The hidden costs of getting climate innovation wrong

"Why do some climate innovations fail to deliver? Not because they're flawed, but because the business world misjudges their economics. From hydrogen to EV infrastructure, carbon-capture startups to precision farming tools, companies around the world are pouring money into climate tech. But for every promising climate innovation that scales, several more fizzle out too soon. Not because the science doesn't work. But because the business case was either overestimated or underestimated at the wrong time."

"In the race to build the future, too many businesses are still blowing it on climate economics. Some assume customers will pay for green solutions at any price. Others abandon high-potential technologies too early. And many charge ahead without evaluating the unintended consequences of their choices. A persistent myth in climate innovation is that virtue sells and customers will choose sustainability regardless of cost."

"It's not that people don't care. It's that price sensitivity hasn't vanished just because climate urgency has arrived. A mistake many innovators make is assuming that having a good solution is enough, that if the environmental benefit is clear, customers will adopt it, no matter the cost. This is often not the case, especially in markets without subsidies, mandates, or strong brand loyalty."

Many climate technologies—from hydrogen and EV infrastructure to carbon capture and precision farming—receive large investments yet fail to scale due to flawed economic assumptions. Companies often assume consumers or industrial buyers will accept higher costs for sustainability, but willingness to pay is far lower than stated preferences. Price sensitivity remains strong, especially absent subsidies, mandates, or brand loyalty. Firms sometimes abandon promising innovations too early or push solutions without assessing unintended consequences. Successful scaling requires realistic market pricing, careful timing, and attention to actual buyer behavior rather than relying on virtue-driven demand projections.

Read at Fast Company