Words by Andrew Symes, co-founder and CEO of OXCCU.
As an ex-scientist and entrepreneur in climate tech, my career has centered on developing hardware solutions that can be commercially scaled to drive a sustainable future.
Climate change is driven primarily by the accumulation of anthropogenic CO2 and other GHGs, such as methane, in the atmosphere. These are physical molecules produced by the physical assets we rely on. Addressing this issue necessitates either building new infrastructure or changing inputs to old infrastructure to reduce emissions. While regulation and software will play a role, they alone won't suffice to halt GHG emissions; we need engineers building, changing, and upgrading infrastructure in the physical world.
The current landscape: Climate tech faces an engineering shortfall
From my perspective in the industry and experience with climate tech investment, I am increasingly concerned that the sector is not attracting enough engineering talent, a gap that could have long term consequences.
The brightest engineering minds continue to gravitate towards software, artificial intelligence (AI), and finance. While these fields offer lucrative opportunities, this focus is dangerously out of step with the urgent need for physical engineering, both developing breakthroughs as well as scaling them up globally to combat climate change.
Software does play a role in addressing climate change, such as managing grids with significant variable renewable energy, managing EV charging and heat pumps with demand response and smart grids, developing novel materials, and enabling data-driven climate modelling. It can also help reduce industrial emissions with AI and support carbon tracking and circular economy initiatives. However, software alone cannot solve climate change.
The benefits software delivers are largely dependent on the historic breakthoughs in the material world and dependent on the companies physically building them, be it solar panels, wind turbines or lithium-ion batteries - and we need more of them. Software is also causing considerable environmental impacts of its own, with the huge energy demands of data centres and the increasing computational power required to run large Language Learning Models (LLMs).
The allure of software: Financial gain vs climate needs
finance is a key part of the energy transition, as we need banks and funders to shift capital from the old infrastructure to new, lower-carbon infrastructure. Venture capital, family offices, growth funds, and public markets all need to back cleantech, both early and late stage, and engineering backgrounds are essential for many of these roles where significant technical due diligence is required. However, not all engineers who go into finance are focused on this sector.
Financial opportunity is a key factor in the shift toward software engineering and finance. These sectors have traditionally offered higher salary potential, naturally drawing top graduates into these fields.
I believe the second notable factor is cultural. Hardware and the materials world in general can often be perceived as outdated compared to the glamourised 'digital' economy, and this is felt most acutely in Western countries. While software, AI and finance have become the dominant career paths for graduates, the fight against climate change requires something more tangible: real-world infrastructure, hardware innovation and deep-tech solutions that address the material sources of emissions. The breakthroughs that will drive a sustainable future are not born from code or finance alone by from the minds of engineers willing to work in the physical realm.
We must do more at the educational level to inspire future engineers to pursue hardware-focused careers. We must demonstrate how incredible some of these transformations in the material world are, be it the journey of silicon in a solar panel or of carbon in forming a specialty chemical product. Universities and training programmes need to place greater emphasis on the critical role of hardware in solving global challenges like climate change. Encouraging this shift may be essential to ensuring we have the talent needed to drive the materials solutions that the climate crisis needs.
Planning permission and scaling up solutions: The role of government and industry
Restrictive planning permissions in the West are another challenge, and there is an increasing reluctance to build. As more physical manufacturing is outsourced, the problem worsens as people distanced from these processes become less likely to support them, despite positive benefits such as high-skilled employment opportunities.
Wind and solar energy expansion is evidence that scaling can happen quickly with the right support. This is where the role of governments and the private sector can assist in creating an ecosystem for success.
We also need support for first-of-a-kind (FOAK) projects. Much of this new infrastructure has never been done at scale and, therefore, requires adopting new technologies. To mitigate risks, it's essential to construct smaller versions of these technologies first, which, though still costly and often uneconomic initially, provide critical learnings for advancing climate change progress.
Geopolitics and potential local benefits
From a geopolitical perspective, the countries that lead in hardware innovations gain advantages. Producing energy, fuels and products domestically can reduce reliance on foreign sources, and countries that decarbonise first could export their technology to others, gaining economic leverage. Increasing investment in homegrown hardware solutions can stimulate growth and position countries as leaders in the green economy. The jobs and skills created can positively impact surrounding areas, especially in locations that have suffered from deindustrialisation, as there is more land and talent present, such as operators and fabricators.
The path forward: Mobilising engineering for a sustainanle future
This is a call to action for engineers, educators and policymakers. The climate challenge is an engineering challenge, and we must urgently reorient our focus toward the physical innovations that can reshape industries and rebuild out infrastructure. To succeed in mitigating the worst effects of climate change, we need to reverse the current trend. Engineers must return to the material world, where they can design, build and implement innovations that will save our planet and secure the future of industry and society. With an influx of talent, innovations ready to scale, and products demonstrated as viable FOAK plants ready for the mass market, we can deliver on climate goals.
