Part of Energy & Sustainability Network »

The Energy Collective Group

This group brings together the best thinkers on energy and climate. Join us for smart, insightful posts and conversations about where the energy industry is and where it is going.

Post

'Green infrastructure' pulls big VC dollars into climate tech

image credit: Canva.com
Joe Luong's picture
Joe Luong 12,035
Managing Director, Neo Energy Storage Limited

Joe HQ Luong is a seasoned CEO and Founder with over 18 years of experience in multiple sectors.  Currently, Joe serves as the Managing Director of Neo Energy Storage Ltd, a Private Equity...

  • Member since 2023
  • 23 items added with 5,939 views
  • Sep 20, 2023
  • 440 views

"From green cement to waterproof wood, VC-backed companies in the built environment—anything along the lifecycle of residential and commercial buildings—are the buzziest thing in climate tech right now.

In the first half of 2023, #climatetech companies working in the built environment closed more than $1.8 billion in VC deals, making it the strongest half that the segment has seen and on pace this year to nearly double funding raised in 2021, according to PitchBook data."

Technology and innovation is the panacea that is driving us to net zero and energy security.  It is clear, even in these difficult times for startups, innovation in ClimateTech is still being backed by investors. We're only in the infancy stage. Would be interested to see the breakdown of this... geographical location, sector/industry, funding round etc....

Can't wait to see how this space develops

This blog was taken from an article on LinkedIn 

#climatetech #investment #VentureCapital

Discussions
Matt Chester's picture
Matt Chester on Sep 20, 2023

The VC behind green tech shows once again that this isn't purely a play for the environment, but that there is real profit to be had in moving in this direction

Mark Silverstone's picture
Mark Silverstone on Sep 20, 2023

«Can't wait to see how this space develops»

Nor can I.  A major question needs to be answered: Will the IRA and other government programs turn out to be giant and never ending subsidies for the renewables industries or temporary «seed» money that is soon to be replaced by VC for financing decarbonization? A lot depends on how actual costs develop, not least for offshore, especially floating, wind.  
 

Given our present political climate, it seems highly unlikely, nor desirable, that the renewables lobbies will be able to extract long term (e.g.  greater than 10 years) government subsidies for R & D, much less actual implementation, in any way similar to that on which the fossil fuel and nuclear industries, as well as biofuel and agriculture industries, are dependent. 

It was something of an under appreciated  miracle that could yet be undone, that the IRA and infrastructure legislations were enacted.

Joe Luong's picture
Joe Luong on Sep 20, 2023

You're absolutely right, government subsidies can never be a replacement for market forces.  However, government policies can help set the foundation to allow capital to grow.  One example is that in the UK, prior to this year, pension funds were not permitted to invest in startups. By reducing red tape, billions of pounds/euros/dollars are now available to invest in future technology (including climatetech).  Another example which you highlight is the IRA (which I covered this in my other post recently). The new regulations reclassifiy depreciation as a transferrable asset.  Even if the Investment Tax Credit (which is also transferable) is eliminated by the next government, we have created a new asset class and allowed capital to flow into an industry which is desperate need of investment. The target of the IRA was to unleash $1tn in private sector investment from an $369bn investment and I think they have 8 years to achieve that.  Definitely an interesting space! 

 

 

 

Mark Silverstone's picture
Mark Silverstone on Sep 21, 2023

Thanks for helping to clarify the IRA. I would be grateful if you would continue to track these issues for Energy Central readers.

Joe Luong's picture
Thank Joe for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member

Get Published - Build a Following

The Energy Central Power Industry Network® is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »

Energy Central Jobs
Featured Jobs
More Jobs