We’re back with another episode in our series on the Missing Middle in Climate Tech in partnership with Spring Lane Capital. This is the fifth episode in the series. If you didn’t catch the others, check out InvestedinClimate.com/series and you’ll find our other episodes. If you have ideas for other series and would like to partner, get in touch through the website as well.

The missing middle is a structural problem – a lack not only of available capital for climate companies, but also of the kinds of firms able to invest in them. New firms with new types of investment mandates are needed, and so I was thrilled to learn about a new fund called All Aboard. It’s a truly innovative firm developed by someone who has long had his finger on the pulse of the world’s biggest problems and boldest solutions. If you’ve ever watched a TED Talk you probably know Chris Anderson, who has led TED for the last 25 years. Chris is probably one of the best networked people on the planet, and that he decided to focus on building a new fund designed to address the missing middle in climate finance speaks volumes.

Spring Lane Capital Partner and Entrepreneur in Residence Jason Scott gets credit for putting together this episode and joins us in what was a truly fascinating conversation. All Aboard reflects the type of creativity and ambition needed to fill a critical climate finance gap, and I think we all hope their model inspires you in some way. Enjoy.

• 0:03:31 – Chris explains his shift to climate investing and TED’s climate initiatives
• 0:04:53 – Setting the stage: The funding gap in climate tech
• 0:05:23 – Jason describes the three buckets of the "missing middle" and All Aboard fund’s mission
• 0:09:33 – Exploring the structural capital problem in the energy transition and limitations of current financial markets
• 0:11:16 – Chris & Jason discuss scale challenges and why current investment models fall short for climate solutions
• 0:14:12 – Impact of collaboration in the climate investing community, with examples from Spring Lane and All Aboard
• 0:16:57 – Chris describes All Aboard: how convening and pooling investors can solve the missing middle
• 0:22:42 – The role of “social proof,” building momentum and ecosystems around climate ventures
• 0:25:12 – Fundraising goals for All Aboard and the scale of opportunity in climate tech
• 0:29:00 – Recognizing growth and potential exits for climate companies; learning from historical performance
• 0:31:14 – How companies may become eligible for All Aboard, criteria for selection, and the practical mechanics of funding
• 0:34:51 – The necessity of both capital and sustained support for scaling climate solutions
• 0:36:30 – Vision for the future: If All Aboard succeeds, expectations for climate tech and financial markets
• 0:37:54 – Other approaches and financial innovations to address the missing middle
• 0:40:24 – The role of government and public-private partnerships in de-risking and scaling clean tech
• 0:42:56 – Closing remarks

• All Aboard
• Spring Lane Capital
• Invested in Climate – Missing Middle series
• TED and TED Countdown

There’s been a lot of news in recent years about the risks within carbon markets. Companies buying carbon credits to offset their emissions have struggled with the uncertainty that a carbon project might not reduce as much carbon as they project. A forest could burn or a technology could fail to work properly and the project will underdeliver. Yet, hundreds of billions of dollars are spent on carbon credits, a figure that could grow well into the trillions.

Bilal Hussain is targeting this uncertainty in this market by offering insurance through his company Artio. Fun fact: Bilal actually saw the need for insurance while working at Sylvera – a carbon market sourcing and diligence platform and recent guest on our show – when he realized that investors were asking for collateral that no one had. Artio enters early – before the first tree is planted – to help more carbon reducing projects become viable. If you consider the size of the carbon market and the shortage of ways to insure new projects, the opportunity for Artio is quite significant.

Bilal makes this complex space rather simple and easy to understand. We spoke about his background, the need for insurance, the risks different types of projects face, the growth he’s anticipating and much more. If you’ve long wondered about the risks of carbon projects, this conversation will shed some light on the space and one approach to unlocking its potential.

• 00:58 — Introduction to carbon market risks and Artio’s approach
• 02:40 — Bilal’s background and transition into carbon insurance
• 04:25 — The creation of Artio and addressing insurance needs in carbon markets
• 07:52 — Artio’s impact on financial and climate markets, and market sizing
• 11:13 — Early-stage risk phases and insurance for carbon projects
• 14:05 — Types of projects Artio insures; afforestation, biochar, rock weathering
• 15:25 — Risk assessment by project type and key differences
• 17:14 — Artio’s market positioning, product traction, and offering insurability assessments to developers
• 20:41 — How Artio’s workshops educate insurers and demonstrate risk modeling
• 22:46 — Case study: How coverage and claims/settlements work in practice
• 27:25 — Market challenges: Standing out in a crowded space, growth ambitions, and automation
• 29:10 — Key surprises about the carbon market and importance of policy
• 31:47 — The role of data transparency and risk assessment in broader climate domains
• 34:59 — Other insurance use cases for managing climate transition risk
• 38:10 — Artio’s roadmap: expanding coverage, supporting developers, and scaling up

• Artio
• Sylvera
• Maya Climate
• Asia Climate Summit
• SF Climate Week
• CORSIA Insurance

• Bilal Hussain

The vast majority of my interviews have focused on innovations, investing and advocacy related to climate mitigation – that is, what we can do to cut greenhouse gases and minimize the rise in global temperatures. What we do or don’t do now, will have lasting consequences and it is climate mitigation that is driving the transformation of the global economy. So it’s not surprising that mitigation dominates climate investing.

Adaptation and resilience, meanwhile, focus not on limiting or reversing climate change but rather on improving quality of life in a warmer world. Adaptation ventures receive only a small fraction of climate investments, but rising temperatures are creating tremendous demand for a new category of products. In a joint report by Boston Consulting Group (BCG) and Temasek, it’s estimated that between $500 million and $1.3 trillion could be spent annually by 2030 on technologies that help people adapt to a changed climate.

That’s the opportunity Darren Clifford is targeting with a new fund called Adapt[us]. Darren has worked for two decades on new markets as a founder, consultant at McKinsey & Co, and as an angel investor, and I found his perspective on the climate adaptation market to be packed with nuance and insight. We spoke about his background, three different categories of adaptation tech, the unique challenges they face, how they’ll make the future more livable, and much more.

• [02:45] Darren’s Background & Career Journey
• [06:39] Why Focus on Climate Adaptation?
• [08:07] Insights from Angel Investing & Supporting Founders
• [12:14] Why Adaptation is Underfunded; Adapt[us] Fund Overview
• [16:19] Challenges in Scaling Adaptation Solutions
• [17:31] Adapt[us] Fund: Focus & Stage, Why For-Profit
• [18:53] Measuring Impact & Third-Party Well-being Validation
• [23:10] Market Segmentation: Resilience, Repair & Recovery, Demand Adaptation
• [25:38] Market Size and Investment Allocation
• [27:50] Business Model Challenges for Adaptation Startups
• [30:23] Concrete Examples of Target Companies
• [32:59] Adapt[us] Venture Building Approach & Founder Support
• [36:42] The Venture Builder/Capital Model: Criteria & Structure
• [38:27] Norwegian Talent & Global Competitive Advantages
• [41:03] Building a Movement, Not Just a Fund
• [42:06] Short-Term Goals for Adapt[us] & Team Building
• [44:41] Closing Remarks

• Adapt[us]
• BCG x Temasek Report: The Private Equity Opportunity in Climate Adaptation and Resilience
• Toronto Climate Week
• GIC Report: Sizing the Inevitable Investment Opportunity: Climate Adaptation
• WRI Study: Strengthening the Investment Case for Climate Adaptation: A Triple Dividend Approach