How Shell Basis and 500 International construction threat in African local weather tech

The transition to a net-zero economic system, which balances the greenhouse gases launched into the environment with these faraway from it, is commonly informed as a narrative of Western coverage and know-how. However the sharper check is unfolding removed from the West. Throughout Africa, Latin America, and far of Asia, international locations that can account for many future vitality use, metropolis constructing and job creation are making choices that can form the world’s carbon footprint for many years to come back.

The identical international locations additionally account for a rising share of world emissions on account of industrialisation, urbanisation, and vitality demand. Manufacturing has additionally shifted from the North, resulting in a better share of world emissions at about 63%.  Nevertheless, the duty right here is to not reduce consumption however to broaden it with out locking in carbon-heavy programs. That is the place local weather startups have struggled. 

Native accelerators in these markets are small, thinly funded and infrequently restricted to 1 nation. International enterprise companies are inclined to keep away from seed-stage local weather firms in rising economies, citing lengthy payback intervals, coverage threat and low margins. Affect capital steps in, however normally with grants or quick programmes that cease earlier than industrial scale.

Final week, I spoke with Juliette Keeley, chief affect officer at Shell Basis (SF), which helps clear vitality options, and Carrie Liauw, govt director at 500 International, a US enterprise capital agency, to grasp how each companies are backing African local weather tech startups. They broke down how the Sustainable Innovation Program (SIP), an accelerator initiative led by the 2 companies, is making these sustainability-focused startups investable earlier than they attain the toughest a part of the capital stack. 

The hassle sits on the intersection of grant funding and early enterprise capital. In Nairobi, startups in 500 International’s Sustainable Innovation Seed Accelerator usually elevate about $150,000 for six% fairness, with roughly $37,500 deducted as programme charges. 

Shell Basis, which doesn’t take fairness, has backed early-stage agri-energy pilots in Africa with cheques starting from $15,000 to $50,000. In parallel programmes elsewhere, Shell has gone additional up the chance curve;  its 2025 Shell E4 cohort in India acquired between €100,000 and €500,000 per startup. The African programme was launched in August 2025 with backing from the UK’s International, Commonwealth & Improvement Workplace, focusing on startups in vitality, agriculture and mobility.

This interview has been edited for size and readability.

How does the Sustainable Innovation Seed Accelerator join rising market startups to international mentors, traders and prospects?

Carrie Liauw: Many accelerators in rising markets function inside a single nation. Startups typically have restricted publicity to international traders, prospects, and working expertise past their dwelling market.

The Sustainable Innovation Seed Accelerator is structured to provide founders entry to international mentors and 500 International’s worldwide community, moderately than quick, market-specific help.

What does the Shell Basis truly pay for on this programme?

Juliette Keeley: Shell Basis gives grant funding to help a 12-month accelerator mannequin. The funding covers enterprise help delivered regionally, together with market validation, product-market match, capital planning and fundraising help.

The programme is non-equity. It focuses on enterprise help, with 500 International offering mentorship, networks, and toolkits to assist firms develop income. The programme helps firms from Seed by Sequence B, reflecting the place Shell Basis sees the biggest gaps out there right now.

How do you keep away from crowding out native capital or native accelerators while you step in with international funding and model energy?

Keely: Many native accelerators function at a small scale and for brief programme durations. This programme is designed to enrich, moderately than exchange, native efforts by extending founders’ entry to international traders and prospects.

In Kenya, the startup ecosystem consists of organisations akin to Baobab Community, iHub, KCIC, Delta 40, Savannah Fund and Catalyst Fund. 500 International is exploring collaboration with present ecosystem gamers. The accelerator is being delivered in partnership with the timbuktoo Africa initiative led by UNDP, with a concentrate on strengthening native capabilities alongside international publicity.

How a lot affect does the Shell Basis have over an organization’s technique in the course of the programme? The place is the road between help and steering?

Keely: 500 International gives mentorship and steering on technique and execution, however founders retain decision-making authority.

From the Shell Basis’s perspective, we concentrate on whether or not firms are serving our core buyer teams and monitoring revenue and gender outcomes. We monitor this by choice standards and KPIs. Past that, we don’t direct firm technique.

How do you determine which dangers you take up and which dangers you permit with founders or follow-on traders? What does that appear to be in observe?

Keely: Shell Basis accepts that affect threat is inherent at early phases, since revenue and local weather outcomes solely materialise as firms scale. We handle this by aligned KPIs, choice standards, and reporting necessities, whereas founders and future traders proceed to hold industrial threat.

How do you worth the price of failure? When a startup doesn’t scale, what alerts do you observe to determine whether or not the mannequin failed or the market was misinterpret?

Keely: We set milestones and cease standards tied to buyer attain, revenue uplift, and gender outcomes inside outlined timeframes. These alerts assist us assess whether or not challenges stem from execution, market assumptions, or the mannequin itself.

What components of the worth chain do you intervene in most aggressively? Product design, unit economics, governance or market entry. Why these layers?

Keely: Shell Basis works throughout innovation, scaling partnerships, and capital mobilisation. The accelerator displays this by supporting firms on market validation, product-market match, enlargement, fundraising, and community entry, moderately than specializing in a single intervention level.

What information do these startups movement again to the Shell Basis throughout and after the programme? How is it used to form future funding theses?

Keely: Corporations report on buyer numbers, capital mobilised, and emissions prevented. A 3rd-party evaluator assesses revenue impacts on prospects. This information informs future choices on investing in related accelerators and funds.

Lastly, at what level does the Shell Basis step again? What situations set off a clear exit from lively involvement?

Keely: After the accelerator ends, we evaluate outcomes associated to buyer attain, funding leveraged, and revenue affect. Based mostly on that evaluation, we might contemplate follow-on funding.