Press Release  New Analysis Finds Governor Healey’s ClimateTech Initiative Would Generate $16.4 Billion in Economic Activity

Watertown — Governor Maura T. Healey today unveiled a new analysis finding that her ClimateTech Initiative proposed as part of the Mass Leads Act would have a profound economic impact on the state’s economy. The 10-year, $1.3 billion proposal is expected to generate $16.4 billion in economic activity – representing a total 12-to-1 return on investment – and create 6,670 new jobs. The first-of-its kind strategy seeks to build off the successful model of the state’s Life Science Initiative to make Massachusetts a global leader in climatetech. 

“Investing in climatetech not only gives us the tools to address climate change and protect our planet – it's also an economic winner that will generate billions of dollars in economic activity and create thousands of jobs,” said Governor Healey. “Our Mass Leads Act will make Massachusetts the climate innovation lab for the world and strengthen our economy for generations to come.” 

“The results of this economic analysis are profound, but not surprising,” said Lieutenant Governor Kim Driscoll. “We’ve seen the transformative power of our Life Sciences Initiative, and now our administration is applying this homegrown model to the emerging climatetech industry.” 

The Mass Leads Act proposes a total investment of $1.3 billion over 10 years. That includes $400 million in capital investment in offshore wind and early project development, $300 million in operating funds for the MassCEC, $300 million for a climatetech tax incentive program, and $350 million to modify the offshore wind tax credit program. 

In addition to generating $16.4 billion in economic activity and creating 6,670 jobs, the initiative is expected to add $10.1 billion to the Massachusetts GDP and increase total income to $9.3 billion over 10 years. This new household and business activity will create an estimated $1.2 billion in new state and local tax revenues. The top five sectors that would be supported by this initiative are construction, education, manufacturing, transportation, and professional, scientific and technical services. 

“Massachusetts embodies the spirit of innovation, where companies are uniting in the fight against climate change,” said Secretary of Economic Development Yvonne Hao. “The Donahue Institute’s report proves that we have the resources to transform the climatetech sector. Through initiatives in the Mass Leads Act, we’re strengthening our competitive edge in this field and drawing in businesses that boost our position at the forefront of progress.” 

"The tools we need to combat climate change are being designed and built in Massachusetts,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “Floating wind anchors, green cement, fusion energy, recycled EV batteries -- it's all right here. These are the industries of the future, and the Donahue Institute's report makes that clear. We need the Mass Leads Act to maintain Massachusetts' competitiveness as climatetech companies grow and go global." 

“Massachusetts leads the nation in developing the technologies the world needs to combat climate change,” said Massachusetts Clean Energy Center CEO Dr. Emily Reichert. “I’ve seen the thriving climate corridor taking root from Watertown to Worcester to Western Mass., creating good-paying jobs for current and future generations. Now, thanks to the visionary leadership of the Healey-Driscoll Administration’s Mass Leads Act, Massachusetts can build on this already strong ecosystem to create THE global hub of climate innovation.”  

“Donahue’s analysis confirms what the market is already telling us: investing in climatetech is a winner. Yielding $3.3B in direct benefits, the Act will also leverage private and federal investment multiplying those benefits by over a factor of five. It’s the future, plain and simple,” said Climate Chief Melissa Hoffer. “Climate change is the defining megatrend of our time; the energy and broader market transformation underway brings massive opportunity for Massachusetts, already a global leader in clean technology development. And let’s be clear: the imperative to rapidly reduce greenhouse gas emissions is non-negotiable, as is the urgent need to make our communities more resilient. Our state’s knowledge, savvy, can-do attitude, and real world experience in leading the life sciences revolution uniquely positions us to lead the way once again. This is our moment —harnessing our power of imagination, our creative spirit, we can build a better tomorrow.” 

The Governor announced the new analysis at Via Separations, a clean tech startup in Watertown, alongside Lieutenant Governor Driscoll, Economic Development Secretary Yvonne Hao, Climate Chief Melissa Hoffer, Massachusetts Clean Energy Center (MassCEC) CEO Emily Reichert, CEO & Co-Founder of Via Separations Shreya Dave, Watertown City Manager George Proakis and local officials. 

Via Separations emerged from MIT in 2017 and recently moved their headquarters to a newly renovated mill building as part of a boom of economic development in Watertown that has seen life sciences, health care, and manufacturing companies move and grow in the City. Via Separations has developed a technology that reduces the amount of energy required in the manufacturing process, resulting in lower carbon creation, lower energy usage, and lower costs. The company has received over $800,000 in tech-to-market grant funding from MassCEC’s Catalyst and InnovateMass programs and investment financing from the agency’s 2030 Fund. Via Separations recently won a $10 million ARPA-E grant award for their pilot demonstrating the first successful implementation of their membrane technology. 

The University of Massachusetts Donahue Institute analyzed this legislation to assess the potential impact of the bill on the Massachusetts economy. MassCEC commissioned the study. 

Statements of Support 

Watertown City Manager George Proakis: 

“Watertown has been leading the way in climate mitigation and resilience. We have a very aggressive Climate Action Plan, we were the first community in the Commonwealth to adopt the Specialized Stretch Energy Code, and we have been welcoming creative climatetech companies like Via Separations to grow and thrive in our community. We are thrilled to welcome Governor Healey to Watertown today to share the economic benefits of the climatetech industry in Massachusetts. Since Governor Patrick implemented the Life Sciences Initiative in 2008, Watertown has become home to a thriving cluster of biotechnology companies. With the launch of the ClimateTech Initiative, we look forward to working with Governor Healey to grow the climate innovation industry in Watertown and help the Commonwealth become a global leader in this emerging industry.” 

Shreya Dave, CEO, Via Separations: 

“We are so proud to be from Massachusetts where the Healey-Driscoll administration is committed to creating, supporting, and developing the climatetech ecosystem for the benefit of of all constituents. Via Separations was founded in 2017 in Cambridge, and we have experienced first hand the benefits of building a company there, in Somerville, and now in Watertown, including access to world-class universities, catalytic funding from MassCEC, and a network of manufacturing partners and suppliers that enable us to deliver on our commitment to our customers.  We are extremely supportive of the investment from the administration in both their leadership and capital. We look forward to growing, innovating, and celebrating the success of the entire climate community.” 

Chrissy Lynch, President, Massachusetts AFL-CIO : 

"The apprenticeship programs run by organized labor are already training workers in the newest clean energy technologies. We are excited about the thousands more jobs in the climatetech sector through this proposal, and we are ready to make sure those jobs are union careers that grow the middle class while fighting climate change." 

Ted Wiley, President & Co-Founder, Form Energy: 

"We applaud the Healey-Driscoll Administration for its vision, leadership, and commitment to elevating Massachusetts as the global leader in climate technology through the Mass Leads Act. This bill is an investment in companies like Form Energy that are part of the growing energy innovation ecosystem in Massachusetts and would unlock tremendous economic opportunity for the Commonwealth. We are thrilled to have developed our breakthrough, low-cost multi-day energy storage technology right here in Somerville and we look forward to continuing to grow and innovate in Massachusetts with its fantastic talent pool, intellectual capital, and political leadership.” 

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