Incubators, Cities, and Philanthropy Coming Together in Community Sandboxes to Advance Equitable Climate Innovation, American Entrepreneurship, and Job Creation

It is no secret that federal dollars for climate action and innovation have become scarce as of late. Given the about-face in Washington, how do we continue to advance American entrepreneurship from all corners of our communities, innovation that lowers energy bills and quality of life, investments that reduce risk to vulnerable communities, and continue to create jobs and economic opportunity?

That’s why LACI supports the groundbreaking work of incubators around the country via NCCEI (and we gathered this week in DC to make our case for federal funding). We need to lift up and get support for incubators helping entrepreneurs in every corner of our great nation.

At the same time, how do we help cities tackle the challenges they face, whether it be air pollution and congestion from goods movement and package delivery, or seeking innovation to better protect and resiliently rebuild communities destroyed by climate disasters like the recent fires in LA?

The answer may lie in a deeper partnership between cleantech startup incubation, cities grappling with the realities of the climate crisis, and philanthropy looking to create jobs and reduce pollution in frontline communities which disproportionately experience deadly air pollution. Together, these partners can create an innovation sandbox. It may evoke a sense of play, but by bringing the best of everyone to collaborate in the innovation sandbox, we can see what works, and scale the best solutions.

LACI is demonstrating the power of this unique kind of partnership through our City Climate Innovation Challenge (Challenge). Growing out of a 2019 study by PwC, LACI, and C40, the Challenge has emerged from a concept to a powerful platform. LACI announced the first challenge in 2023, focusing on zero emissions goods movement. Then, in early 2024 alongside our partners C40 and Climate Mayors, we announced 9 city partners to advance zero emissions delivery to unlock innovation through entrepreneurs whose technology, business model, and policy innovations could advance progress with multiple co-benefits. These cities serve as the laboratories for identifying and piloting innovation “sandboxes” to address local needs. 

Recently, we were excited to announce The Rockefeller Foundation as a new partner for the Challenge. Soon we will announce the innovations these funds will help support in several of the cities, which will be critical to seeing what works so we can scale the solutions. The result: fueling economic growth and job creation that such innovations can bring to communities across the country. 

One innovation that LACI has already supported thanks to philanthropic partners is to help NYC study a policy innovation for an indirect source rule to reduce air pollution from the growing number of diesel trucks bringing goods to warehouses, and then to people’s homes and to businesses. Once passed and implemented, this will help support investment in last mile delivery innovation from startups as well as the jobs they create.

Just as important as the Challenge itself is the essential proof that the Challenge supports–that this type of sandbox and partnership can effectively work together to address many of the most pressing challenges of our time. 

To advance progress over the next four years, we must recommit to accelerating equitable climate action and creating economic opportunity. We can do so by bringing together cities, incubators and entrepreneurs, and philanthropy into innovation sandboxes, and scale what works. I hope our Challenge will inspire others to join us, or bring partners together in their own local community climate innovation sandboxes.