The City of Chicago and the State of Illinois are bidding to reinvent itself as a center for technology innovation and position itself as a leader in the emerging green economy.
And look when I mention climate change and Chicago together please don't expect our winter's to get any warmer. It's actually more likely our winters will only get more severe so apologies in advance to anyone that actually listens to me and moves here!!
In all seriousness though, its great to see the city I know and love acknowledge, strategize, and push itself into the forefront of fighting the climate crisis. Unity and a little bit of competition between the major cities on the East, West, and now Midwestern coasts will help spur the climate movement amongst millions of Americans, and ignite interest and investment into the green economy. I guess the "Rust Belt" moniker must've gotten a bit too..well, rusty for its own good.
Governor J.B. Pritzker and Mayor Brandon Johnson have unveiled a new Chicago-focused alliance that will seek to connect companies and nonprofits on initiatives to lower greenhouse gas emissions and receive significant funding from federal grants such as the Inflation Reduction Act. The alliance is called "The Chicagoland Climate Investment Alliance" and includes founding members such as the World Business Chicago, the State of Illinois, the City of Chicago, and P33 - a nonprofit founded by former Secretary of Commerce Penny Pritzker, along with others whom have thus far pledged $2 million to help kick off the effort.
And what I like about this is really the momentum coming from all angles and inclusion coming from a diverse set of parties. Mobilizing investment and spurring momentum to build a green economy will take more than a $1B investment. In fact what it really needs is community buy-in and the right players involved to encourage and enable the right opportunities. Companies, utilities, research institutions and universities all play a huge role, which is why Invenergy, Commonwealth Edison, Northwestern, UChicago, and U of I among others have been major role players in the effort.
I'll admit I'm pretty biased on my pro-Chicago stance, but what you can't disagree with is that Illinois and the City of Chicago are well positioned to tackle the climate crisis from all angles.
Here's My Take: (because I know you all love hearing what I have to say)
Transportation & Travel: As the most centrally located major city, more lines of railroad track radiate from Chicago than any other metro. In fact, over $1.3 trillion worth of freight move in and out of the Chicago region on any given year. This is all not to mention being the home of the world's fourth busiest airport in the world with over 54 million travelers annually.
- Opportunity: Decarbonizing entire transportation hubs, incubating zero-carbon fleet services, and continued innovation for passenger travel methods such as EVs and public transport.
Food & Agriculture: Need I say MORE. Chicago's known as the nation's food innovation and manufacturing capital given its geographic proximity to some of the most productive farmland in the US, its consistent and highly rated reputation in consumer food hospitality, and now it's booming agtech offerings.
- Opportunity: Enforcing regenerative and sustainable agriculture practices, enabling sustainable food lifecycle ecosystems from farm to fork, subsidizing and promoting controlled environment agriculture and precision agriculture solutions, and spurring on a market for sustainable produce and lower-emission diets.
Waste & Manufacturing: WM quite literally began in Chicago in the late 1800s which is probably why Chicago's seen as a cleaner alternative to many of its competing cities...hmmm(NYC). And as the second largest manufacturing hub in the US, the city is well positioned for industrial decarbonization and innovation towards a more circular economy given its current infrastructure.
- Opportunity: Innovation in the current waste collection, hauling, and processing model, and utilizing the significant manufacturing and recycling presence to enable more material flow into the circular economy.
Energy & Tech: As it stands, Illinois includes portions of PJM and MISO regional transmission organizations, playing a key role in energy transmission across the midwest. As well, Illinois' early adoption, and leading position on nuclear power generation as well as environmental tech relating to water, carbon capture, energy storage, and grid optimization are enablers to future solutions.
- Opportunity: Deployment of more renewable energy generation projects to make Illinois a leader in clean energy generation, improved grid infrastructure and energy storage capabilities to better increase energy resilience and affordability, and exploration and scaling of new climate-tech solutions such as carbon capture to offset hard-to-abate emissions and decrease the cost of such technologies.
But the competitive advantages are what really set us apart-
- Market Potential - The Chicago region offers climate tech startups a diverse industrial base that will enable tailored solutions and cross-industry collaboration. This diversity spans beyond traditional sectors and fosters a culture of innovation and knowledge exchange.
- Skilled Workforce - Chicago's skilled workforce, one of the largest in the U.S., provides technical expertise crucial for developing and scaling cleantech solutions, covering various disciplines.
- Local Innovation Hubs - Additionally, proximity to research institutions and universities facilitates collaboration, access to cutting-edge research, and specialized equipment, accelerating product development and innovation through partnerships and knowledge transfer.
But this of course, comes with its growing pains. For example, Chicago's green economy produced more than $18 billlion last year alone, however this was still behind the likes of New York, Houston, Los Angeles and Dallas.
C'mon Chicago, how are we about to have a smaller green economy than TEXAS cities....
Chicago overall should be performing better, or at least should be poised to perform much better, given the competitive advantages and opportunities listed prior. And we can see the inklings gradually spreading, especially with the significant presence of climate-tech companies such as Rheaply, Nature's Fynd, and LanzaTech among many many others. Leading innovators in curbside waste management such as LakeShore Recycling and WasteNot Compost, established clean energy developers such as Invenergy, and major investment players and facilitators like World Business Chicago, S2G Ventures, and Evergreen Climate Innovations all contribute to the growing ecosystem, attention, and investment being brought to the Chicago green economy.
The plan is in place and momentum seems inevitable, but the race for the heart of the green economy is still up for grabs. Chicago's opportunities and competitive/geographic advantages position us to grow rapidly in the near future, however recent growth seems to be a bit more sluggish than we would want. With key innovators, decision makers, and companies coming together, the Chicagoland Climate Investment Alliance seems keen on shaking off the rust belt and turning more than just the Chicago River green.
Read more about Chicagoland’s Plan for a Green Future here: World Business Chicago
