There’s a lot of buzz around the Climate Bricks framework—billed as the missing manual for scaling climate tech. If you’re raising funds, it’s a must-read. But if you think it’s a roadmap for scaling successfully? Think again.
Here’s the hard truth: Climate Bricks is not about how to scale; it’s about how to raise money. That’s not a critique—VCs wrote it, and their job is to allocate capital. And they’ve done an impressive job, analyzing 3,000 companies and 12,000 data points to define seven “bricks” (business models) for scaling climate tech.
It’s insightful for fundraising. But let me break down where its advice can steer you right—and where it might leave you stranded on the factory floor.
What Is Climate Bricks?
Climate Bricks identifies seven ways to scale climate businesses, from gigafactories to software. For each brick, they outline three things critical to show investors. These recommendations help you cross the valley of death and secure funding.
But here’s the rub: getting funded doesn’t mean you’ll succeed in scaling. Once the money is in the bank, you’ll need to rethink the playbook. Let’s unpack the bricks—and their blind spots.
1. Gigascaling: Building Big, Fast
Think batteries, EVs, or green steel. Climate Bricks’ advice:
Show a roadmap to cost competitiveness.
Build FOAK (first-of-a-kind) and scale rapidly.
Secure take-or-pay agreements.
What works: Offtakes reassure investors. FOAK signals ambition.
What doesn’t: Execution matters more than roadmaps. And “Scale rapidly” ignores the value of starting small, mastering processes, and training your team. Just ask Northvolt. Their roadmap was impeccable. Execution? Not so much. Also, good luck securing take-or-pay agreements—customers prefer conditional offtakes and will out-negotiate you almost every time.
2. Green Deployment: Operating Assets
Solar parks and wind farms fit here. Climate Bricks says:
Build a scalable organization to out-execute peers.
Ramp up value, sales, and assets.
Deliver profitable unit economics.
What works: All of the above, but none really matters.
What doesn’t: Green deployment is a financial game. The cost of capital is king. Unless your capital is dirt cheap, no amount of operational excellence will save you from someone with a 0.5% lower borrowing rate.
3. Asset-as-a-Service: Selling the Outcome
Think heat-as-a-service or shared EV fleets. Climate Bricks recommends:
Demonstrate product-market fit.
Secure profitable unit economics.
Scale rapidly with offtakes.
What works: Sure, you need product-market fit.
What doesn’t: Scaling rapidly while ballooning your balance sheet with assets is risky. Most asset-as-a-service businesses are capital businesses, dependent on low borrowing costs. Scaling here is more about financial engineering. In operations, you need to make sure that your product works and doesn’t break. Faulty products mean services are delayed.
4. Product Disruption: Making Green Products
Electric aircraft, hydrogen trucks, or green construction equipment. Climate Bricks advises:
Build an IP moat.
Show a prototype/demo.
Establish partnerships.
What works: Partnerships are key.
What doesn’t: IP moats might wow investors, but they don’t run factories. Scaling products means getting your supply chain right, hiring skilled teams, and ensuring your shiny tech doesn’t break in the real world.
5. New Technologies: Science Projects
Think breakthrough materials or carbon capture. Climate Bricks focuses on:
Building an IP moat.
Mapping cost competitiveness.
Proving high technology readiness levels (TRL).
What works: IP to get anyone to take you seriously.
What doesn’t: Betting on markets that might never materialize (hello, CCS) is a gamble. Your tech needs to be 10x better and have a viable market today—not someday. Public funding also helps more than anything.
6. Moonshots: Sci-Fi Stuff
Fusion, quantum computing, or geoengineering. Climate Bricks suggests:
Secure offtakes (wait, what?).
Find government funding.
Build a TRL pathway.
What works: Impact funds and government grants are your best bet here.
What doesn’t: Asking for offtakes at this stage is a stretch. Most customers won’t commit to something they’ve never seen work. Get an LOI, and focus on proving your concept first.
7. Companion Software: Code for Climate
Apps or platforms that complement green tech. Climate Bricks emphasizes:
Develop an MVP with tech advantages.
Prove scalability with ARR and low churn.
Target rapid growth.
What works: I’ve no idea. Software scales differently, and I’ve never done a software project. You’ll have to figure this out yourself)
What Climate Bricks Gets Right
If you’re fundraising, follow this manual to the letter. VCs wrote it. It’s tailored to what they want to see. Play their game to get their money.
What Climate Bricks Misses
Scaling isn’t just about impressing investors. It’s about execution. None of Climate Bricks’ highlighted companies are proven scale-up successes. They’re fundraising successes. Northvolt raised billions but couldn’t deliver. Freyr hasn’t scaled yet. AtlasArgo isn’t even a builder—it’s a trader. ZeroAvia hasn’t passed certification yet.
What’s Next?
Scaling climate tech is hard, and there’s no manual for it yet. But I’m writing one. It’s based on my experience and those founders, who succeeded in scaling multiple green tech companies—and learning from what worked (and what didn’t).
Want to follow the journey? Check out my blog and podcast, where I’ll share insights for founders and operators trying to scale climate tech. And remember: the real test starts after you’ve raised the money.