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Why Bill Gates Believes That Climate Tech Will Be The Future For Investors?

Being the world’s 4th richest person (according to Forbes), Gates needs not being overpositive in earning from climate investments. But he still sees a sea of opportunities for those wanting to benefit from this field.

The optimistic perspective

Source: Reuters

In an online interview during the SOSV Climate Technology Summit, Bill Gates said that in the future, the returns from climate investments will equalize Big Tech’s profit.

Gates predicts: “There will be 8 Tesla, 10 Tesla in the future. And today we only know one of them.”

The value of Elon Musk’s electric car enterprise doubled year-over-year, increasing by 2,000% compared to 5 years ago.

“Everybody who invests in Tesla is very smart,” says Gates. He predicts that this achievement will spread to a wide range of companies in the near future.

“You know, there’s going to be companies the size of Microsoft, Google, and Amazon emerging out of this field,” Gates claims.

Source: Getty Images

Bill Gates co-founded Microsoft in 1975, meanwhile, Amazon and Google were established in the 90s during the development of the Internet. Currently, these are 3 out of 4 of the US’s most valuable enterprises. According to Forbes, Gates’ current net worth is $139.5 billion.

A venture capital firm based in Princeton, New Jersey, SOSV specializes in early-stage climate-tech start-up investments.

Bill Gates invests in clean technology through his company Breakthrough Energy Ventures, where  Amazon founder Jeff Bezos, Michael Bloomberg and Ray Dalio are also investors.

A word of warning

Despite being optimistic, Gates thinks that a large amount of investors’ money will be swept away when participating in this field, similar to when the Internet bubble burst before.

He also added that today’s market is like “the early days of computer software and technology”.

Gates said much of the industry is “in the experimental stage,” so investors will need to be cautious in assessing the viability of a business idea.

In addition, many projects will require huge investments before proving effective.

Techs like nuclear fusion, nuclear fission and energy storage, he said, require “hundreds of millions, or, in the case of nuclear, billions” of dollars and “You’re not sure whether those techs are viable.”

Source: Getty Images

In addition to huge capital requirements, Bill Gates said the climate-tech industry needs governmental backup through “incentives” in facilitating the adoption of zero-emission technologies.

He said that those wanting to invest in the sector with less risk can “finance the solar sector.”

Meanwhile, direct air carbon capture, hydrogen, steel, and aviation fuels are more unpredictable.

“We have a high chance to fail,” Gates said. But there’s also a lot of talk that “we have probability of success,” especially with reasonable government support.

“If someone can’t afford to take the risk, or if they expect a short-term return, then you know, maybe they should look elsewhere,” Gates said.

H/T: The National Interest

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