Animal-free for Decarbonization

Beyond Impact for Decarbonisation, Biodiversity, Climate Impact, Blue Ocean and Health & Wellness

It is baffling that most climate-first investors don’t see animal-free investments as one of the most critical ways to accelerate decarbonization. Yes, we need energy transition, and we need to think methodically about it. I would argue that we should move from fossil fuel-based to nuclear and renewable energy sources and have a portfolio of solutions with an anti-fragile approach. We must embed decentralization and the right amount of diversification in energy production. But we also need to think beyond energy; we need to think about everything we produce or consume and how it affects the planet, people, and animals. Can there be a less extractive, kinder, and cleaner way, and can we transition to newer ways of consumption and production (based on bio-economy) to help us accelerate decarbonization? The answer to all these questions is astounding, yes!

The global economy's reliance on animals significantly contributes to greenhouse gas emissions and climate change. Livestock farming alone accounts for at least 14.5% of global human-induced emissions. Removing our reliance on animals and transitioning to animal-free alternatives can drastically reduce our carbon footprint and accelerate economic decarbonization.

We have been positioning our fund <Beyond Impact> more around how our strategy of being animal-free is one of the core strategies to decarbonize, and the sad reality is it is a missed and underestimated opportunity. The opportunity is not about plant-based meats but decarbonizing the whole value chain, as the biggest emitter of CH4 is animal agriculture - we are adding CH4 emission reduction calculation in our impact report from 2023 onwards. I want to leave you with some figures for you to mull over >>

• Climate scientists have confirmed that focusing on methane (CH4) emissions—in addition to measures designed to reduce carbon dioxide (CO2 ) emissions—is crucial in determining whether global warming can be kept below 1.5°C (as per the 2015 Paris Agreement) and whether reaching climate tipping points can be avoided.

• Over 20 years, methane is 84 times more potent than CO₂ at trapping heat and 28 times more potent over 100 years¹.

• Methane is responsible for about 30% of global warming since the pre-industrial era².

• The livestock sector is responsible for about 32% of human-caused methane emissions³.

• Animal products—including animal emissions, feed, changes in land use, and energy-intensive global supply chains—account for almost 60 percent of food-related emissions and 14.5–20 percent of global emissions.⁴

While decarbonization is a subset of emission reduction, emission reduction includes a broader range of actions targeting all types of greenhouse gases (e.g., methane and nitrous oxide), not just CO₂. Decarbonization is more focused and often critical to achieving overall emission reduction goals.

Maybe I am trying to modify and expand the usual definition of decarbonization, which focuses primarily on energy transition and direct ways to reduce carbon reduction. But I would argue that the transition of consumption and production of food, materials, ingredients, pharmaceuticals, personal care, etc., to adopt an animal-free and fossil-fuel-free approach is also part of the decarbonization puzzle. Methane reduction should be an integral part of decarbonization efforts but is typically not the main focus of decarbonization because of how the term is defined and the historical emphasis on carbon dioxide (CO₂) in climate policy.

Let us look at the case for decarbonization with animal-free solutions.»

• Beyond Impact Examples: Investing in solutions like YeastUp, which uses upcycled protein from spent brewer yeast; Algama, which uses protein and ingredients from microalgae (which are excellent carbon capturers); and Ingrediome, which uses precision fermentation using cyanobacteria (blue-green algae are significant carbon sinks), can supercharge decarbonization.

• Climate Advisers (2023) (only animal-free solutions have significant promise as an agricultural methane mitigation strategy on a global scale) & PNAS (2022) (reviewed 98 mitigation strategies across 430 peer review publications and found: 1. Adoption barriers will likely prohibit livestock interventions from reaching their full technical potential; 2. even at 100% adoption, increased consumption of ruminants will more than offset mitigation benefits).

• Nature Communications published a paper, Feeding climate and biodiversity goals with novel plant-based meat and milk alternatives⁵.

  • In the 50% substitution scenario, without accounting for any carbon sequestration on spared land, GHG emissions decline by 2.1 Gt CO2eq year (31%).

• According to ClimateWorks Foundation & Global Methane Hub in their published paper Global Innovation Needs Assessment: Food System Methane, animal-free solutions could mitigate 645 Mt CO2e/year by 2030 and 1.85 Gt/year by 2050. This is about 45 percent of methane mitigation potential across all livestock-focused mitigation solutions in 2030 and 44 percent in 2050⁶.

• The recently published World Bank paper Recipe for a Livable Planet mentions that animal-free solutions have the second-highest mitigation potential, at 6.1 GtCO2 eq/year. They are outranked only by afforestation/reforestation (8.47 GtCO2 eq/year) and followed closely by reduced deforestation (6.0 GtCO2 eq/year)⁷.

There is data after data - to reduce and avoid CO2 and CH4 emissions, one of the best strategies is to invest in animal-free solutions, if not the best. I would argue it is the best strategy.

We at Beyond Impact firmly believe we are aligned with all kinds of climate investors regarding decarbonization and are educating LPs, investors, and partners worldwide on this. That is where we at Beyond Impact provide an essential alternative to energy-focused climate financing through its focus on changing what & how we consume and produce. We can spur a generational shift and decarbonize every aspect of our existence towards a healthier, kinder, cleaner world for the people, planet, and animals. Our solutions are not based on fossil fuel and extractive ways to abuse nature, but on solutions, we invest in building “in harmony with nature,” as my colleague Claire Smith described.

Let us decarbonize and help our planet breathe!

For Humanity,

Sagar Tandon

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Beyond Impact stands out as the only female-founded SFDR Article 9 "Dark Green" global VC fund of its kind. Our highly experienced and diverse team, with a background in managing over $30 billion in assets, operates in key global markets. We leverage a unique proprietary deal flow platform, granting us access to over 6,000 relevant companies and a strong European network of experts, universities, manufacturers, and technology centers.

1. IPCC. (2013). Climate Change 2013: The Physical Science Basis.

2. UNEP. (2021). Global Methane Assessment.

3. FAO. (2013). Tackling Climate Change Through Livestock.

4. What's Cooking? An assessment of potential impacts of selected novel alternatives to conventional animal products, UNEP (full report)

5. Feeding climate & biodiversity goals with novel plant-based meat & milk alternatives (full report)

6. Global Innovation Needs Assessment: Food System Methane, Global Methane Hub & ClimateWorks Foundation (full report)

7. Recipe for a Livable Planet: Achieving Net Zero Emissions in the Agrifood System, World Bank (full report)