Dan Conner, CFA, FSA

Check out my recent post on why President Trump is the forcing function for us to solve the “Missing Middle” and catch the industrial Tsunami of onshoring coming to the US!

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🌍💡 Embracing Interoperability: The Evolution of Carbon Markets 💡🌍 The landscape of carbon markets is rapidly evolving, with a significant shift towards fungibility and interoperability. What does this mean? We (at the SoHo Global Climate Fund) spoke with leading climate fund manager, Charles Bedford of Carbon Growth Partners, to shed light on this important trend in the carbon markets. It's about creating seamless connections between compliance and voluntary markets, allowing for the exchange and recognition of carbon credits across borders and sectors. This trend marks a pivotal moment in our collective efforts towards combating climate change. By enabling carbon credits to be fungible and interoperable, we're fostering a more efficient and scalable approach to carbon pricing and emissions reduction strategies. Companies and organizations now have greater flexibility to participate in markets that align with their goals. #CarbonMarkets #ClimateAction #Fungibility #Interoperability #Sustainability #Innovation #GlobalImpact

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One month left to apply!!!! Apply to NETI's Climate Tech Bootcamp Cohort 3.0, a pre-accelerator program powered by Riffle Ventures, Climate Tech Bootcamp, OHUB and Greater New Orleans, Inc. – GNO, Inc. part of H2TheFuture, a Build Back Better Regional Challenge of The Economic Development Administration. This bootcamp is a 10-week pre-accelerator program for climate tech and new energy entrepreneurs in the United States that have an interest in building in or expanding to South Louisiana. ‍ Five (5) founders from the program will pitch for a $100,000 (US) investment on the terms of their current round. Application is in the comments and here's a quick overview as well: - 📆 When: September 3 - October 31, 2024 - ⏰ Deadline to Apply: August 27, 2024 - 💻 Location: Virtual - 🆓 Cost: Free. The $5,000 per person fee is waived thanks to GNO, Inc. and The Economic Development Administration's Build Back Better Regional Challenge. - 💰 Funding: Up to $100,000 US (equity investment) in current round to the top startup selected at the end of the cohort. - 🈺 Cohort Size: 25-30 entrepreneurs - 🌍 Cohort Geography: United States - 📈 Stage: We welcome applicants from multiple stages, though having a minimum viable product is ideal.

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#Google Google announced today an agreement with Direct Air Capture (DAC) technology company Holocene for the delivery of 100,000 tons of carbon removal credits, with the deal marking the lowest-ever price on record for DAC-based removal, at $100 per ton. DAC technology, listed by the IEA as a key carbon removal option in the transition to a net-zero energy system, extracts CO2 directly from the atmosphere for use as a raw material or permanently removed when combined with storage. According to the Intergovernmental Panel on Climate Change (IPCC), scenarios that limit warming to 1.5°C include carbon dioxide removal methods scaling to billions of tons of removal annually over the coming decades, with DAC positioned to potentially account for a significant portion of the total. https://lnkd.in/dxrrvExG

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"(The) transition to net zero emissions... estimated cost.... Roughly $275 trillion investment in physical assets from 2021 to 2050, or approximately $9.2 trillion annually - cites a new report by King’s College, London. "In 2023, governments earned $74 billion through Emissions Trading Systems (ETS). Then, there are voluntary carbon markets that trade carbon credits, creating economic opportunities and pushing governments and corporations to invest in low carbon infrastructure and technologies" The challenge is huge, but so is the opportunity (over $1.2Tn / yr for banks). A once-in-lifetime chance to invest in sectors with gigantic positive externalities, which dwarf any negative outcomes they can create. https://lnkd.in/eumcQGwM

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Attention all dairy lovers (yep, I see you out there, cheese lovers 🧀 & milk chuggers 🥛): I bet you haven't considered the methane (which is 80x more potent than CO2) that those food choices are pumping into the atmosphere. Methane is responsible for about half of the lifecycle emissions of an average dairy product - all because those dairy cows burp...a lot! Given the adverse impact of methane on climate (with methane emissions causing about a third of the warming we are experiencing today), it is time for the financial sector to focus on encouraging the food and agriculture industry to do more to reduce methane emissions. In the words of my colleagues, there's stuff we can do about it: 1) New solutions are emerging that can have a big effect on livestock methane 2) Measurement is also getting better 3) There is policy support available in many places; and 4) The industry is starting to work together to tackle this issue, such as through the EDF-supported Dairy Methane Action Alliance. So check out our new primer on livestock methane for investors (https://lnkd.in/eA9uhfpC), by Joshua Torres and Andrew Howell, which breaks down the state of play with livestock methane and offers up some key engagement questions investors and other finance providers can raise with food and ag companies to get the conversation started. Also see our blog introducing this work (https://lnkd.in/e4cqw6x3).

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Big week next week, we are often asked by LPs and start-ups alike, what will the impact of the election be on the #energytransition? Despite election uncertainty, the fundamentals driving #climate sector growth remain strong. In our latest piece, Energize Capital Managing Partner John Tough breaks down the #digital solutions behind the climate sector's resilience. What we're seeing: 📈 Private investment in climate tech has surged 71% since the IRA 🏭 Clean manufacturing investments are empowering communities across the country ⚡️ Grid modernization is a shared national priority 🌐 Digital solutions are stepping up to accelerate deployment and improving returns Climate investment has strengthened American manufacturing, provided jobs, and reinforced key infrastructure. Read more about why we believe the climate sector's momentum is here to stay ⬇️ https://lnkd.in/dQRFE_48

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Data from the International Energy Agency (IEA) illustrates the current "readiness" of #ClimateTechs + their potential impact on carbon reduction. As shown, many techs are at an early stage of being able to have a material impact. Concerningly, some tech funds recently returned capital back to investors recently + closed their funds - citing inability to fund capital intensive techs, found in areas like ClimateTech. This in part may be contributing to the $2 trillion shortfall in ClimateTech, that Deloitte estimates. What this may mean for the future? - The migration of LPs to global, super VC funds within ClimateTech, given the large capital pools needed to fund tech development - Greater specialization from smaller funds, energizing more niche elements of the ClimateTech market - but also altering their / LP's risk profile - A greater role to be played by debt financing in funding growth entities at an earlier stage - impacting cashflow dynamics Will be an interesting space to watch moving forward. We at The Proptech Connection are constantly working with all parts of the Proptech ecosystem. From the leading LPs, funds, techs and adopters in market, providing an independent view. Reach out to us today to find out how we can help. #InvestorTrends #Strategy #Global Ivo van Breukelen Stuart Daun Kiki C. Ethan Ward

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To all #climatetech #founders and #funders in NYC and beyond, please join us on June 5th for an evening of #breakthrough #decarbonization #innovation at the ReGen Accelerator #DemoDay! 🎉 Get ready to be inspired by our cohort of #earlystage startups: ​ ▶ aich2 is engineering a novel #hydrogen ecosystem, built around Solid Hydrogen carriers. ​​ ▶ carbogenics produces sustainable #carbon adsorbents from difficult-to-recycle organic waste, including coffee cups and wastewater screenings ​​ ▶ TeamStack.ai is driving better performance by harnessing #AI, data, & the collective intelligence of teams. ​ ▶ Tesleon LLC uses compelling characters and #storytelling to instill compassion for communities and our planet in the next generation. ​ ▶ Tolam Earth is a trusted #marketplace for high-quality, high-impact carbon offsets. Don't miss out! Secure your spot below. Big thank you to Brown Rudnick LLP for hosting this event, our partners at ClimateHaven for their hard work and dedication during the entire program, and to our incredible network of #mentors and #facilitators, each of whom have dedicated time to working with these incredible founders this spring, including Jason Ambrose, Marina Rakhlin, Lauren Zujkowski, Stuart DeCew, Matt Puccini Andy Rooks, Nina Raab, and Bill Stephney. And of course Shai Tamary, Lars Korby and Sarah Cleveland, without whom we would not be able run such a #program. #innovation #sustainability #climateaction #accelerator

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In 2023, the largest segments in the climate tech vertical were low-carbon mobility, industry, grid infrastructure, intermittent renewable energy sources (solar and wind). 50 VC deals for climate tech companies in 2023 exceeded $150 million, and of these, nine exceeded $500 million. Companies that need a lot of capital to execute on a big vision can succeed today. #climatetech #climateVC #climate

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On Thursday of this week, we will be hosting a kickoff call for the OpenEAC Alliance. We envision this group as a way for M&V professionals to contribute to the development of markets for demand-side energy resources. Whether we are talking about heat pumps, energy efficiency, battery dispatch, or daily load shifting, there are a lot of ways that demand-side energy resources can contribute to decarbonization goals. But it's critical that we are transparent in our methodologies so that the market can trust that claims around carbon reductions are backed by credible science. The OpenEAC Alliance will backstop WEATS, the system of record that WattCarbon has built for valuing the non-energy benefits of demand side energy resources, like carbon reductions. Each EAC that gets approved for WEATS will have a link to an open methodology approved by the OpenEAC Alliance. We've started with a list of ten methodologies, but will be looking at expanding those as the need arises. If you'd like to be part of this effort, please consider joining the kickoff call on Thursday. To stay up to date on the work of the OpenEAC Alliance, sign up at www.openeac.org. Register here: https://lnkd.in/gZiMFtJM

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"…if you look over a 10-year horizon, there's no question a shift toward renewables is happening; largely because it makes economic sense, not purely policy reasons." - Matthew Idema, Aurora Solar Despite market and political uncertainty, the Energize Capital NEXT #Climate #Software Summit made one thing clear: the #energytransition is not slowing down, and we have better tools than ever to make it happen. ✍️ Read our latest blog, Today in Climate: Insights from the Energize NEXT Climate Software Summit, here: https://lnkd.in/d_wMwsxw

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#CarbonBlue Climate-tech startup CarbonBlue announced that it has raised $10 million in a seed funding round, with proceeds to be used to scale up and deploy its water-based Carbon Dioxide Removal (CDR) technology. Founded in 2022 in Israel, CarbonBlue provides technology to turn any water-based infrastructure into a CDR facility by removing CO2 from water, enabling it to absorb more from the atmosphere. The company’s solution takes water containing dissolved atmospheric CO2 and pumps it into a reactor which extracts the CO2, mineralizing it into solid limestone. Then, using heat, a second reactor removes CO2 from the limestone. The stream of pure, removed CO2 is then used as an industrial feedstock, or sequestered in geologic formation granting a tradable carbon credit by the ton, while the low-CO2 water is returned to its source, for the removal of CO2 from the environment. https://lnkd.in/gnGthxxP

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⚠️ "How do we accelerate new industrial ClimateTech project development?" ⚠️ This singular question has been the central theme driving my work over the last 18 months. By speaking to ClimateTech founders, venture investors, project financiers, insurers, EPCs, utilities, government agencies and others, it is clear that there are still major challenges in place that prevent bringing these markets together. In my newest blog series, I attempt to shed some light these hindrances and provide some of the learnings from these different stakeholders with the hope that we can move this market together. TLDR - let's build, folks. 🛠️

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Are electric vehicles as green as we think? I recently joined the 'ESG Detectives' podcast to discuss the true environmental impact of EVs, from manufacturing to energy consumption. We also explored the vital role of AI and semiconductors in shaping the future of sustainable transportation. Tune in to discover the surprising realities behind this rapidly evolving industry. What are your thoughts on the environmental impact of EVs? Share in the comments below! #EV #AI #Sustainability #GreenTech #Podcast #Discussion

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How could the Science Based Targets initiative be so wrong (read: #sarcasm and call for calm)?! Why has the "community" reacted with such frustration with SBTi's proposal to permit the use of #carboncredits to enhance the ability to manage #Scope3 #GHGemissions? There are so many benefits that we can expect: > lowering the barrier to addressing Scope 3 emissions > funding for #innovative #carbon projects will rise > #carbonpricing will become more reliable and predictable Thanks to Margaret Morales GreenBiz Group for stimulating this post today. #decarbonization #gigacorn #gigacornhunter #climatechange

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JUST IN - New Study: How Bitcoin Mining reduces Methane Emissions on Landfills "In this study, we reveal it is not only feasible but economically viable & environmentally beneficial to use landfill gas for Bitcoin mining" TL;DR: ♻ "In the span of 240 days, we prevented the release of ~1.3 million SCF of methane into the atmosphere" 🚘 "over the course of 240 days, the project mitigated the equivalent of 6,627 gas-powered passenger cars" 💡 "techniques and insights gained from this project open the door to new opportunities at landfill sites [to turn] wasted energy sources into productive, more sustainable assets" https://lnkd.in/gCNwgZeP

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🌏 Recent data suggests that VC dollars in climate is starting to rebound (Q1 Clean Energy report by PitchBook, Sightline Climate (CTVC) shared that Seed to Series B grew from 2H23 to 1H24, and IRA dollars will likely start translating to actual deployments - Rhodium Group and MIT CEEPR. Other factors at play, as Rob Day shares: 🚀 Exits are a significant hurdle. The "clean energy VC exit activity” chart shows exits falling off a cliff in 1Q24 (PitchBook). IPOs have been hard to come by for startups across ALL sectors, and especially in the sustainability sector with lower chances of the IPO "checkmarks" being ✅ (big + growing revenues, predicable profitability..) 🔷 Business models - Many venture backed startups in clean energy are considered hard-tech, and they are not #projectdeployers, but often technology developers. They are generally not putting steel in the ground, and the buyers for certain industrial innovations tends to be limited. Few focus on deployment, or developer-style business models..and successful exits in climate lean disproportionately to downstream business model innovations, not hard-tech (ie. industrial wastewater, or composting). 🔷 Of course, the election. On the plus side, big infra investors are motivated to put their 2025 capital to work. Hopefully translating to increased acquisitions. #Hardtech #VC #ClimateInvesting #Investing #Startups #IPO

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As we scale climate tech solutions, we need to carefully consider the impact to local communities. Thanks Evan Halper for a great front page article in today's The Washington Post that highlights this issue with a proposed CO2 storage plan in Montana. Injecting and storing CO2 in porous geological formations sounds scary, particularly given the negative side effects of fracking. I think the concerned ranchers in Montana are completely justified. But, we need to solve the climate crisis, and CO2 removal is an important part of the solution. This issue will continue as more and more first-of-a-kind (FOAK) projects break ground and expand. Early, frequent, and transparent community engagement is critical. #climatechange #climatesolutions #climateaction

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