US government pullback fuels private data boom in climate science
As the U.S. government cuts funding for climate-related scientific services, private data firms are experiencing a surge in demand and investment. Companies like Climate X, a London-based analytics firm, are increasingly relied upon by major investors and corporations to assess climate-related risks such as flooding, wildfires, and extreme weather.
For instance, Savills Investment Management, which oversees €26 billion ($29.9 billion) in assets, used Climate X’s AI-powered risk modeling tools to estimate potential damages to 300 properties across Europe and Asia. The insights help guide investment decisions, and the firm plans to expand their use across hundreds more assets, News.Az reports, citing Reuters.
The earth intelligence sector—which provides data on droughts, pollution, methane emissions, and other climate hazards—is expected to grow by at least 10% to $4.2 billion by 2030, according to Gartner. The World Economic Forum estimates the sector could generate $3.8 trillion in economic value by then, up from $266 billion today.
The growth comes amid concerns over data accuracy and access. Private companies still rely heavily on government datasets for validation, including historical flood maps and environmental monitoring. With U.S. climate data at risk of being removed from the public domain, companies are increasingly turning to alternative sources in the EU, UK, and Japan.
Private satellite monitoring has seen dramatic growth: 666 commercial earth observation satellites were in orbit in 2023, compared with just seven in 2005. Firms such as GHGSat, which tracks methane emissions, raised $47 million this year to expand its constellation of 13 satellites. Governments and energy companies use GHGSat’s data to detect leaks, reduce emissions, and improve operational efficiency.
Public companies are also thriving. Planet Labs, a major satellite imaging firm, has seen its shares rise 190% since January. Dutch geospatial company Fugro, with annual revenues above $2.2 billion, has expanded offshore mapping for coastal management and navigation, partnering with GIS software company Esri to help small island nations address climate risks.
The sector’s growth highlights a shift toward private solutions in climate science amid declining U.S. government support, while also raising questions about equitable access to vital environmental data.
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