As the Trump administration retracts billions of dollars previously pledged to initiatives aimed at funding the green transition, the global community is now turning to Plan B in its efforts to combat global warming.
Recently, Japan’s finance minister confirmed that the nation will continue its support for Indonesia’s energy transition despite the United States' exit from a $20 billion initiative designed to help one of Asia’s largest polluters shift away from fossil fuels. This move is part of a broader trend in the global energy transition, where international backers of Just Energy Transition Partnerships (JETPs) are reevaluating their financial commitments in light of the United States' withdrawal from climate funding programs.
The JETP initiative also includes significant funding packages for other countries, such as a $15.5 billion deal for Vietnam and a $9.3 billion package for South Africa. However, the United States’ decision to withdraw from these partnerships has prompted concerns regarding the sustainability of these transition efforts. The financial ramifications of the US pulling out are being carefully assessed by other global stakeholders, who must now consider alternative funding solutions to keep these critical climate initiatives on track.
Last month, it was confirmed that Germany would take over as co-leader in the collaboration with Indonesia, stepping into the role previously held by the United States. This transition comes at a time when progress in Indonesia’s energy transition has been slow. Despite the significant financial commitments made under the JETP, Indonesia has struggled to make headway in both securing the promised funding and addressing the complex challenges associated with phasing out coal-fired power plants.
“The United States has withdrawn from its role as co-lead of the JETP with Indonesia,” stated Japan’s Finance Minister Katsunobu Kato during a press briefing today. “Japan will continue to support Indonesia’s efforts towards decarbonization and energy transition, while fulfilling its responsibilities alongside Germany, which has taken on the co-leadership.
US Withdraws from Climate Finance Pacts, Prompting Global Push for Private Investment and Multilateral Reform to Secure $45 Billion in Green Transition Deals, Says UK Climate Envoy Rachel Kyte
Earlier this week, South Africa revealed that the US had informed them of its decision to withdraw from a coal-transition pact, where it had previously committed $1 billion. This followed the US's cancellation of $4 billion in pledges to the Green Climate Fund, the world’s largest fund of its kind, earlier in January.
Rachel Kyte, the UK’s climate envoy, stated that climate finance initiatives must now seek increased funding from private investors. She emphasized that multilateral development banks must undergo reforms to play a larger role, and numerous initiatives must be “de-fragmented” to pool larger capital resources.
In an interview in Pretoria, South Africa’s capital, Kyte said, “You plan for the worst and hope for the best. We have to prepare for a scenario where the US is no longer injecting funds into the green transition.”
What comes next? Read our previous coverage on how the US’s withdrawal from global climate finance programs is prompting efforts to save $45 billion in pending deals.
Earlier this week, South Africa revealed that the US had informed them of its decision to withdraw from a coal-transition pact, where it had previously committed $1 billion. This followed the US's cancellation of $4 billion in pledges to the Green Climate Fund, the world’s largest fund of its kind, earlier in January.
Rachel Kyte, the UK’s climate envoy, stated that climate finance initiatives must now seek increased funding from private investors. She emphasized that multilateral development banks must undergo reforms to play a larger role, and numerous initiatives must be “de-fragmented” to pool larger capital resources.
In an interview in Pretoria, South Africa’s capital, Kyte said, “You plan for the worst and hope for the best. We have to prepare for a scenario where the US is no longer injecting funds into the green transition.”
What comes next? Read our previous coverage on how the US’s withdrawal from global climate finance programs is prompting efforts to save $45 billion in pending deals.
Spiritus Secures $30 Million in Series A Funding to Advance Direct Air Capture Technology, with Plans for Carbon Removal Plants in New Mexico and Wyoming, Backed by Khosla Ventures, Aramco, and Mitsubishi.
Spiritus, an innovative startup focused on carbon capture technology, has successfully raised $30 million in Series A funding. The round was led by several high-profile investors, including Khosla Ventures, Aramco Ventures, Mitsubishi Heavy Industries America, and TDK Ventures. These backing entities bring valuable expertise and resources to Spiritus, enabling the company to scale its pioneering technology that aims to address one of the world’s most pressing environmental challenges: carbon pollution.
The funds will be primarily used to advance Spiritus’s direct air capture (DAC) technology, which uses machines to extract carbon dioxide (CO2) directly from the atmosphere. The company is at the forefront of the growing field of carbon removal, which has gained increasing attention as the world grapples with the urgent need to mitigate the effects of climate change. Traditional methods of reducing emissions often focus on limiting new CO2 emissions, but direct air capture presents a unique solution by removing existing greenhouse gases from the air, offering a potential pathway to not only stop future emissions but also reverse some of the damage already done.
A significant portion of the newly raised funding will be allocated to speeding up the construction of Spiritus’s first DAC pilot plant in New Mexico. Co-founder and CEO Charles Cadieu has emphasized that the pilot facility, which is expected to come online in the second half of 2025, will play a critical role in proving the technology’s scalability. This pilot plant is designed to have the capability to remove 1,000 tons of CO2 annually. While this may seem modest compared to the total amount of global emissions, it marks an important first step in Spiritus’s ambitious goal of scaling DAC to an industrial level. The company’s long-term vision is to deploy these systems at a much larger scale to have a significant impact on the planet’s carbon levels.
Spiritus’s innovative approach to direct air capture involves using large-scale machines equipped with specialized filters to trap CO2 from ambient air. The captured carbon can then be stored safely underground or repurposed for use in other industries. As global attention on climate change intensifies, Spiritus’s technology offers a practical and scalable solution to help countries and industries meet their carbon-neutral goals.
In addition to the New Mexico pilot plant, the Series A funding will also support the company’s plans for a much larger-scale carbon removal facility in Wyoming. While construction on the Wyoming plant has yet to begin, the funding will enable Spiritus to move forward with site development and planning. Once operational, this larger plant is expected to significantly increase the amount of CO2 removed from the atmosphere, further demonstrating the viability of DAC technology on a broader scale.
The involvement of Khosla Ventures, Aramco Ventures, Mitsubishi Heavy Industries America, and TDK Ventures in Spiritus’s funding round underscores the increasing interest and commitment from both private and public sectors in addressing the global climate crisis. Khosla Ventures, a renowned venture capital firm, is known for its investment in cutting-edge technologies, particularly in the sustainability sector. Similarly, Aramco Ventures and Mitsubishi Heavy Industries America bring deep expertise in energy and industrial technologies, while TDK Ventures offers valuable experience in advanced materials and electronic systems.
As the world continues to grapple with the effects of climate change, Spiritus’s efforts to develop scalable, efficient carbon capture solutions could prove pivotal in helping to limit global warming. While direct air capture is still in the early stages of commercialization, the funding from these esteemed investors will enable Spiritus to accelerate its research and development, bringing the company closer to realizing its vision of a cleaner, more sustainable future.
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