energy into the device. Landing on the battery chemistry for this tiny product took over 55,000 iterations, according to the company

That’s a pretty typical situation for battery developers—and a big bottleneck for new technologies, said another Aionics’s co-founder, Austin Sendek, in a call before the event. “There’s so much urgency around batteries and climate tech in general … and this trial-and error approach of years past just won’t work,” Sendek says. 

The problem is, there’s an almost unfathomable number of potential materials, and combinations of materials, to use in batteries. Sendek puts the number of commercially- available chemicals that could be used in the billions. “It’s way too many for us to know what to do with,” he says. 

Aionics is working to use AI tools to help researchers find better battery chemistries faster. The company is primarily focusing on electrolyte, the material that shuttles charge around in batteries. “This is a huge opportunity for us to accelerate this whole industry,” Sendek says.

Shifting gears

So how does all this actually work? There’s a wide range of tools under the AI umbrella that Aionics hopes will help make better batteries for future EVs and other applications. 

  1. Machine learning can sort through a wide range of options. Even considering only the chemicals that are used in batteries today, a huge number of combinations are on the table. Machine-learning tools can help design experiments to speed the process of screening these options while optimizing for a desired result. In a recent paper, Viswanathan and coauthors used these tools to find electrolytes that help batteries charge faster, as my colleague James Temple wrote last year.
  2. Generative AI can design new materials. It’s possible to go beyond even the billions of molecules that are available today. Using generative models trained on existing battery materials, Aionics hopes to develop new materials that haven’t been discovered yet. Those molecules can then be added to the pipeline to be synthesized and tested in batteries. The idea is similar to using AI for drug discovery, a topic that my colleague on our AI team, Will Douglas Heaven, covered in depth earlier this year. 
  3. Large language models can help researchers work faster. In another announcement at ClimateTech, Viswanathan shared progress on a large language model that Aionics has developed, called ElectroBot. The model, which is trained on textbooks and published research in electrolyte chemistry, can help answer questions about chemical properties or give suggestions to help solve problems in the lab. These types of AI models often have a problem with “hallucinating,” or generating a response that’s not factually true. The startup is working to combat this in its model with responses that point scientists back to textbooks or published papers. 

As Viswanathan put it on stage, AI could be our best shot at accelerating the battery development timeline. This is an area I’ll definitely be following closely in the future, so stay tuned for more. And in the meantime, check out some of our recent stories on battery materials and AI. 

Related reading

AI and robots can help researchers develop new batteries, as my colleague James Temple covered in a story last year.

Battery materials can seem niche, but they can be crucial to getting better products onto the roads. Read more about how new materials could help you charge your EV faster in this story I wrote earlier this year.

Battery giants like BYD are scaling production at a wild pace, making batteries cheaper across the board. Read more about this company, one of our 15 to watch, in this profile from my colleague Zeyi Yang.

Another thing

In case you weren’t able to join us at ClimateTech this year, here are just a couple of highlights from the show. 

That massive climate bill is still on everyone’s minds over 400 days after it passed in the US. James Temple sat down with environmental policy expert Leah Stokes to talk about this and other key ideas in climate policy. Watch the session here.

We debuted our list of 15 Climate Tech Companies to watch in 2023 on stage. In a special session, MIT Technology Review editor in chief Mat Honan and I spun through all the companies in just six minutes. In case you missed that bit of fun, you can dive into the full list here, and read more about why we decided to put this project together and how we picked the companies here

Keeping up with climate  

Oysters could help efforts to restore coastal ecosystems and boost local economies at the same time. This is a great deep dive into the science and politics of the humble oyster. (MIT Technology Review)

A new project will use hydrogen produced using renewable electricity in a power plant. It’s probably not the best use for the fuel, according to energy experts. (Canary Media)

The UN climate meeting is coming up in December in Dubai. Leading the talks is the head of the UAE’s national oil company—a controversial pick, to put it lightly. (The Guardian)

Researchers are racing to map out vast underground fungal networks. The findings could help them understand biodiversity and learn how natural ecosystems can trap and store carbon. (Washington Post)

Nobody can keep up with how fast Tesla is slashing prices. The automaker has sold over 60% of all fully electric vehicles in the US, and legacy automakers like GM and Volkswagen are struggling to keep pace. (Bloomberg)

Just checking in on climate progress: things aren’t moving fast enough. The UN panel on climate change released a special report five years ago laying out the path to keeping warming at less than 1.5 °C (2.7 °F) over preindustrial levels. We’re not on track. (The Messenger

Climate change is breaking the insurance industry. Disasters mean sky-high damage costs, which push rates higher. (Grist)

AI could soon use as much electricity as some countries. A new study estimates that by 2027, servers used for AI could use up to 134 terawatt-hours of electricity annually—in the same ballpark as Argentina and Sweden. (New York Times)

The quest for equitable climate solutions

Sweeping legislation in the US, including the Inflation Reduction Act, is infusing hundreds of billions of dollars into new climate and energy technologies, funding research, development, and implementation. But as the money begins to flow, there are open questions regarding who will benefit most, and who might bear the brunt of unexpected consequences. 

Shalanda Baker, director of the Office of Economic Impact and Diversity at the US Department of Energy, spoke at MIT Technology Review’s ClimateTech event in Cambridge about the need to simultaneously address climate change and equity and the possibility of seeking justice during the energy transition. You can watch her full talk below. 

Afterwards, Baker sat down with us for a conversation about how to distribute the benefits of new technologies and address community concerns around new projects. 

This conversation has been edited for clarity and length. 

In your session, you talked a little bit about these situations where climate change and inequality intersect. Could you give some examples of clear cases where we can achieve progress on addressing climate change and inequality at the same time?

I like to think about the [low-income] tax credit program—it’s a 20% additional tax credit for investments in solar, wind, and clean energy.  

I’m really excited that my office leads that program as the program administrator in partnership with Treasury. And over the last nine months or so, we’ve designed a program that we think will actually move the needle for low-income households, so they’re going to get access to solar and wind through either community energy, rooftop solar, or small-scale wind. 

That access obviously helps to fight the climate crisis while also, if we’re successful, bringing down the overall cost of energy for those folks and actually bringing true economic benefits to those communities.

We think about a lot of clean energy technologies as being good for communities—like, having more access to cheap power is obviously a good thing. But there are also things like the hydrogen hubs or carbon removal, where there might be environmental impacts, especially for projects that still involve fossil fuels. How is your office navigating that and addressing those concerns?  

Your question reminds me of the 1970s, which was the high-water mark for environmental laws and legislation making it to the books, with the Clean Air Act and the Clean Water Act. All of these new laws protecting our air and water were beneficial for many, many, many communities around the country. But communities of color, in particular, were saying: “We’re not seeing the benefit of these laws.”

So fast-forward 50 years to the climate movement, where we have this unprecedented legislation, and it’s all to tackle the climate crisis. 

And communities are saying to us, “We’re not going to see the benefits of this locally, even though in the aggregate we may be reducing carbon dioxide emissions. You’ve already been polluting me for 50 years, then you’re going to put carbon dioxide removal technologies in my community and site other facilities that will add more impacts.”

So how do we deal with that? How do we prevent the mistakes of the past? The only way to do it is to hold ourselves accountable, and to hold companies that are availing themselves of taxpayer dollars accountable, through our community benefits planning framework.

We also empower communities to be at the table, not as recipients of information but as partners and experts and negotiators in the room as these technologies are being talked about and as the development impacts are being discussed. And the hope is that they’re going to win this time—that they’re going to get economic development, they’re going to get job creation.

No community is a monolith. But we’re talking to folks to really understand what they need and how we can best provide them with the capacity to be at the table.

There’s been lots of discussion specifically around the planned direct-air-capture hubs in Louisiana and Texas, including recent reporting from E&E News laying out communities’ concerns that they haven’t been consulted. You said that you don’t want communities to be just recipients of information. Do you think that there has been adequate communication engagement as these projects have been announced and the response has started to come out?

We were in many of those communities. When you look at a map of the country where existing fossil-fuel infrastructure is, it’s the Gulf South—outside of New Orleans, South Texas. These are places where we know that if we’re going to fight the climate crisis, we’re going to need to mitigate emissions in those areas.

So my team organized two different roadshows where we brought delegations of DOE colleagues to those places to meet the communities that would likely be impacted by the work that we’re doing.

That created a foundation of relationships and information being shared with those communities. At the time, we didn’t know when and if projects were coming to those communities.

So fast-forward to September, when the direct-air-capture announcements were made. One is going to be in the Corpus Christi area—we were there in April. One is going to be in Lake Charles—we were there in June.

So we had already created relationships, and our colleagues already understood what those communities look like. We had a small meeting with advocates we had met with in both Corpus Christi and Lake Charles, and we said, “These are announcements that are going to be made.”

The developers that were the winners of these awards were charged with doing the engagements on the ground. But we heard in some of those meetings, “This is the first time we’re hearing about this.” So that’s a problem—we understand that.

And then subsequent to that, folks were asking a lot of questions. So now we’re going back to Lake Charles, and we were in Corpus [Christi] a couple of weeks ago, to actually meet with community members and talk to them.

I will say that this is messy. I will also say that we’re building it as we go. We’re teaching a lot from my office to other parts of the agency about how to do community and stakeholder engagement. We have a lot of expertise around the agency, but we’ve never done engagement at this scale. We’ve never been an agency that does industrial development. 

So we’re learning a lot. We’re listening—my ear’s to the ground, the secretary’s ear is to the ground. And we’re operating in real time to try to adjust based on community concerns. And there’s more to come. It’s not the end of the story.