Bill Gates Raises Funds To Develop Clean Technology To Prevent Climate Change

JAKARTA - Bill Gates has raised hundreds of millions of dollars from seven major US companies to develop clean technologies that could play a key role in fighting climate change.

Breakthrough Energy, a non-profit organization founded by Gates in 2016, announced on Monday, September 20 that it has secured investments from Microsoft, BlackRock, General Motors, American Airlines, Boston Consulting Group, Bank of America, and ArcelorMittal.

The full size of the investments was not disclosed but they are reported to amount to more than USD 1 billion. Breakthrough Energy did not immediately respond to CNBC's request for comment.

The Washington-based company said the money would be used to fund the "Breakthrough Energy Catalyst," a project launched earlier this year that aims to finance, manufacture and purchase new solutions that will help shore up a zero-carbon economy.

Gates said in a statement that a "new industrial revolution" was needed if the world was to avoid a climate catastrophe.

“Half of the technology needed to achieve zero emissions either doesn't exist or is too expensive for most of the world to buy,” said the Microsoft co-founder. “Catalyst is designed to change that and provide an effective way to invest in the future of our clean technology.”

“By working with this growing community of private and public partners, Catalyst will take a global view of the landscape of energy innovation, key technologies, leading companies, financing partners, and key policies, and fund the projects that will have the greatest positive impact on our planet.", Gates said as quoted by CNBC.

The program will initially focus on direct air capture, green hydrogen, long-term energy storage, and sustainable aviation fuel.

BlackRock has pledged USD 100 million over five years through its charitable foundation. While Microsoft, American Airlines, and ArcelorMittal have committed the same amount. Others did not disclose the size of their investment.

Larry Fink, CEO and chairman of BlackRock, said in a statement that the transition to a clean zero world is "the shared responsibility of every citizen, company and government," adding that a global energy transition would require USD 50 trillion.

Despite what world leaders and CEOs say, the so-called energy transition has not actually happened. Global fossil fuel use is accelerating and will get worse, exacerbating the risk of climate catastrophe.

"It's definitely a case that the transition is moving too slowly from a climate perspective, but what's important to recognize is that it's primarily a matter of political will and economic choice," said Carroll Muffett, chief executive at the nonprofit Center for International Environmental Law last April.

A much-anticipated report by the UN climate panel warned in August that limiting global warming to close to 1.5 degrees Celsius or even 2 degrees Celsius above pre-industrial levels. This global warming "will be out of reach" in the next two decades without immediate, prompt, and appropriate action and large-scale reductions in greenhouse gas emissions.

"Our partnership with the Catalyst program represents a five-year philanthropic commitment to investing in cutting-edge science that will help take vital clean energy solutions forward," said Fink.

Aditya Mittal, CEO of ArcelorMittal, North America's largest steelmaker, said in a statement that initiatives such as Breakthrough Energy Catalyst are "important" for the company and the wider steel industry.

“The steel industry knows how to decarbonize – basically what is missing is the availability of clean energy at competitive prices that provides the foundation for us to really accelerate,” he said.

Gates isn't the only tech billionaire trying to tackle climate change. Elsewhere, Amazon founder Jeff Bezos has set up a USD 10 billion Bezos Earth Fund. Tesla CEO Elon Musk has pledged to invest USD 100 million in new carbon capture technology.

Some argue that this is what tech billionaires can do as much as possible because they themselves are one of the main causes of climate change. Others question whether they are focusing their climate change mitigation efforts in the right areas.