Beyond Clean Tech: Why Food Systems Deserve a Bigger Slice of the Climate Funding Pie

New York Climate Week has just ended and while we feel fully charged to take on the climate crisis, it bears mentioning that substantial funding has poured into clean technology (clean tech) in an effort to reduce emissions and create a more sustainable future. This surge of investment, particularly in renewable energy, electric vehicles, and carbon removal, has positioned clean tech as a key player in the fight against climate change. However, a critical part of the solution — transforming food systems — remains largely underfunded. Given that one-third of global emissions come from agriculture and food waste, investing in food systems represents a massive, untapped opportunity to cut emissions, address food security, and create broader social and environmental benefits.

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This is a question I wrestled with for some time and my thoughts were amplified when I met Eva Goulbourne from Littlefoot Ventures and heard her presentation on the impact food waste reduction has on climate change. While there is ample evidence that food systems funding can make a bigger difference in climate change than carbon removal tech, the funding story out there says the reverse.

This disparity in funding raises an important question: Why are funders more inclined to invest in clean tech than in sustainable food systems, and what are the missed opportunities in doing so?

Clean Tech’s Dominance in Climate Investments

The clean tech sector has captured the imagination of investors for several reasons. First, it offers scalability and profitability, which appeals to venture capital and institutional investors. Products like solar panels, wind turbines, electric vehicles, and energy storage solutions have the potential for large-scale market expansion, which can drive rapid financial returns.

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In addition, clean tech aligns with a strong public narrative of technological progress and innovation. It presents itself as a clear solution to the climate crisis, using technology to solve problems like reducing carbon emissions in the energy and transportation sectors. This narrative, along with clear regulatory support such as subsidies and tax incentives for renewable energy, has propelled clean tech to the forefront of climate-focused philanthropy and venture capital.

Government policies like the Inflation Reduction Act in the U.S. further amplify this trend by focusing primarily on electricity generation and carbon removal. While these are crucial areas for reducing emissions, carbon removal is expected to contribute only 4% of the total solution needed to achieve net-zero emissions, with 96% of the effort focused on cutting emissions at their source. Much of this reduction will need to happen within the next 10 years, yet the agricultural sector remains largely overlooked in these funding discussions.

The Overlooked Potential of Food Systems

Despite the surge in clean tech investments, food systems represent one of the most critical areas for climate action. Agriculture and food systems account for one-third of global emissions, making them a major contributor to climate change. These emissions are not just from carbon dioxide but also from methane — a far more potent greenhouse gas.

While methane emissions represent less than 1% of total global emissions by mass, methane is responsible for one-third of current global warming. Over a 20-year period, methane is 86 times more potent than carbon dioxide. Agriculture and food waste are responsible for 40% of methane emissions globally. Yet, only a small fraction of climate-focused funding goes into mitigating these emissions by transforming agricultural practices or reducing food waste.

Food systems also offer a significant opportunity to reduce waste and emissions. Currently, one-third of all food produced globally is lost or wasted before it reaches consumers, and food waste alone contributes to 10% of total global emissions. Reducing food waste, improving efficiency in food production, and shifting toward regenerative agricultural practices could cut a significant portion of emissions while also improving food security and equity.

Addressing Food Security While Fighting Climate Change

The need for investment in food systems is not just about cutting emissions. It is also about ensuring that the world can feed a growing population. By 2050, the global population is expected to reach 9.8 billion, requiring 56% more food to meet demand. However, producing more food under current systems would come at a tremendous environmental cost, putting additional pressure on land, water, and biodiversity.

Investing in sustainable food systems offers a path to meet these needs while reducing environmental harm. Solutions like regenerative farming, precision agriculture, and alternative protein sources can help increase food production without expanding agricultural land or degrading natural ecosystems. Moreover, these solutions have the potential to improve soil health, enhance biodiversity, and create more resilient agricultural systems in the face of climate impacts.

Bridging the Investment Gap

Despite the compelling environmental and social case for investing in food systems, the sector faces several challenges in attracting funding. One key reason is the perception that food systems are harder to scale and less profitable than clean tech. Unlike clean tech, which offers clear, tech-driven solutions, food systems require a more nuanced approach that involves changing practices across diverse and decentralized sectors like farming, food processing, and distribution.

The time horizon for impact in food systems can also be longer than in clean tech. While renewable energy technologies can be deployed quickly and produce measurable results, transforming food systems requires structural changes that take time to materialize. Changes in agricultural practices, shifts in consumer behavior, and improvements in food supply chains are gradual and complex processes.

Yes, food systems may not be an appealing sell in an investor pitch deck but the potential for impact is enormous. With one-third of global emissions tied to food systems and 40% of methane emissions coming from agriculture, targeting this sector could yield quick and meaningful results in cutting greenhouse gas emissions. Additionally, addressing food waste and inefficiencies in the food system offers both environmental and economic benefits, potentially reducing food prices and improving food security.

A Call for More Investment in Food Systems

To meet global climate goals, funders need to diversify their investments beyond clean tech and prioritize sustainable food systems. The clean tech sector, while crucial, cannot address the full scope of the climate crisis on its own. Food systems offer an opportunity to not only reduce emissions but also improve biodiversity, create more equitable food distribution, and enhance resilience against climate impacts.

By shifting a portion of climate philanthropy and venture capital toward food systems, funders can help create the structural changes necessary to build a sustainable and resilient future. Reducing food waste, adopting sustainable agricultural practices, and addressing methane emissions from agriculture are essential steps toward a truly comprehensive climate solution.

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To summarize, food systems offers a far more meaningful, yet underfunded, pathway against climate change. As we move toward net-zero goals, it is critical that funders recognize the value of investing in food systems and take action to close the funding gap.

Check out Littlefoot Ventures to learn more about food systems philanthropy. Most of the stats in this article came from Eva’s presentation.