The vast majority of my interviews have focused on innovations, investing and advocacy related to climate mitigation – that is, what we can do to cut greenhouse gases and minimize the rise in global temperatures. What we do or don’t do now, will have lasting consequences and it is climate mitigation that is driving the transformation of the global economy. So it’s not surprising that mitigation dominates climate investing.  

Adaptation and resilience, meanwhile, focus not on limiting or reversing climate change but rather on improving quality of life in a warmer world. Adaptation ventures receive only a small fraction of climate investments, but rising temperatures are creating tremendous demand for a new category of products. In a joint report by Boston Consulting Group (BCG) and Temasek, it’s estimated that between $500 million and $1.3 trillion could be spent annually by 2030 on technologies that help people adapt to a changed climate. 

That’s the opportunity Darren Clifford is targeting with a new fund called Adapt[us]. Darren has worked for two decades on new markets as a founder, consultant at McKinsey & Co, and as an angel investor, and I found his perspective on the climate adaptation market to be packed with nuance and insight. We spoke about his background, three different categories of adaptation tech, the unique challenges they face, how they’ll make the future more livable, and much more. 

On today’s episode, we cover:

• [02:45 ] Darren’s Background & Career Journey
• [06:39 ] Why Focus on Climate Adaptation?
• [08:07 ] Insights from Angel Investing & Supporting Founders
• [12:14 ] Why Adaptation is Underfunded; Adapt[us] Fund Overview
• [16:19 ] Challenges in Scaling Adaptation Solutions
• [17:31 ] Adapt[us] Fund: Focus & Stage, Why For-Profit
• [18:53 ] Measuring Impact & Third-Party Well-being Validation
• [23:10 ] Market Segmentation: Resilience, Repair & Recovery, Demand Adaptation
• [25:38 ] Market Size and Investment Allocation
• [27:50 ] Business Model Challenges for Adaptation Startups
• [30:23 ] Concrete Examples of Target Companies 
• [32:59 ] Adapt[us] Venture Building Approach & Founder Support
• [36:42 ] The Venture Builder/Capital Model: Criteria & Structure
• [38:27 ] Norwegian Talent & Global Competitive Advantages
• [41:03 ] Building a Movement, Not Just a Fund
• [42:06 ] Short-Term Goals for Adapt[us] & Team Building
• [44:41 ] Closing Remarks

Resources Mentioned

• Adapt[us]
• BCG x Temasek Report: The Private Equity Opportunity in Climate Adaptation and Resilience
• Toronto Climate Week
• GIC Report: Sizing the Inevitable Investment Opportunity: Climate Adaptation
• WRI Study: Strengthening the Investment Case for Climate Adaptation: A Triple Dividend Approach

Connect with us

• Darren Clifford
• Jason Rissman

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