Peter Liu

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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At a time of such political uncertainty, an urgent reminder that climate-tech is a matter of national security and industrial development strategy. Without any reference to carbon or climate-change, the energy transition is a race the US and the west cannot afford to lose. Technology transitions fuel the economic and military power that shape geopolitics and the rise and fall of empires. Think: Caravel ship design and new navigation tools that underpinned Portuguese conquests of Africa and the Americas. The 1st industrial revolution fueling the rail roads, manufacturing that built the British empire. Then the US-lead second industrial revolution with oil, cars, and the economic boom associated with these. Ascendent after WWI, the US eclipsed Britain and Europe as in WWII on the back of its economic might and technology leadership. But the best analogy for the critical strategic, economic and technological importance of winning the clean energy race is microprocessor chips. In the 1950s through 70s, America’s ingenuity and capital markets seeded these technologies that changed everything, not just computers, the internet communications, but smart bombs, intelligence, satellites in the midst of the cold war. Japan and Korea’s economic miracles were tied directly to economic development policies focusing on these industries. And today, China’s claims on Taiwan are more about controlling TSMC’s chip manufacturing technology than national identity. Lets be clear. Clean energy technology is the next wave of technology that will shape this century and those that win this tech will control the economic and geopolitical order of the future. China saw this 20 years ago and has invested billions to ensure it wins the race. Today, China controls ~75% of global battery manufacturing capacity, 80 % of solar panel capacity, 58% of EVs manufactured, and 60% of the critical minerals that feed these industries. Beyond economic power, climate-technologies will also decide the future of hot and cold conflict. Think: grid resilient military bases powered by distributed energy at a time of cyber attacks on the grid.  Electric tactical vehicles with no noise signature. Battlefield batteries replacing highly exposed fuel supply chains. This isn’t speculation, this is straight from the US militaries climate-change strategy. China understands that clean energy is the inevitable future, and he who captures this prize wins the 21st century. They are cheaper, easier to deploy, with exponentially falling costs, and myriad use-case superiorities that make the obsolescence of fossil fuels inevitable. Today, 90% of all new generation capacity being added globally is renewable. We reached peak ICE vehicle in 2017. At a time when climate has become a partisan political issue, lets reframe this topic as the urgent matter of global security it is. The future of clean energy is not open to debate. But who wins this prize and, with it, the next century, is up to us.

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Early stage climate investing impacts of Trump 2.0 through the lens of an LLM observing our teams post election investment committee discussions - 1. IRA Implementation Challenges reflect deep concerns about program execution rather than just policy changes. The team noted that even without formal rollbacks, administrative cuts or friction could effectively neutralize IRA benefits. They discussed how bureaucratic slowdown and uncertainty around decision-making could make programs practically inaccessible even while technically remaining in place. This led them to pass on at least one investment opportunity that was heavily dependent on smooth IRA implementation, demonstrating how these concerns are actively shaping investment decisions. 2. The Municipal/State Level discussion focused on the potential for local action to provide some stability amid federal uncertainty. The team explored how in the past some cities and states led on climate initiatives and could continue pushing climate initiatives forward regardless of federal stance. This created an interesting tension between seeing local government as a source of stability while recognizing its resource limitations. 3. Market Psychology emerged as a crucial factor in their analysis. The team explored how regulatory uncertainty affects behavior throughout the market - from individual bureaucrats becoming more risk-averse in approvals to customers hesitating on purchasing decisions. They highlighted how market participants' fear of potential changes can freeze activity even before any actual policy shifts occur. This psychological impact appears to act as a force multiplier for regulatory uncertainty, potentially affecting markets faster and more severely than formal policy changes. 4. Unsubsidized Business Models. The team is continuing to focus on finding companies that can succeed primarily on economics rather than regulatory support. They discussed adjusting valuations to account for increased regulatory risk and showed particular interest in business models that could maintain growth even in adverse political environments.

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📢 Some big news this week that marks another pivotal step in the evolution of carbon markets… The Biden administration, led by Treasury Secretary Janet Yellen, will be unveiling the first broad US government guidelines on the use of carbon credits as part of decarbonization strategies. It’s a much needed step that will promote high-integrity carbon markets, and boost corporate confidence in using carbon credits. The Bloomberg article's sources suggest the upcoming framework will align with the government’s stance that: “voluntary carbon markets have a role in reaching net zero, as long as they promote high-integrity emissions reductions and channel meaningful amounts of capital into nature-based projects today as well as carbon-removal technologies in the future.” And that is the key. There is no silver bullet for the climate crisis. Whatever the critics may say about carbon credits, more transparency, clarity and official endorsement on their use will serve to unlock billions of much needed corporate dollars for carbon projects. Couple this news with recent initiatives by major tech companies like the Symbiosis Coalition of Google, Meta, Microsoft and Salesforce and we’re starting to stride in the right direction. Read more and sign up for the live stream: https://lnkd.in/ddDRA8yd #carbonmarkets #carboncredits #naturalcapital #climateaction #breakingnews

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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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#unavoidableopportunity #climateresilience investment now. "Separately, the Department of Energy is trying to help utilities squeeze more capacity out of the existing grid. That includes “grid-enhancing technologies” such as sensors that allow energy companies to send more power through existing lines without overloading them and advanced controls that allow operators to ease congestion on the grid. It also includes replacing existing lines with advanced conductors, which can potentially double capacity along existing routes. The Energy Department is currently offering $3.9 billion in funding that could go toward these and other solutions."

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I love stories like Samuel's about how he switched on to the need for the transition and found his pathway to having impact. Each of us has to find their own light switch and their own pathway. Prof Smil is such a troubling figure. Brilliant, charming, persuasive - yet he has used his skills to discourage us from working on what we all understand is a vast and daunting problem. All light switch, no pathway. For decades he propagated the Primary Energy Fallacy - the idea that renewable energy had to replace all "Primary Energy Demand", even though that is not a measure of demand at all: 2/3 of it is lost en route, mainly waste heat from burning coal, oil and gas. We need to provide energy services, we do not need to burn things. And he hasn't devoted 1% of his brilliance to explaining what we *should* do, rather than what we *shouldn't* do. OK, we get it, it's hard to change big systems fast. So where's the Smil plan? Even if we can't stop climate change dead in its tracks, we have to do the best we can. Every 0.1C matters. My light switch was seeing the damage being done to my beloved high mountain environments - glaciers disappearing, historic climbing routes becoming unusable because of rockfall as the permafrost melts. And my pathway was to help people understand in practice solutions - and not just renewables - that *could*, at least in theory, scale fast enough to make a difference. We now have enough manufacturing capacity to replace 5% of global electricity with solar every year. Soon to be 10%. If you put one grain of rice on the first square of the chess board, and two grains on the second square, you may not yet have enough to feed a Prof Smil, but we all know what happens next. So buckle up, listen to the Cleaning Up Podcast episode with Jenny, and even if you think you can't do much, you can. You could help someone else, early in their career, find their light switch and their pathway! And make sure you tell people your own light switch and pathway story. Narratives matter. https://lnkd.in/gTVyu4-3

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The Intersectional Opportunity of Solar: Addressing Climate and Inequality -- by Jonathan Abe and Martha Buckley, Sunwealth  The US EIA forecasts a 75% increase in solar generation from 2023 to 2025. As the solar industry races to address climate change and meet the demands from electrification and data centers, there lies opportunities to also address socioeconomic inequalities across the nation. So, we ask: Who is benefiting from the growth of the solar economy? What other community needs could this opportunity meet? Direct link- https://lnkd.in/gGfR9Cvu

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Participating in Active Membranes seed round may be one of the most impactful investments Echo River Capital will ever do. The potential to provide more fresh drinking water, to more people, in more places, has never been more crucial. Thanks Arian Edalat and Eric M.V. Hoek, Ph.D. for pursuing this innovation.

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"Simply put, there is too much capital seeking too few opportunities, particularly at the seed stage. Multi-stage firms have eliminated pricing discipline at seed stage and the proliferation of seed firms has made the task of investing at this stage as competitive as it’s ever been, leading me to believe that indexed seed investing in today’s environment will produce poor returns. What does this mean for today’s environment? It’s never been more important to break away from median performance. While there is risk in breaking away from the pack, the risk (at least performance wise) of staying part of the herd is simply far worse. Median returns for the recent vintages are simply terrible. One could argue that funds are still in their j-curve phases, but I suspect this doesn’t explain the divergence we’re seeing between GOOD performers and GREAT performers. More than ever before, it’s clear to me that playing the same game as everyone else will not work, so fund managers should question whether they are really capable of being in the top 5% of whatever strategy they are employing. From a LP perspective, allocators should likely ask the same of their managers and consider whether allocating to indexed mega funds or indexing across too broad of a portfolio of managers is tenable in achieving their return targets." https://lnkd.in/g8GqHY-P

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With daily headlines highlighting the accelerated pace of the energy transition, it is clear that we are in a new moment with shifting competitive dynamics and market realities. Here, Lisa Hansmann and I take stock of where we are in the transition, what has changed, and where we are going. And, we assess the implications of these changes on innovation and entrepreneurial communities, with a focus on the key challenges and their solutions that lie ahead in our path to energy abundance with the potential to decarbonize our economy, ensure energy and economic security and build prosperity. https://lnkd.in/e_Pp-7Ty  

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It is an exciting day for climate action. Sustainability Roundtable, Inc.’s Net Zero Consortium for Buyers (NZCB) just announced today that seven world-leading companies have signed an aggregated virtual power purchase agreement (VPPA) with Southern Company for renewable energy credits produced by the 180 MW Phase II portion of the Millers Branch Solar Facility in Haskell County, Texas. This long-term aggregated procurement enables the financing and development of the new 180 MW project owned by SPC. The project is expected to achieve commercial operation in Q2 of 2026 Cisco, Juniper Networks, Bio-Rad Laboratories, Cadence Design Systems, IDEXX, PTC, and a Fortune 100 healthcare company joined this agreement, which democratizes access to the commercial and environmental benefits of utility-scale renewable energy by making procurement accessible to a broader range of enterprises. This aggregation is one of the largest peer-buyer organized aggregations to date globally. Today's announcement reflects the fact that the NZCB has achieved 86% of its goal of causing a gigawatt of new renewable energy capacity before 2025. Reaching NZCB’s gigawatt goal would generate enough energy to meet the annual average electricity needs of more than 200,000 U.S. homes while helping mitigate commercial Scope 2 emissions across the business operations of corporate buyers. This transaction demonstrates how the NZCB offers a breakthrough model for commercial collaboration in causing utility-scale renewables, beginning in North America and Europe. 

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Last week, I published my thoughts on the need for clean energy in the MAGA movement in The National Interest. While many clean energy activists tend to focus on climate change as the main reason to prioritize clean energy, I contend that there are a number of important reasons that Trump 2.0 should prioritize clean energy as a core part of its energy agenda. In the opinion editorial, I outline four important reasons why preserving most of the clean energy tax incentives in the IRA are important to that energy agenda, including the fact that the United States needs substantially more electric generation capacity to meet the swelling demands of a growing economy. Adopting an “all of the above” energy policy will help the United States meet this demand. Read more: https://lnkd.in/eQ8TF7CS

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REDD up by 27% YOY, for 1Q2024. If you read about Carbon crisis, prices crashing, double check the source. Likely the author has an agenda that opposes Voluntary Carbon Markets(VCM) and/or anything that smells of capitalism.

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For anyone who will be at IEEE Power & Energy Society T&D Conference feel free to stop by our panel session on #EVs and #gridreliability. Will be an interesting cross-sector discussion including technology provider, independent system operator, and utility perspectives among others. E-mobility is driving the blending of Transmission and Distribution system planning, design, and operations. Particularly with the growing prevalence of distributed energy resources, IoT and grid-edge technologies, and virtual power plants (#VPPs).

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As we enter the fourth day of power outages in Texas combined with sweltering heat, the impact of hurricane Beryl illustrates both the impacts of climate change and the critical need to accelerate deployment of climate-tech solutions for a more resilient grid. Hurricane Beryl is yet another warning that climate change is upon us and accelerating. Warmer sea temperatures are driving more brutal and destructive hurricane seasons, with more powerful storms starting earlier in the year and occurring more frequently. While rising global temperatures ensure more frequent and deadly heatwaves - for over a year, every single month has been the hottest in recorded history, making extreme heat the new normal. From India to the middle east to the US, thousands have already died this year due to extreme heat. The combination of increasingly frequent and violent weather events, extreme heat and an antiquated, fragile grid are starkly illustrated by the 1.3 million homes in Texas still without power in the peak of summer heat. But it doesn't have to be this way. Climate-tech solutions, in particular distributed energy resources like solar and storage, are cheap, mature, and infinitely deployable technologies that can massively increase grid resilience and mitigate the compounding risks of heat and power outages during extreme weather events. In a world where roof-top solar and in-home battery storage compete on even playing field with centralized generation and distribution the grid is more resilient and power outages, when they inevitably occur, less deadly. DERs increase grid resilience by shifting generation, storage and distribution to the ultimate load (your home or local area). This takes pressure off the grid by reducing the need for antiquated, energetically inefficient T&D infrastructure that otherwise needed to link generation assets to load, through miles of expensive powerlines, transformers, etc., all susceptible to downed lines and overload. DERs also allow for demand response, load shifting, efficiency-as-a-service and other grid services that can stabilize the grid when power demand and generation capacity are dangerously unmatched. Simultaneously, DERs and microgrids mitigate the worst risks of inevitable grid failures. In home battery storage can keep your fridge running at a time when food and perishable items can't be reached. Rooftop solar can keep your air-conditioning running at the hottest parts of the day, and your cell phone charged, even if it takes days for your local utility to restore power. And these same assets can keep critical communication infrastructure up when emergency services need them most. And that's before even considering the fact that these technologies are already cheaper than conventional energy systems, faster and easier to deploy, and essential in reducing the carbon emissions driving this crisis in the first place. https://lnkd.in/g8bebhA8

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Who doesn't love a good top 50 list?! Very excited to launch Congruent Ventures and SVB's inaugural 50 by 2050, focused on identifying the companies with the highest potential to drive carbon reduction over the next 25 years. I'm 100% certain that we've missed some amazing companies. I'm also 100% certain the companies on the list are awesome. Sadly, by our own methodology many or our incredible companies at Congruent didn't make the list (but suppose that is as it should be). Check out the report below. Live / interactive list here: https://lnkd.in/dYgCfEv8 Tim De Chant TechCrunch coverage here: https://lnkd.in/dkUJm_Sn The Congruent/SVB team collaboration was awesome Dan Baldi Eliza Cushman Marianne Wu Joshua Posamentier!

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