One way to address the gap in funding for high-risk, high-reward climate solutions is to design an X-prize focused on scalable direct air capture (DAC) technology for urban environments. Traditional funding often prioritizes incremental progress, leaving breakthrough innovations under-resourced. An X-prize could incentivize teams to develop cost-effective DAC systems capable of removing significant amounts of CO₂ at a target cost, such as $100 per ton.

How the Prize Would Work

The competition could run over 3-5 years, with intermediate milestones to track progress. Teams would compete to develop DAC systems that meet specific criteria, such as removing 1,000 tons of CO₂ annually while staying under the cost threshold. A prize pool of $10M to $50M, funded by governments, corporations, and philanthropists, would attract diverse participants, from startups to academic labs. Judges, including climate experts, would evaluate submissions based on scalability, energy efficiency, and real-world feasibility.

Stakeholders and Incentives

Key beneficiaries include:

• Innovators: Funding, visibility, and validation for their solutions.
• Governments: Scalable tools to meet emissions targets.
• Society: Effective climate mitigation improving public health and stability.

Sponsors would gain reputational benefits and progress toward climate goals, while participants would be motivated by financial rewards and commercialization opportunities.

Execution and Differentiation

To launch, one could start by defining clear criteria with climate scientists, securing sponsor commitments, and announcing the prize through media and research partnerships. Unlike broader carbon capture competitions, this prize would focus narrowly on urban DAC, increasing the likelihood of deployable solutions. A pilot prize could test participation quality before scaling up.

By narrowing the scope and emphasizing real-world applicability, this X-prize could accelerate innovation where market forces alone fall short.