This week, we're looking at a plan to expand electricity access to 300 million people across Africa, a record-setting $2 trillion in global investment in the energy transition, and regulations and incentives to bolster Europe's EV market.

If you enjoy our Weekly Brief, please consider sharing with your friends and colleagues in the climate community and encourage them to subscribe here. You can also follow Tectonic on LinkedIn and Instagram for more regular updates.


Plan to invest $35 billion in expanding electricity access across Africa: The World Bank, African Development Bank, and other lenders are committing at least $35 billion to expand electricity across Africa. The project aims to provide electricity to 300 million people, focusing on building small solar sites in rural areas. About half of the funds will go towards solar "minigrids" that serve individual communities. The loans will be offered below-market interest rates, addressing a major concern as global lenders typically charge higher rates in Africa due to perceived higher risks. The loans are contingent on regulatory overhauls that allow private electricity providers to compete with state-run utilities, with 12 countries signing "compacts" and 18 more expected to follow in the coming months. The initiative is led by World Bank President Ajay Banga, who emphasizes the importance of electricity in driving economic development, societal stability, and basic human rights. The project aims to electrify half of Africa's 600 million unelectrified people within six years, averaging five million people per month, a target that even the World Bank has not yet achieved on its own. 

Investment in energy transition exceeds $2 trillion: BloombergNEF's Energy Transition Investment Trends 2025 report found global investment in the low-carbon energy transition reached a record $2.1 trillion in 2024, an 11% increase from the previous year, driven by electrified transport, renewable energy, and power grids. The investment growth was slower than the previous three years, when investment jumped by 24-29% annually, and was primarily driven by China, which invested $818 billion, accounting for two-thirds of the total global increase. Electrified transport remained the largest investment driver, reaching $757 billion in 2024, followed by renewable energy at $728 billion and power grids at $390 billion. The report highlights a marked difference between investment in mature and emerging sectors of the clean energy economy, with mature sectors such as renewables, energy storage, electric vehicles, and power grids drawing $1.93 trillion. In comparison, emerging technologies like electrified heat, hydrogen, and carbon capture and storage received only $155 billion.

China sets record on renewable energy installs: China set a record for the amount of wind and solar power installed in 2024, adding 357 gigawatts of solar and wind power, a 45% increase in solar and 18% increase in wind power compared to the end of 2023. This achievement surpasses China's goal of having 1,200 gigawatts from renewables by 2030, set by Chinese President Xi Jinping five years ago, six years ahead of schedule. expected, which would be a positive signal for the decarbonization of China's power sector. The country's power demand is forecast to rise by 6-7.5% in 2025, driven by advanced manufacturing and industrial power consumption, with services and advanced manufacturing becoming the main drivers of demand growth. A rapid rollout of renewable energy capacity is expected to meet the extra demand, with China likely to meet or exceed 2024's record increase in renewable energy capacity as developers rush to meet the targets of its five-year plan.

Potential boosts for EVs in Europe: The European Commission is considering a pan-EU subsidy program to boost demand for electric vehicles and support the embattled European car industry. The proposed incentive program aims to counter China's growing EV market share and facilitate a unified approach to EV adoption across EU member states rather than relying on national subsidies. German Chancellor Olaf Scholz had previously proposed an EU subsidy program after the German government scrapped its own EV incentive scheme in 2023, leading to a decline in EV sales. The EU's stricter emissions rules are set to go into effect later this year, requiring carmakers to meet tough targets for reducing carbon emissions, which can be achieved by increasing zero-emissions car production, reducing combustion engine output, or buying emissions credits from companies with an abundance of credits.

Startups seek to tackle wildfires: A recent study by World Weather Attribution found that climate change increased the likelihood of Southern California wildfires by 35%, with extreme weather conditions now likely to occur once every 17 years. To mitigate the risk of wildfires, startups such as Vibrant Planet have developed platforms to analyze data, determine where wildfire risk is highest, and work with stakeholders to develop plans to mitigate the risk. Other startups, such as Kodama and BurnBot, are working on vegetation management and prescribed burning, with Kodama retrofitting forestry equipment for remote operation and BurnBot developing a remotely operated machine that can safely conduct prescribed burns. Startups like Pano and Google's FireSat are working on early detection of wildfires, using AI to crunch data from various sources, including cameras, satellite imagery, and emergency alerts.

Tectonic's agency provides creative and strategic services for climate startups, nonprofits, investors, and philanthropic foundations. We develop strategy, storytelling, design, fundraising, and partnerships to support and amplify the impact of visionary climate innovators.

Explore ways we can work together.

New York solar farm gets $950M: Greenbacker Renewable Energy Co., a clean energy and investment company, secured $950 million in funding to construct New York state's largest solar farm. The solar farm, known as the Cider project, will have a capacity of 500 megawatts and is located in Genesee County, east of Buffalo. The project is expected to be completed by 2026.

Microsoft signs major carbon deal with startup: Microsoft has signed a 25-year deal with reforestation startup Chestnut Carbon to purchase over 7 million tons of carbon credits, which will enable the company to reforest 60,000 acres of land across Arkansas, Louisiana, and Texas. The deal is part of Microsoft's efforts to reduce its carbon emissions, which rose 29% since 2020 due to the surge in AI and cloud computing, putting its 2030 goal to sequester more carbon than it produces at risk. Chestnut Carbon focuses on reforestation, facilitating tree planting and monitoring the new forests to ensure they grow as planned and aren't cut down, with a current focus on eight projects in the Southeast U.S. that were previously used as farms or pastures.

Fusion startup raises $425M: Helion, a 12-year-old fusion startup, raised $425 million in a Series F funding round, bringing its valuation to $5.2B, with the goal of building a fusion reactor to supply electricity to Microsoft by 2028. The company's unorthodox approach to fusion power, using a field-reversed configuration reactor, has earned it both fans and critics, but its investors remain optimistic about its potential. Helion's latest prototype, Polaris, is the seventh prototype and is expected to be the first fusion reactor to generate electricity, with the company aiming to move quickly to build a commercial-scale power plant to meet its 2028 deadline.

AI and gaming help identify deep-sea species: Researchers from the Monterey Bay Aquarium Research Institute (MBARI) are utilizing artificial intelligence (AI) to help identify deep-sea species, with the goal of better understanding the role of marine life in cycling carbon out of the atmosphere. A remotely operated vehicle (ROV) called MiniROV, equipped with cameras and lights, has been deployed in Monterey Bay to test an AI-powered tracking system that allows it to locate and track marine organisms autonomously. The AI program, integrated into MiniROV's control algorithms, was successfully tested for the first time in the ocean, allowing the robot to follow a jellyfish for five minutes without human intervention. The researchers aim to use the AI-powered MiniROV to track individual animals for up to 24 hours, gathering data on their behavior and ecology, and potentially enabling autonomous vehicles to monitor the ocean constantly.

Oceans warming four times faster: A recent study published in Environmental Research Letters reveals that the world's oceans are warming four times faster than they were in the late 1980s, with alarming acceleration in recent years. The study's findings have significant implications for ocean health, as rising temperatures impact coral reefs, fisheries, and other marine ecosystems, leading to higher sea levels, more extreme storms, and more frequent and severe fires. The acceleration in ocean warming is fueled by an increase in the Earth's energy balance, which has roughly doubled since 2010 due to increased greenhouse gas concentrations and disappearing ice, allowing less sunlight to be reflected back into space. The study's results also have implications for global weather patterns, with warmer oceans contributing to more extreme storms, polar ice melting, sea level rise, and more frequent and severe fires.

New Zealand plans for climate adaptation: New Zealand is planning to introduce legislation by the end of the year to create a framework for adapting to the impacts of climate change, with the law expected to be in force in 2026. The proposed legislation aims to establish guiding principles and responsibilities for adaptation action, following recommendations from the Climate Change Commission and a parliamentary select committee inquiry. The adaptation framework will outline the roles and responsibilities of the government, councils, businesses, households, and insurers in sharing the costs of climate-related measures, such as flood protection. The framework will also address the issue of rising insurance costs in areas sensitive to climate-related events and the need for managed retreat from some locations.

Report highlights need for India to protect country's coasts: India's government advisers have emphasized the need to prioritize the protection of the country's vulnerable coasts as part of its resilience strategy, particularly in the absence of sufficient financial support from richer economies. The Economic Survey, released ahead of the annual budget, highlights the urgent need for adaptation measures along India's 7,600-kilometer coastline, which is densely populated and threatened by high tide flooding, storms, and rising sea levels. India is the seventh most climate-vulnerable country, and the failure of developed nations to commit sufficient finance for mitigation means it will have to deal with a growing exposure to climate-change-driven extremes.

US election forces Colombia to rethink green plan: Colombia's $40 billion climate investment plan has been forced to undergo a significant rethink following President Donald Trump's return to the White House, as the country had initially hoped to secure funding from the US during former President Joe Biden's term. Environment Minister Susana Muhamad had been actively seeking support from Washington officials, but the plan was put on hold after Trump took steps to pull the US out of the Paris Accord, nixed the US International Climate Finance Plan, and paused all foreign aid on his first day in office. Political shifts in Germany, another key partner, also added a wrinkle to the efforts. The Colombian government will provide up to 30% of the funds for the plan, with developed country governments expected to contribute additional financing and the government is also working with the Inter-American Development Bank and the country's export credit agency, ProColombia, to help fill the remaining investment needs.

The link has been copied!