Today, for the first time in history, more new global electricity capacity comes from technology than from fossils. This transition is driving down costs, expanding energy access, and making electricity cleaner and more reliable than ever. As global energy demands increase, we need new technologies more than ever before. This astounding technological transformation was largely set in motion through philanthropy over a century ago¹. During this period, private grants fueled groundbreaking advancements in science, technology, and engineering.² When these technologies standardized and price points dropped, institutional investors scaled them further. 

 

In the early days, philanthropy accounted for just 1% of GDP. Since the 1980s, the sector experienced an astounding 450% growth, reaching 5.5% of GDP today. Yet, along the way, it completely lost its transformative impact. Today, the average grant is roughly $28,000³, insufficient to fund a single salary, much less scale a breakthrough climate solution for institutional investment.

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Why has philanthropy stagnated? Many foundations consider the practice of meeting the minimum public benefit, or granting just 5% of assets in a given year, as "best practice." From this, many scatter-shot tiny grants rather than deploy strategically. As a result, the large-scale granting that had enabled the system-wide transformations of the past is today exceedingly rare. With only 2% of philanthropic capital currently going into climate, this is particularly problematic for climate solutions, which require substantial capital to scale.

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We believe the only viable path to meaningfully accelerate the climate transition is to accelerate institutional investment in it. And, the only way to do that is to leverage philanthropy at scale. 

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We do this with four important steps. 1) Pool grants to diversify the funding base while developing a strong capital base; 2) develop a model where philanthropic capital is not just granted once but strategically reinvested, allowing continuous deployment and exponential impact; 3) direct the model to scale climate solutions; and 4) pair the solutions with institutional investors, who control $165 trillion in risk capital, for further scaling.

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While these steps seem simple, executing them requires expertise, coordination, and a dedicated infrastructure—something TheNewClimate is uniquely positioned to provide.  As history has shown, transformative change begins with philanthropy. Our vision is a future where philanthropy reclaims its boldness—where philanthropists embrace risk, champion innovation, and catalyze systemic change. This vision is pragmatic. It operates independently of policy shifts or government intervention. In fact, the tools to begin are already in our hands.