July 12, 2026

Introducing Nucleation’s New Tools

Hey all,

We are very pleased to introduce a set of new tools for investors, founders and those trying to get up to speed on nuclear power. You can find these tools on our website at tools.nucleationcapital.com, an area that we plan to expand.


AI through an AI filter

Topping our list of exciting new tools is an Atomic Insights-inspired learning zone. As you probably know, Rod Adams, who is a Managing Partner of Nucleation, has been hosting Atomic Insights since 1995, where he has been writing about, talking about, debating with and challenging the nuclear industry to improve both its own processes and the public's understanding of nuclear energy for over thirty years.

Atomic Insights actually started as a printed newsletter that Rod physically printed and mailed to subscribers. He has also been an active and probing participant in nearly all key industry gatherings and conferences for many decades, where he has brought the discussion of key issues to members of the industry directly. Eventually, with the inspired assistance of Sama Bilbao y Leon, then a student and young associate of Rod's, Nucleation Insights was brought online and transformed into a blog, simplifying Rod's ability to publish his articles and engage audiences, which has enabled them to grow considerably.

Atomic Insights now contains over 3,600 posts, over 360 podcast interviews and nearly 60,000 comments. This summer, recognizing that no one can take the time to review all of these articles—many of which contain information long superceded by new development, Nucleation's summer intern, Nick Noerdlinger, used AI to build a structured learning zone derived from the over 30 years of posts and podcasts contained by Atomic Insights and The Atomic Show. Users can take one of three curated routes through the material, as a Curious Layperson, a Policy & Investor,  or a Technical Deep-Dive. The site identifies content that is Fact/Science. Contested, or Opinion/Value statements. It is also possible to explore by ten different topic themes to follow your own curiousity with Dynamic FAQs. We hope you enjoy exploring this new learning tool.


K-1 Condenser

Nucleation Capital is pleased to provide our LPs with a new tool for condensing the very large K-1 reports issued by our fund custodian, Angellist Ventures. The condensed version of the K-1 retains all of the key information from the federal and state k-1s and the footnotes but eliminates certain non-critical detail pages. A 180 page k-1 from Angellist can be condensed down to 20 pages, simplifying the tax accounting. We recommend that you generate a condensed verion of your K-1 using this tool but also send the original K-1 pdf and csv files to your accountant.


 

Non-Dilutive Capital Database

Nucleation Capital is pleased to provide our founders and other entrepreneurs with access to Cap Stack Compass' community map of non-dilutive funding sources, for when equity is not the right funding vehicle.  The Cap Stack Compass community has created an AI-powered discovery database that covers over 300 lenders, foundations, family offices and other alternative capital providers which have capital available for climate-focused ventures.


 

July 4, 2026

Our best protection from heat? Trees: nature’s biologic air conditioners

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Trees and Weather

Forest loss graphFor many, celebrating July 4th brings out patriotic sentiments, a sense of marvel at our country's founding, its multi-century endurance and appreciation for the clear articulation of rights made by our founders as to the underlying and undeniably humanist principals of our democracy.

Among those in the nuclear industry, we are also celebrating the successful achievements of several innovative nascent criticality events among other sector advancements, marking the impending arrival of a new generation of advanced reactor designs, which some have taken to calling the "Golden Era of Nuclear Power."

These technical achievements are truly inspiring but the moment is overlaid by record-breaking heat conditions, reminding us of the frightening reality that climate change is here. It is already dishing out scorching heat, strained energy systems, devasted agricultural and forest areas, declining wildlife, hotter and more acidic oceans, extreme weather events and increasingly taking lives and/or destroying livelihoods.

For those suffering from extreme heat this July 4th weekend, as millions in Europe and the eastern coast of the U.S. currently are, there is both good news and bad news. The good news is that if you can get somewhere where there is air conditioning, you won't die from the 100+ ∘ F heat. Probably you'll feel quite comfortable, so long as your power stays on and your air-conditioner continues to work—even though the energy powering your air-conditioner (with a few exceptions) is simultaneously making the planet hotter.

The bad news is that humans appreciate mechanical air-conditioners that cool a room or a building a lot more than they appreciate nature's most perfectly evolved biologic form of air conditioner: trees and forests. It turns out, if we want better protection from the extreme heat that our emissions are causing, we need to protect forests from senseless destruction. Their enormous and yet under-appreciated capabilities for regulating temperature, moisture, air pressure and wind have developed over millions of years and they use exactly the same physics to cool the earth as your A/C works, though on a vastly different scale and with other added benefits.

Tragically, we have continued to devalue the importance of trees and forests—even many environmentalists see them just as a form of carbon storage—and so we have been destroying them at record levels. This is extremely shortsighted but the result of the fact that so few actually understand how complex and critical the role forests play, especially in a climate stressed world. If forests had had a founder like Elon Musk to make the global pitch to investors on how incredible tree technology really is and demand trillions of dollars in valuation for their services keeping earth inhabitable, the story might be different.

We don't. For now, the closest we have is Dr. Anastassia Makarieva of the non-profit, the Biotic Pump Greening Group, which is making the scientific, academic and social media case to help people understand how and why forests are such an important part of ensuring the livability of our planet. Reading Dr. Makarieva's substack, Biotic Pump & Biotic Regulation, will blow your mind with the descriptions of the physics involved in the mechanisms by which forests control wind, make rain, and cool the earth. But, in honor of the July 4th holidays, I'll save you hours of reading by condensing some of Dr. Makarieva's key points and explain why you should think of forests as planet Earth's continent-scale air-conditioners and rain-makers. Once you understand that, it become easy to understand that the fewer we have left, the hotter and drier it will get.

Dr. Makarieva has made the case that forests act as earth's biotic pump (which she describes as working a lot like a steam engine), helping to bring in warm air containing moisture that was evaporated from over the seas and help to wring the moisture out by causing clouds to form and stimulating pressure changes to allow rain to fall down while ejecting the heat out into the upper atmosphere, where the pressure differential causes the winds that push cold air out over the ocean again, where it sinks, warms, loads up on water and repeats the cycle again. Her concept of this atmospheric pumping action explains the essential physics underlying the processes that are actively controlled by the forests through transpiration, evaporation, condensation and other mechanisms, which run on the same core physics and principles — leveraging the physics of phase changes of water — to operate a form of planetary air-conditioning — at a wildly enormous scale.

An air conditioner is a form of reverse heat pump: refrigerant evaporates inside the unit, absorbing heat from room air (that's the cooling), then a compressor forces it to condense outside, dumping that heat outdoors. As a side effect, room air passing over the cold evaporator coil drops below its dew point, so water vapor condenses out and drains away — the air comes out both cooler and drier, which is why AC feels so much more comfortable than the same temperature at high humidity: dry air lets your sweat evaporate and carry heat away from your skin.

A forest does something structurally similar but runs as an open, self-powered loop rather than a closed mechanical one. Transpiration is the evaporator side: trees pump enormous volumes of water from soil to leaf and release it as vapor, and that phase change for the water absorbs latent heat right at the leaf/canopy surface — which is the literal, physical reason it's cooler under a tree, which is an evaporative-cooling effect (such as what an old-fashioned swamp cooler uses). The condenser side happens later and higher up: as that warm moist air rises and cools, the vapor condenses into clouds and rain, releasing the latent heat at altitude, where it's far easier for the planet to radiate it away to space.

In contrast, something Dr. Makarieva describes as the "Super Greenhouse Effect," explains why heat trapped near a humid surface can stop escaping altogether, thus generating truly staggering heat that the body cannot reject through sweat, and thus can often be fatal, such as the prolonged heat waves we are seeing now. Which is one of the many not well valued services provided by forests, which do the hard work of getting heat rising up and out into the upper atmosphere via cloud condensation, which explains why some regions are better protected from long, lingering heat waves and heat-related deaths than others.

Here's the elegant and magical part: what if a hightech founder told you that their technology required zero electricity to work and just pure solar energy? Would that make you want to invest? What if you could buy an air-conditioner whose refrigerant could keep circulating without needing any power? In Makarieva's biotic pump, condensation itself does that job. When water vapor condenses aloft, it removes molecules from the gas phase back to liquid, which falls as rain and causes local air pressure to quickly drop (a change we've all felt but didn't understand). That pressure drop is what then sucks in more moist and dense air horizontally from the ocean, which we experience as wind coming in from the ocean. This is what keeps the whole cycle running and keeps carrying  moisture from the ocean inland. Forests don't need a compressor or electricity because the condensation event at large scale is the compressor — it's a self-sustaining engine powered by sunlight (as a source of heat), physics which makes warm air less dense, thus lighter, gravity (which makes cold dense air sink) and biology (in the form of healthy, natural and diverse forests, which have evolved a bag of tricks that we still barely understand but which can add extra transpiration moisture, spores or other particles into the air to juice the pressure and moisture content that ensures that rain happens overhead.

Forests don't just provide cool shade: they manage temperature like an airconditioner, but they also manage humidity and rain. An AC's whole comfort payoff comes from pulling heat out of a room, producing a little waste moisture in the process. A forest does the opposite at landscape scale: by keeping transpiration high, it keeps atmospheric moisture concentrated enough to fuel that condensation engine, which is precisely what lets it "trigger rain at the right time, in the right place, in the right quantity" (as Dr.  Makarieva puts it) rather than just letting incoming moist wind pass over dry land with nothing to condense it. An AC discards the moisture it removes as waste. A forest's whole function is to control the moisture that keeps it alive and well, while maintaining enough moisture in the air that condensation and pressure differentials can keep the pump running.

Solving climate change is not a simple process. To stop increasing the forced warming of the atmospher, we must urgently transition away from carbon-emitting energy sources (both fossil fuels and biofuels), which is why the world is now working towards tripling or quadrupling nuclear power. But, because we already have too many large molecules in the atmosphere, we should try to prevent atmospheric warming where possible, by increasing global albedo (expanding areas that reflect solar photons back into space rather than allowing them to be absorbed (such as white roofs, grass, trees, forests and snowcover).  Additionally, we must begin to remove the excess carbon and methane from the atmosphere and ocean, through direct air capture, carbon dioxide removal, and other methods that will lead to reduce GHGs that serve as atmospheric warming elements. That work must also be done by energy sources that don't emit carbon, which is another reason to support the expansion of nuclear power.

Which is why so many of us are celebrating the achievements of the last year in nuclear, which have brought the emerging generation of Gen IV nuclear designs to a new level of readiness. But between now and when we have seen substantial progress towards the above goals, we are in for increasing levels of heat and discomfort. We must work collaboratively to protect what's left of the earth's natural forests — now down to just about 8% of available land — and even begin to regenerate them as the planet's only source of live-saving natural air-conditioning. Without these forests, we'll experience the worst effects of the heating that our emissions have caused as if we were standing out in the field on a hot, sunny day without the protection of the shade of a tree.

By Valerie Gardner, Founder and Managing Partner of Nucleation Capital and life-long tree hugger.


References:

BBC, Tropical forests destroyed at fastest recorded rate last year, by Mark Poynting and Esme Stallard, May 20, 2025.

Columbia University, Climate Science, Awareness and Solutions, "Global Warming Has Accelerated: Are the United Nations and the Public Well-Informed?, published in Taylor & Francis, February 3, 2025 by James E. Hansen, Pushker Kharecha, Makiko Sato, George Tselioudis, Joseph Kelly, Susanne E. Bauer, Reto Ruedy, Eunbi Jeong, Qinjian Jin, Eric Rignot, Isabella Velicogna, Mark R. Schoeberl, Karina von Schuckmann, Joshua Amponsem, Junji Cao, Anton Keskinen, Jing Li, and Anni Pokela

Biotic Regulation and Biotic Pump Substack by Dr. Anatassia Makarieva, an atmospheric physicist, along with occasional guest authors.

Biotic Pump Greening Group, explaining the technological marvels that are trees and working to restore degraded forests to make sure that they and their functionality is repaired.

David Roberts' Volts Podcast: How to keep people cool without making the planet even hotter, June 24, 2026, with Ankit Kalanki, unpacking the the hidden world of AC refrigerants.

June 23, 2026

Vital Climate Science Resource Re-emerges As Non-Profit

Climate.us launches independent website for trusted climate information

For more than a decade, NOAA’s Climate.gov website was among the U.S. government’s most important platforms for climate information for the public. At the start of 2025, if someone in the U.S. googled “climate,” Climate.gov was the top result. It served 15+ million visitors in 2024 and had more than half a million social media followers and its reach was growing every year.

In the first half of 2025, Trump administration officials at NOAA terminated Climate.gov’s full-time federal and contractor staff, ordered removal of content, and redirected the home page to a page under more direct control of political appointees. With little fanfare, Climate.gov found itself unable to continue its operations which would deprive the public of a highly trusted source of climate information. Finding themselves unable to permit this loss, former Climate.gov staff decided to take matters into their own hands to continue the site's mission. In June, 2026, they launched Climate.us, as a new online platform that will carry on the legacy of Climate.gov and  even expand its scope.

A new home outside the federal domain allows the team to rescue Climate.gov and other federal assets, including the Fifth National Climate Assessment,  bringing key climate information together under one roof. The Climate.gov team, which has long excelled at delivering elegant content through which the public, journalists, educators, and students could easilylearn about climate, will now build a next-generation platform expanded to serve new audiences—climate service providers, community planners, app developers, etc.—seeking data and tools for analysis and decision-making.

Climate.us is now run by an independent nonprofit entity hosted and managed by Multiplier, a 501(c)(3) organization. An advisory panel with members representing target audiences and stakeholders will guide the site’s scope of contents and utility; science and data experts will help content teams ensure information is based on the best available science. We are thrilled by the heroic actions of the Climate.gov staff and their bold, forward-thinking strategy to safeguard public access to vital, trusted climate data and services. We have provided a donation in support of this effort and hope you will too. Please visit the Climate.us fundraising site and consider providing support in any amount.


References:

Climate.gov, no longer providing climate data according to this notice:

UPDATED: June 24, 2025. In compliance with Executive Order 14303 (“Restoring Gold Standard Science”), the White House Office of Science and Technology Policy’s June 23, 2025 Memorandum (“Agency Guidance for Implementing Gold Standard Science in the Conduct & Management of Scientific Activities”), 15 USC § 2904 (“National Climate Program”), 15 USC § 2934 (“National Global Change Research Plan”), and 33 USC § 893a (“NOAA Ocean and Atmospheric Science Education Programs”), you have been redirected to NOAA.gov. Future research products previously housed under Climate.gov will be available at NOAA.gov/climate and its affiliate websites.

Climate.us, rising from the ashes of Climate.gov.

GiveButter Climate.us Launches New Independent Website for Trusted Climate Informtion by the climate.us team.

YouTube Video, Climate.us: independent, nonprofit, and immune to politics, May 2025.

The GuardianScientists breathe new life into climate website after shutdown under Trump, by Eric Holthaus, Aug 30, 2025.

New York Times, Former NOAA Employees Revive Climate Site Shut by Trump Administration, by Quinn Glabicki, June 23, 2026.

February 23, 2026

Pronuclear Actions

Nuclear energy is seeing a surge of activity and interest—but obstacles remain. Given the growing number of important opportunities to for individuals to show their support, we're now listing such initiatives as best we can.

December 10, 2025

Gratitude in Greens and Blues

Understanding Biotic Regulation

The challenge of addressing climate change is extremely complex. Even reducing emissions from energy use—as deploying more nuclear will help us to do—doesn't ensure climate stability for future generations. Fortunately, there are things we can do now to better protect our current and future climate and, in appreciation of our investors, advisors and supporters, we are donating to a group whose insights around "biotic regulation" can make a big difference in how humanity fares.

It turns out that forests play a critical and pro-active role in climate change dynamics. Forests, and especially old-growth rainforests, can help to reduce the impacts of our planet's warming. The mounting levels of CO2 in the atmosphere are adding tremendous amounts of heat forcing: that is certain. What is less certain is how severely we'll feel those impacts. With healthy forests, we're much better off.

Emerging from the work of a group of atmospheric physicists, ecophysiologists, and biologists, is an awareness that, weather is not uniform and extreme weather events aren't being distributed equally. Forests, rather than being simply passive stores of carbon, are active participants in controlling weather, particularly the wind and hydrologic cycles. This means, where there are forests, the weather will be more regular, more temperature controlled and more normal.

How do trees and forests do this? They leverage physics, chemistry and their own biology to regulate weather. Through spreading canopies and networks of roots, trees collaborate in keeping the land cool and moist. This cooler air can generate cloud cover, which in turn generates rain and limits the penetration of sunlight, limiting heating impacts and droughts.

Trees can also use their ability to transpire—release moisture from leaves—to help increase the level of humidity in their vicinity, which can increase the air's moisture content and actually hasten rainfall. Clouds in turn reflect the sun's radiation back out into space, reducing heating in their areas despite the higher concentrations of CO2.

Forests, we have learned, have evolved on the planet for millions of years and they have adapted by being able to moderate their own climate. Trees use a number of physical mechanisms—rising warm air, denser cool air and the effects of condensation, to influence winds to suck moist dense cooler air from the seas onto the land and blow warmer air out to sea. Forests are not passive plants: rather, they can act as a massive biologic organism that can actually impact the physics in their environment to trigger rain. Not only is this good for them—giving them the fresh water they need—it is also vital to humanity.

Dr. Anastassia Makarieva, author of the Biotic Regulation substack, frequently discusses this complex blend of physical, chemical and biologic forces that form what she describes as a "biotic pump" that moves water from the ocean to the land. She has argued persuasively that forests play an active role. Further, that thinking that the primary value of forests is in their use as a store of carbon, is failing to recognize their vital function as a force that literally drives a large portion of the hydrological cycles of the planet.  Dr. Makarieva’s writing helps readers recognize the problem of focusing climate efforts exclusively on the issue of carbon emissions and not paying attention to the proactive role of forests as a moderator of extreme weather and protecting them . . . from being actively leveled.

As important as nuclear power is to humanity's ability to reduce emissions, preserving forests is equally important as a way to better prevent extreme heating effects from causing damange to vital ecosystems and human systems. Protecting our natural forests and especially rainforests is key to lengthening the runway for maintaining cooler temperatures and ensuring there is continued rain—even as emissions drive higher global temperatures. Therefore, in addition to our usual year-end support of non-profit groups protecting our nuclear power assets (blue), this year we are donating to the Biotic Pump Greening Group (green), which is working to increase our understanding of the role that forests play in protecting their own ecosystems.

Learn more below:

BIOTIC PUMP GREENING GROUP

About

The Biotic Pump Greening Group Institute is a Brazilian-based non-profit scientific, technological, and innovation organization focused on promoting a paradigm shift in combating Climate Change, ecological restoration, and reforestation. Our core mission is to advance the study of the Biotic Pump Theory and develop innovative practices for ecosystem protection, contributing to the defense and preservation of the environment and the promotion of sustainable development. To achieve this, we support scientific research, design restoration projects, organize educational events, and foster scientific and political activism.

For more information, you can reach out to Carlos Nobre Camargo or Dr. Anatassia Makarieva. If you'd like an introduction, we'd be happy to make that.

Instituto BPGG - Biotic Pump Greening Group:

CNPJ: 59.958.061/0001‑09
Avenida Alfredo Ignacio Nogueira Penido, 335, Sala 706
São José dos Campos – SP
CEP: 12.246‑000
Banking information:

BRADESCO Bank Brazil
Swift: BBDEBRSP
Instituto BPGG - CNPJ 59958061/0001-09
Branch: 06012
Account: 000018678
Iban: BR78.6074.6948.0601.2000.0186.783C.1


Other Groups Working to Protect Rainforests

1. Restore established by Michael Kellett, which collaborated with the Biotic Pump team on organizing an "Embracing Nature's Complexity" conference in Munich in 2024.

2. Mongabay founded by Rhett Ayers Butler, one of the leading providers of ecological journalism, reporting on the state of forests, the often nefarious destruction being wrought on rainforests by corporations and the efforts and challenges of those who seek to protect them. Mongabay was the first big environmental news outlet that covered the biotic pump story, initially back in 2012, with more recent follow ups.

3. Amazon Watch, a 30-year old 501(c) organization, works together with and in support of the Amazon's Indigenous Peoples and allies calling for the Amazon to be free of oil, gas, mining, and all extraction and for the U.N. and Amazonian governments to protect the Amazon from deforestation for palm production or other destructive activities.

 


Groups We Support Working to Protect Nuclear

1. Mothers for Nuclear: Was started on Earth Day in 2016 by two moms who want to protect their children’s future on this planet. They were initially skeptical of nuclear, but through many years of questioning and working at California’s last remaining nuclear plant, they gradually changed their minds. Now they support nuclear as our largest and most hopeful source of clean energy, vital to addressing some of our world’s biggest challenges: climate change, air pollution, and energy poverty. Now, we have an organized way to share our stories and begin a dialogue with others who want to protect nature for future generations.

2. Stand Up for Nuclear: Works to advance nuclear energy worldwide by activating leaders, driving action, and fostering informed public engagement. Since 2019, Stand Up for Nuclear has grown the international movement, uniting citizens and organizations to champion nuclear energy as a key to securing our clean, abundant energy future. They strive to create a future where nuclear energy is embraced as a reliable and sustainable solution for a low-carbon world.

3. Californians for Green Nuclear Power: Is dedicated to promoting the peaceful use of safe, carbon-free nuclear power, and to keeping Diablo Canyon Nuclear Power Plant open, so it can continue in its important role of generating clean energy for the benefit of California’s economy.

September 18, 2025

China Weighs Coal-to-Nuclear Conversion at Scale ()

With advanced reactors already operating, China may be uniquely positioned to convert retiring coal plants into nuclear facilities...

August 1, 2025

Europe’s Nuclear Rebound ()

The Trump Administration and the European Commission unveiled a trade accord in which the EU pledged to invest $600 billion in U.S. goods, including nuclear technology and fuels, to strengthen transatlantic collaboration as the EU works to reduce its reliance on Russian gas and nuclear fuel.
 

July 17, 2025

The Trillion-Dollar Price Tag of Climate Inaction

Texas flooding

Climate Damage Is Already an Economic Line Item—Just Not One We Recognize

By Ian Brusewitz and Valerie Gardner

Over just the past 12 months, the US has spent nearly $1 trillion on climate-related disaster recovery and infrastructure damage. That’s 3% of GDP — money that could have gone toward innovation, productivity, benefits, or debt reduction. Instead, it's being rerouted into extreme weather damage cleanup, reconstruction, and emergency response. According to Bloomberg Intelligence, this surge in climate-related spending has effectively become a "stealth tariff" on Americans: a hidden cost that shows up not as a line item, but in the form of higher prices, larger insurance premiums, and government spending that collectively erode household budgets and wealth without being labeled for what it is. The conversation around climate change often centers on long-term risk — but the reality is that US citizens are already paying an average of almost $3,000 annually towards covering the costs of our worsening climate, even if these costs are not specifically identified as such.

This economic burden isn’t theoretical — it’s already bleeding into the real economy in visible, destabilizing ways. Climate-related costs are no longer confined to isolated events or specific regions. Climate change is indifferent to boundaries, and its financial impacts are bleeding into housing markets, food systems, labor dynamics, consumer prices, and state and federal budgets. As these disruptions grow more frequent and severe, as last evidenced by the devastating fires in Los Angeles and deadly flash floods in Texas — no sector, geography, demographic, or business is immune. This suggests that as the capital allocations necessary for climate recovery grow, the environmental risks bleed increasingly into financial risks. Not only are our physical assets vulnerable, but so are our financial assets. This then raises the stakes of where and how to invest.

Insurance and Public Safety Nets Are Starting to Fray

As the economic footprint of climate disruption expands, the institutions we’ve historically relied on to manage risk are showing cracks. Insurance is becoming a visible point of failure in that equation. In 2024, Hurricane Helene hit Florida as the strongest storm ever recorded in the state’s Panhandle. Days later, Hurricane Milton followed. Combined, the two storms caused $113 billion in damage. Then came the devastating California wildfires in January 2025, burning through L.A. suburbs, which added another $65 billion to the total. The LA Times has since estimated total fire damage could exceed $250 billion, making it one of the costliest fire seasons in U.S. history. And, most recently, the devastating Texas floods — with damage estimated at upward of $22 billion — don't even account for the tragic loss of life from these events. 

Historically, the federal government covered about one-third of climate-related disaster costs. That share has since dropped to around 2%, leaving municipalities and states to issue debt or delay recovery projects, and shifting more of the burden onto insurers and property owners. In 2023, insurers covered approximately 70% of the $114 billion in U.S. climate-related losses, according to the Congressional Budget Office. Because of rising costs, insurance premiums have doubled since 2017, including a 22% spike in 2023 alone. These increases aren’t reflected in the Consumer Price Index, which means that what we’re calling "inflation" may actually be something distinctly different. The question we can ask is whether or not people would make different choices if these embedded costs were more clearly labeled as a "Fossil Fuel Waste Damage Premium" or something similar. This lack of clarity and failure to accurately attribute these rising costs to what we think of as cheap fossil fuels means that we understate the full costs and consequences of our use of these fuels.

The "Tragedy of the Horizons" Issue

In 2015, former Bank of England Governor Mark Carney coined the phrase "Tragedy of the Horizons" to describe the problem that results from the fact that people want what's cheap for them today and are unwilling to pay more for something even if it is better for them or their children in the future. The same problem exists at every level in the investment world: financial actors operate on quarterly cycles, while climate impacts unfold over years or decades. This mismatch between how we invest today versus what we need for tomorrow means markets routinely discount the long-term consequences of inaction, prioritizing short-term returns over long-term stability, even when instability is well predicted. The result of this short-term orientation is a structural disconnect that undercuts our ability to invest in climate action and solutions, so as to limit the long-term damage we will inevitably have to pay for, before it gets really bad.

A decade later, this structural blind spot surrounding investing in climate solutions persists. At a recent Financial Stability Board meeting, a U.S. Treasury official dismissed climate concerns unless they posed an "imminent" financial risk. But that logic depends upon people not recognizing the growing annual Fossil Fuel Waste Damage Premium that they are already paying. In addition to revealing an utter failure to understand the real-world progression of climate impacts and looming tipping points, which are beyond "imminent," they are being expressed with disasters everywhere, even if these costs are economically masked and not clearly identified as climate costs. This disconnect is one of the clearest reasons capital hasn’t shifted meaningfully towards investing in the technologies that can enable the energy transition to the extent that we should. So long as people don't realize how expensive climate inaction actually is, human nature tragically rewards inertia, which means that both the damage done in the interim and the costs of solving climate change will continue to rise.

We’re Still Underestimating the Real Costs

Surveys from Yale’s Climate Change in the American Mind series show rising concern among Americans about climate change. Yet, far fewer people connect climate change directly to the rising costs of food, insurance, consumer products, or energy prices. This perception gap matters. When the public doesn’t see their rising costs as climate-driven, there’s less support for regional climate mitigation efforts, long-term adaptation investments, or even innovative clean energy investments that can help accelerate the energy transition, reduce the impacts of future extreme weather events, a hedge the rising climate risks to their overall portfolio.

While consumer awareness lags, markets have begun to price in climate risks. Bloomberg tracks a basket of 100 companies in insurance, infrastructure, and disaster response that have outperformed the S&P 500 by 7% annually. Capital is adapting faster than federal policy — and faster than public awareness. This divergence captures a core tension. While markets have begun reallocating capital toward climate adaptation — outpacing both federal policy and public awareness — the broader system still treats climate disruption as a distant risk, even though the costs are already embedded in household budgets increasingly squeezed by insurance premiums, rising costs, and disaster recovery bills not covered by insurance or the government. Climate impacts and costs are no longer theoretical or negligible. They are already large, compounding, and for many households, causing significant budgetary pain. And yet, despite the mounting data, policy and public sentiment lag. Yet, there is very little recognition of how these climate costs are escalating or communication to the public about the real price of our government's climate ignorance and inaction.

A Smarter Way Forward

The trillion-dollar annual cost of climate inaction isn’t a projection — it’s already here. It reflects not just extreme weather, but the fallout from underbuilt systems and delayed clean energy investment. We haven’t invested adequately in low-carbon technologies that can reduce and eliminate carbon emissions at scale and possibly even begin to repair the damage that has already been done to the climate. Investments lagged because investors doubted the need for these technologies as well as their commercial viability. Clean energy technologies that were seen as more expensive than fossil fuels were deemed less competitive in today's market and hence, not a good investment. But if we begin to factor in today's Fossil Fuel Waste Damage Premium plus the growing costs of not having those technologies — namely the ever-escalating costs of climate damage — then these clean energy solutions really start to seem attractive.

This is where next-generation nuclear becomes decisively appealing. Not only does it deliver clean, dense, reliable, and dispatchable power — but it generates power (and so earns money) without relying on the weather or being vulnerable to it, which is a growing risk to renewables projects reliant on the weather cooperating. As both a hedge against the systemic economic risks of climate disruption and as a source of long-term returns and near-term risk reduction, nuclear power offers a uniquely strategic return. If the Fossil Fuel Waste Damage Premium is now a recurring cost, the only rational move is to invest in the most scalable solutions that cut exposure to climate risk, preserve economic value, and secure a livable future.


References:

Bloomberg, US Spending on Climate Damage Nears $1 Trillion Per Year,” by Eric Roston, June 17, 2025.

Bloomberg, Carney’s Risk Warning Reverberates as Global Regulators Disagree Over Climate,” by Alastair Marsh, June 19, 2025.

Congressional Budget Office, Federal Insurance and Disaster Spending, September 2023.

Los Angeles Times, Estimated Cost of Fire Damage Balloons to More Than $250 Billion, by Sammy Roth, January 24, 2025.

MSN, Texas Flood Damage to Homes May Cost Up to $22B, by Michael Walrath, May 2025.

Nature, “Warming Accelerates Global Drought Severity,” by Solomon H. Gebrechorkos et al., June 4, 2025.

NOAA, Billion-Dollar Weather and Climate Disasters, 2024 Report.

Yale Program on Climate Change Communication, Climate Change in the American Mind: Beliefs & Attitudes, Fall 2024.

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