Measuring Climate Impact Amid Unproven Technologies and Unpredictable Event Risk

Article

Climate tech investment is at a crossroads, with funding shifting toward AI and energy demand surging. Measuring impact remains a challenge, as unproven technologies and inconsistent metrics complicate risk-adjusted returns. Can new frameworks like Carbon Yield set a standard for evaluating climate tech investments?

Feb 25, 2025

Reena Mithal, Founder & Managing Partner, Sankhya Capital LLC

Tags: ESG and Climate Risk

Measuring Climate Impact Amid Unproven Technologies and Unpredictable Event Risk

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

Climate tech investment has declined while AI funding grows, underscoring a shift in investor priorities.
The lack of standardized climate impact metrics makes it difficult to assess risk-adjusted returns for emerging technologies.
TPG Rise Climate’s Carbon Yield methodology aims to quantify carbon aversion, offering a potential benchmark for climate tech investment.
Industry-wide adoption of consistent impact measurement tools is essential for climate tech to become a mainstream asset class.