Saving the planet means more than reducing carbon emissions
By Lindsey Higgins and Joel Larsson
There’s been a lot of focus on carbon removal - for good reason - but did you know that there are actually nine major systems that need to remain in balance in order for us to live well on Earth? Join Lindsey and Joel below to learn more about the Planetary Boundaries and how they influence our approach towards investing.
A time of relative stability
It may surprise you to learn that, even though it may feel like the world is breaking apart, we are living in a time when the earth’s systems are relatively stable. Human beings have only existed for a few million years—just a tiny fraction of the earth’s 4.5 billion year existence (around 1%).
If we look deep into the planet’s history, before humans even existed, the life-support systems that we rely on were either going through massive shifts or were not even in place yet (we’re looking at you, ozone layer).
For the past 12,000 years, human civilisation has thrived in a goldilocks situation of ‘just right’ (lagom, as we say in Swedish). The earth is constantly working to maintain a balance between its systems, and when we alter our environment, that throws things out of balance. So, in 2009, an international group of scientists gathered to determine what a “safe operating space” for humanity looks like. The primary question on the table was this: what are the specific systems that we rely on as a species, and really all life on earth? But also, within those systems, where is the danger zone? Is there a point of no return?
Enter the nine planetary boundaries.
The planetary boundaries represent the major systems that ensure a safe operating space on Earth, and we’ve now crossed into the danger zone on five out of nine.
So far this year, we have passed the boundary for novel entities. This means all long-lived toxic substances humans release into the environment. Novel entities include antibiotics, pesticides, and industrial chemicals, but one of the single most significant contributors to crossing this boundary is the plastic industry.
We’ve also partially passed the boundary for freshwater. Knowing the exact point a boundary has been crossed is difficult, and it might not be something we can even put a number on. The reason the novel entities boundary is considered to be crossed is because we are producing and releasing these substances so fast that we are no longer able to keep up with tracking and assessing them.
The situation is serious, but we shouldn’t think of the crossed boundaries as a lost cause. Take the ozone layer as an example. In the 1980s, we discovered that our behaviour (like spraying aerosols and refrigerants) created a hole in the ozone layer over Antarctica. The world came together to phase out these chemical compounds by enacting The Montreal Protocol of 1989, and we saved the ozone layer. This has happened before, and it can happen again.
The planetary boundaries in practice
By only focusing on tons of carbon, we believe you lose out on many other things that might improve our climate and overall planetary health and so the planetary boundaries have greatly influenced our approach to investing in the climate tech space. Let’s look at forests as an example. About one-fifth of the global population relies on forests for their livelihoods, and forests are one of our most practical solutions for climate change mitigation—sequestering about two billion tonnes of CO2 every year. It is becoming common practice to replant trees after chopping them down, but this often comes in the form of monoculture plantations (meaning one particular type of tree) that do not support biodiversity the way natural forests do. Without that biodiversity, these tree plantations trap about 40 times less carbon. This interconnectedness is why investments in conserving and restoring biodiversity are critical for maintaining our resilience to climate change, and vice versa.
Taking this approach doesn’t mean we are less strict about determining what counts as climate-positive and how we invest. In fact, we feel it’s quite the opposite and have prioritised research that dives deep into the science behind climate innovations to inform our decision-making process. We think it’s important to factor in both carbon emissions and the impact on the planetary boundaries.
The actions we take right now and over the next decade will determine the future for generations to come. There is no doubt that we must reduce emissions and expand our carbon removal technologies, but we also urge entrepreneurs and investors to look beyond those tons of carbon. Let’s support the founders who will build solutions that address ocean acidification, improve biodiversity, secure freshwater supplies, and enhance food security—this is how we truly prepare and adapt for a new future.
If you’re looking for more information about the impact of a specific space or technology, check out our public Notion where we have open-sourced our research efforts.