Sightline Climate (CTVC)’s Post

Good analysis of how the U.S. Department of Energy (DOE) invests in #cleantech. I was particularly interested in their focus on demonstration and deployment (D&D). I wonder whether all their bets are paying off, given the recent difficulties facing planned investments in the #batteries #supplychain.

With the passage of Bipartisan Infrastructure Law and Inflation Reduction Act, the U.S. Department of Energy (DOE) has become one of the largest climate tech investors in the world. I joined the Department to help deploy that money into the battery supply chain in a way that results in profitable, defensible, long-term operations and a robust supply chain. Check out this article to understand what diligence processes are like across the Department, including at DOE Manufacturing & Energy Supply Chains Office (MESC). #government #funding #grants #diligence #batteries #supplychain

As the new administration prepares to take office, Bloomberg’s Michelle Ma and Coco Liu share how investors in climate tech and infrastructure are ready to dust off their playbooks and roll up their sleeves to fill the void in the absence of federal support. Despite the policy shifts ahead of us, Clean Energy Ventures Managing Partner David Miller still sees opportunity in the industry, noting that VCs inherently have a stronger resiliency to uncertainty. On the infrastructure side, Greenbacker Development Opportunities Fund Managing Director Benjamin Baker believes the biggest challenge is the amount of red tape involved in deploying sustainable infrastructure projects, pointing to the need for widespread permitting reform. Hear how industry leaders are gearing up to buoy the climate tech sector here: https://lnkd.in/gAZw2a2A

As votes come in on this historic Election Day, Fast Company’s Adele Peters shares what she’s hearing from founders and investors looking toward the future of the climate tech industry, including our friends from Clean Energy Ventures and SparkMeter. SparkMeter CEO Daniel Schnitzer anticipates a “wait-and-see period” that could affect utilities’, developers’ and startups’ appetite to take new risks, while CEV Managing Partner David Miller sees venture capital remaining “bullish on investing in climate tech companies regardless of who is in the White House, given the importance of climate tech to the global economy.” More on how climate tech leaders are bracing for what’s to come: https://lnkd.in/etEvCRWV 

An insightful survey from the Infrastructure Investors Network revealed that of 30 Investors surveyed attending the Investor Forum in London in September 2024, 56% of LPs are ready to increase their investments in infrastructure compared to last year. Additionally, 56% of these investors emphasize the importance of Climate, ESG, and Diversity, Equity, and Inclusion (DEI) in their investment decisions. These key findings highlight the growing interest from private investors in sustainable infrastructure—a promising direction for the future. 🌍💼 Check out the full survey for more details below: #SustainableInvestment #ESG #Infrastructure #PrivateInvestors #DEI

Today is the 54th Anniversary of Earth Day. Let’s revisit how clean energy’s historic boost from the Inflation Reduction Act’s nearly $400 billion in climate change investment – the largest of its kind in American history – will propel the sector forward for several decades. Bruce Kahn, Senior Portfolio Manager of the Shelton Sustainable Equity Fund (NEXTX) discusses this topic and much more here: https://lnkd.in/eBkhTPD2 Elena Chavez, Nicolette DiMaggio #EarthDay #Sustainableinvesting

“The real thing holding back deployment of #renewableinfrastructure is we need permitting reform... In theory, it should be the Republicans who are more inclined to reduce red tape and make things easier to permit and easier to get done." This not a headline I thought I would see - but the article makes some solid and realistic points that are not doom and gloom for #cleanenergy. It is true that there was more #wind installed during Trump's first term during Biden's term, and that there were more coal closures under Trump than Obama. And it makes a good point that the pitch to investors is no longer about sustainability, but about domestic manufacturing and jobs. https://lnkd.in/ge_Y-kwW

Rethinking Valuation in Water Infrastructure Water infrastructure investors face a complex web of risks, including flawed valuation models and climate-related challenges. These factors, however, present a compelling investment opportunity. Yet, recent events, such as the Thames Water case, highlight the dangers of overlooking these intricacies, often due to reliance on outdated models like the Capital Asset Pricing Model (CAPM). Valuation complexities arise from climate instability, identifiable risks, policymaker needs, and the interplay of public and private finance. These factors introduce uncertainty, necessitating a strategic approach to long-term risks and adaptability. Climate change also adds a new layer of risk, intertwining with financial aspects of water infrastructure investment - an urgent need for analytical tools and data for effective assessment and performance tracking. As noted in our most recent report, there's a disconnect between global decarbonization goals and current investment frameworks for assessing physical risk. The lag between emissions and their tangible climate impacts creates a blind spot. What we need are "descriptive models" rooted in present-day data and trends, providing a clear view of our current trajectory measured against ideal projections, not vice versa. To achieve accurate asset valuations and sustainable outcomes, we must move beyond outdated models like CAPM. Embracing sophisticated, descriptive models that reflect current and future realities, incorporating climate/policy risks, and integrating public and private benefits is imperative. This approach will inform decision-making and ensure the most beneficial investments for investors and society. Download our Water Infrastructure report here. https://lnkd.in/e9XXjaHQ

🌆 As we get closer to #NYCW, I'm reflecting on last year's discussions about the crucial role investors across the capital stack could play in channeling funds towards First-of-a-Kind (FOAK) projects. While investor sentiment was generally optimistic, it was evident that a different mode of collaboration within the ecosystem was necessary. Key calls to action I heard in the run-up to NYCW last year were: 💡 "Scale-ups and VCs need to adopt a longer-term perspective on commercial build-out, rather than focusing solely on near-term capital raises." – Emerging Infrastructure Investor 🏢 "Corporates must go beyond financing critical mid-growth stages by also offering project development expertise and opportunities for offtakes." – Infrastructure Investor 📈 "We need 10x more skilled asset managers capable of deploying capital in emerging infrastructure." – Asset Management Executive 💰 "Our impact capital should be deployed catalytically to unlock public and private funding. It should be concessional and targeted towards areas with the greatest need, filling funding gaps while delivering substantial climate and community benefits." – Family Office Executive 🛠️ "EPCs have the most critical and challenging role: executing projects. They can de-risk projects through mechanisms like wrapped contracts and deferred payment structures." – Growth Equity Investor 🏦 "Banks should support climate technology projects more systematically, from advisory to financing, and be open to innovative approaches to scaling these projects effectively." – Emerging Infrastructure Investor 🤝 "We need to embrace an ecosystem collaboration mindset, with capital providers working together to scale single solutions, rather than competing against each other." – Senior Executive, Institutional Investor One year later, do these sentiments still resonate? What are your current thoughts? What's the conversation we should be having at this NYCW to channel greater dollars into climate? I invite your comments below. 📚 ... and if you haven’t yet read our joint publication with Elemental Excelerator on this topic, you can find it here: https://lnkd.in/gDE8SHfc.

For climate-related startups and small businesses! The Biden-⁠Harris administration takes action to expand access to capital for small- and medium-sized climate businesses. They've just released a new Climate Capital Guidebook to provide a simple, comprehensive map of capital programs across the federal government that are available to climate-related start-ups, small- and medium-sized businesses, and their investors. https://lnkd.in/g9Fwm64u