Have you ever been in the middle of a forest? On one side, there’s woods. On the other, too. Dense, sparse, in canopies, omnipresent. In the middle of this green mass, there are all sorts of animals. Jaguars, spiders, snakes and some predators. Always silent. On the lookout. Watching who enters and who seeks a way out of the forest.

It’s an orchestra. Silent.

(Shhhhh…)

Broken by a roar, a whistle or a snaking…

(Shhh… Quiri-quiri… Chirp… Chirp…. Ssssss….)

But it’s a tuned philharmonic. And sharp.

Amidst sounds near and far, the fear of the unknown dialogues with the feeling of being at home. It is dialectical in its essence and in its daily practice, because it has survived days of torrential rain, desert heat and freezing cold for some time now. The guilty ones? Yes, we have them. Us!

And you know the story well: we deforested these dense forests, emitted greenhouse gases until we could not do it anymore and that is how the human beast has been walking.

Aerial image of deforestation.

But there is hope. Hope in a very well-adjusted combination. The union between Climatetechs and GovTechs. Startups that bring innovation to the climate area and the government sphere, respectively, each of which relies on continuous investments, cutting-edge technology and persistent innovation.

So, my friend, focus on where I focus. We have a very powerful combination at the table. Climate and Gov under the Tech logic. Not only in the broad sense, but also when looking at populations that literally live inside the forests.

Because in the end, it is good to remember, the bioeconomy is a tool to achieve a better quality of life and generate wealth for these populations, in particular. But let’s not be naive either. After all, obviously, the Bioeconomy alone will not solve the problem. It is f-u-n-d-a-m-e-n-t-a-l-l-y necessary that public services are properly offered.

“Mitigating climate risks is a government agenda. Furthermore, it is also a government agenda to face the country’s infrastructure challenges”, says Adriano Pitoli, Head of KPTL’s GovTech fund.

Editor’s Note: Before talking specifically about some startups that shine in this intersection, let’s look at some numbers to prove what we’re talking about. A study by PwC shows that Climatetechs received investments of around USD 64 billion in 2023 worldwide, an increase of 70% compared to 2021. An important point is that this increase occurred amid a period of global retraction in venture capital investments. The World Economic Forum projects that the GovTech vertical will have a global business impact of around USD 9.8 trillion by 2034. The study also estimates a specific expansion of the GovTech market from the current USD 606 billion to USD 1.4 trillion in the next ten years.

As can be seen in the note above, we are talking about large numbers, and a high impact in the combination of these two fields: GovTech and Climatetech. And this is without including the effects of the already existing federal law in the spreadsheet.

Want an example? i4Sea. A startup from Bahia specializing in climate intelligence and founded in Salvador in 2016 by oceanographers, i4Sea combines data science, Artificial Intelligence and mathematical modeling to offer hyperlocal solutions that help companies manage climate risks. With a package like this, the social and climate impact it can cause is immense. This is what allowed the company to receive, in January of this year, an investment of BRL 7.5 million led by the GovTech Fund – managed by KPTL and Cedro Capital – and also with the participation of Polaris Investimentos.

Good money, right? Yes, and well spent!

With technology aimed at translating the impact of climate on operations, resources and assets, i4Sea helps companies predict and mitigate climate contingencies to reduce losses and generate revenue opportunities in critical operations. And all of this is done through the i4cast platform, developed by the startup, which uses decades of public, proprietary and Artificial Intelligence historical data to create hyperlocal climate forecasts and provide information on climate risk.

The startup was born as an innovative solution for the port sector, but it quickly realized that it could expand its operations to other markets that are also directly affected by climate change. Thus, the company evolved from a platform focused on port optimization in 2020 to a broader climate risk management system, gaining prominence for its ability to provide operational windows based on climate information with forecasts of a few hours and up to 90 days in advance.

As a result, the startup is now ready to operate, in addition to the port sector, in markets such as renewable energy, agriculture and civil engineering, areas directly impacted by extreme weather events. An example of this is its pro-bono work with the Port Authority of Salvador (BA), where it provides optimal and unsafe windows for navigation in Baía de Todos os Santos. And these helps prevent accidents.

“Our goal is to be at the forefront of climate resilience, expanding our operations to markets such as energy, agriculture and industries,” says Lima. “We will be at the forefront of markets such as energy, agriculture and civil engineering, in addition to promoting the international expansion of our operations in the maritime sector. The climate challenge is now, not in the future,” reinforces the CEO of i4Sea.

Venture capital, helping to bring things together

In addition to i4Sea, KPTL’s portfolio includes other startups that act as a middle ground between the two areas, as highlighted by Zelinski. “One example is Fractal Engenharia, which helps Belo Monte, for example, to use water resources more efficiently, generating more energy, or Santa Catarina, supporting the Civil Defense”, he says.

Founded in 2010, in Santa Catarina, Fractal Engenharia de Sistemas focuses on so-called “climate intelligence”. In short, the company uses hydroclimatic data to understand the dynamics of water in a given territory. With this, it can support decision-making and mitigate the risks of business ventures and, of course, help society in general, as many people suffer first-hand from problems with floods and extreme weather events.

Fractal Engenharia in the control room. (Photo: Courtesy)

To explain it even more simply, the startup can make rain forecasts at a detailed level, allowing us to know exactly which areas are at risk of flooding. “In addition to working with water surpluses, our systems work with water deficits, which allows us to estimate how severe a drought will be or how long a dry spell is likely to last,” says Henrique Rocha, founder and CEO of Fractal.

These examples demonstrate the importance of connecting the dots between public management and the climate agenda, showing that there are well-positioned startups in this area. And this is no small feat, because, as we have already said, humanity has had the capacity (and I mean it!) to mess up the climate system, which has resulted in increasingly frequent extreme events, harming people, companies and cities. We need to find a way to fix this. And quickly. In the rhythm of the conductor’s baton.

“What is the best government? The one that teaches us to govern ourselves”

Johann Goethe

3 Questions for…

Tatiana Schor

Head of the Amazon Coordination Unit at the Inter-American Development Bank (IDB), where she leads Amazônia Sempre, the bank’s regional coordination program for the Amazon.

(Photo: Courtesy)

1) What is the vision and central pillars of the IDB’s strategy for Amazon? What guides the bank’s actions for the region?

In 2023, the IDB governors of seven Amazonian countries (Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru and Suriname) supported the establishment of the Amazônia Sempre program, which is coordinated by the IDB under country mandate. Amazônia Sempre promotes broad collaboration among various stakeholders, including donor countries, multilateral development banks, indigenous communities, civil society organizations, and the public and private sectors. The program is based on five pillars: (i) Combating deforestation and strengthening environmental control and security in the context of national governments; (ii) Bioeconomy and creative economy, promoting alternative and sustainable economic activities; (iii) People, aiming at adequate access to quality education, health and employment; (iv) Sustainable cities, infrastructure and connectivity; and (v) Sustainable and low-carbon agriculture, livestock and forestry. In addition, it focuses on promoting the inclusion of women, indigenous peoples, Afro-descendants and multicultural communities; climate and environmental conservation; and strengthening institutional capacities and the rule of law.

2) How does the IDB’s strategy for the Amazon relate to COP30 in Brazil? What actions does the institution plan for this year in view of the conference?

To celebrate this first COP in the Amazon, the IDB is leading initiatives and partnerships to support the increase in the capacities of Amazonian countries and scale up the positive impact. COP30 is an opportunity to take concrete actions towards a more sustainable Amazon, also through the expansion of our Amazônia Sempre Program. In addition to financing, the IDB offers a set of methodologies, principles and approaches to implementing high-quality projects that aim to increase impact and mobilize private capital for Latin America and the Caribbean. The Bank and other multilateral development institutions are working as a system to generate greater impact, including strengthening national platforms to support nations in their climate goals. This improves coordination and resource allocation, ensuring the effective implementation of climate commitments and accelerating progress towards national and global climate goals. And the IDB is driving the alignment of investments in climate and nature, placing the interdependence between climate and biodiversity at the center of its institutional strategy – BIDStrategy+, its operations, policies and innovation to mobilize financing for adaptation and resilience projects in Latin America and the Caribbean. COP30 is a great opportunity for countries in the region to advance policies that mutually support climate and nature, as well as to increase investments and implementation of programs in the Amazon.

3) You have already advocated in articles the need to shift the focus from the extractive economy to a bioeconomy approach in the Amazon. What is the role of innovation from startups and the venture capital ecosystem in accelerating this transition?

The Amazon offers ecological and social characteristics for bioeconomy products and services to thrive, and the bioeconomy offers an alternative and transformative model that focuses on sustainable land use. Therefore, the bioeconomy and conservation of the Amazon are closely linked and interdependent. The bioeconomy should not be seen as the only solution for the sustainable development of the Amazon. It does not solve the region’s social and development issues in itself, but we have plenty of evidence of its capacity to have a positive socio-environmental impact on the region. When well-coordinated with strategies and investments that allow the territory to develop capacities to diversify economic activities and retain the value of end products, it has the potential to reverse deforestation, increase its climate resilience, protect biodiversity and local communities, and also support cultural heritage that is important for the maintenance of the ecosystem. To this end, innovation is essential for the development of new technologies and processes that enable the sustainable use of natural resources, based on Amazonian biodiversity, such as medicines, cosmetics and functional foods. Furthermore, innovation can improve the efficiency of resource use and reduce the environmental impact of economic activities. Startups are drivers of change and can quickly bring and scale these innovations, new ideas and technologies to the market. In the Amazon, they can benefit local communities, attracting investment and generating jobs, thus contributing to the sustainable economic development of the region. It is necessary to promote environments that are conducive to innovation to prosper and accelerate this transition, for example through facilitators, accelerators, incubators, but also venture capital that provides the funds and networks necessary for startups and other innovative companies to grow and develop their projects.