Vinod Khosla on how the anti-green agenda could help climate tech

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🗞️ Driving the news: Venture capitalist Vinod Khosla argues that the recent political backlash against green policies in the U.S. and Europe could paradoxically accelerate climate tech innovation — if it forces companies to develop solutions competitive on cost alone
• He emphasises that clean technologies must achieve price points attractive enough for mass adoption in major economies like China and India, regardless of policy support

🔭 The context: Khosla, a prominent investor in clean energy and technology startups, has long advocated for innovation as the primary lever to address climate change
• His comments come amid growing resistance to subsidies and mandates for green policies in Western democracies, where energy costs and political polarisation have undermined support for ambitious climate agendas
• Emerging markets, which account for most future emissions, remain cost-sensitive and policy-constrained, making affordability a critical factor

🌍 Why it matters for the planet: By focusing on technologies that compete on price, innovators can reduce global emissions more effectively than policies limited to wealthy countries
• Scalable, low-cost solutions are essential to decarbonising the fast-growing economies of Asia, where the bulk of future energy demand will arise
• However, the risk remains that without policy frameworks, markets alone may not deliver the necessary pace of transition.

⏭️ What's next: Climate tech investors and entrepreneurs are likely to intensify efforts to develop solutions with lower capital costs and faster payback times, appealing to buyers in price-sensitive markets
• Policymakers may also adjust by shifting support from mandates to R&D funding and demonstration projects
• Watch for near-term signals in upcoming investment flows and whether emerging-market procurement prioritises cost-competitive green technologies over legacy fossil options

💬 One quote: “You can’t guilt India or China into adopting expensive green solutions — they’ll only adopt what makes economic sense,” — Vinod Khosla

📈 One stat: Emerging markets are projected to account for over 70% of global energy demand growth through 2040, according to the IEA

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