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Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
Creating climate wealth
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Creating climate wealth

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  • Right side: leave to governments to subsidize because will never be cost effectiveLeft side: businesses stand to gain if provided with the information and tools/technology/legislation to do so
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    • 1. 2 McKinsey says $57T of investment by 2030 Source: US EIA
    • 2. 3 IEA says we need $5T more than BAU by 2020 Source: US EIA
    • 3. 4 Electricity Rates have risen faster than inflation Source Electric Power Monthly, DOE/EIA-0226; and Electric Power Annual, DOE/EIA-0348. 5.5 6.5 7.5 8.5 9.5 10.5 11.5 12.5 13.5 14.5 15.5 16.5 2000 2002 2004 2006 2008 2010 2012 Energy(cents/kwh) New England Middle Atlantic Pacific West South Central South Atlantic East North Central East South Central Mountain West North Central Source: US EIA
    • 4. Oil Prices are persistently staying above $100/bbl
    • 5. 6 2009, National Academy of Sciences Study Impact of fossil fuel on healthcare system: $120B per year Coal and Oil: – $60B each in health impacts – 30,100 premature deaths annually – Over 5,000,000 workdays lost Not included: environmental damage from coal mining, pollution of rivers from coal plant smokestacks to keep the air clean.
    • 6. Energy uses more water than agriculture --more water than cities or ourselves. --Energy responsible for 50% of US water withdrawals
    • 7. What we believe Global scarcity in natural resources Transformations have begun resource extraction, use and disposal (or re-use) Investors are over-exposed to the risks with these trends, and under-exposed to the opportunities Solutions to these risks represent “the largest wealth creation opportunity of our lifetime” 8
    • 8. 100 - 100 - 50 0 50 $/tonofCO2 Source: McKinsey & Co Cost Curve (over-simplified by CWR) Focus – The Economic Opportunity Buildings Transportation Manufacturing Low-Carbon Fuels Renewable Energy Carbon Capture & Storage Other Innovations Climate Wealth starts with the >50% of the climate solution that makes great business sense right now… Land Use tons of CO2e Renewable Electricity
    • 9. Climate Wealth Law Due to continuous technology innovation ~50% of the greenhouse gas emissions will always be profitable to eliminate – held up only by lack of effective business model and financial innovation.
    • 10. Current situation: Silos + low capabilities Future situation: Winners create new networks/structures Capital: investors Regulation: policy makers Innovation: technology challengers Market access: incumbents Capital: investors Regulation: policy makers Innovation: challengers Market access: incumbents
    • 11. Solar PV: Why we are winning $100B business in 2013 • Passionate Industry • Activated Local Advocates • Know how to sell small systems – avg size in 2013 in USA is 33kW • Policymakers can smell grid parity 20% of global electricity is now more cost effective with Solar PV Capital: 9% returns Regulation: Diversification; Reliability Innovation: Distributed Solar PV Market: Fast Rising Electricity Costs
    • 12. 40,000 MW additional projects by 2017 - 1,000,000 projects average 50kW each - $100B investment, $1B in commissions - We are short sales and business development
    • 13. Who actually invests in this stuff? We are on track for $5T by 2020 and now we need another $5T into climate wealth solutions to win. Money is not coming from divestment or impact investing, it is coming from mainstream capital
    • 14. Who holds the Money? Everyone is Focused here Leadership has come from here Everyone should be focused here
    • 15. What about Impact Investing? Criteria Range Target Unlevered project* IRR 12%-20% 16% Project duration 3 -15yrs 8 yrs Return multiple 1.5x-3x 2.5x Project size $0.5M-$10M $5M Total deployment per company $1M-$25M $15M Inflation protection none Energy index 1. Make an impact on a pressing problems 2. Generate compelling risk adjusted returns for investors 3. Get people to follow you at $ Billion scale
    • 16. What about Impact Investing? Performance Risk Mitigation 1. Maturity of technology At least 3 yrs of commercial deployment in one location 2. Transaction Costs Preference for products vs. engineering projects 3. Predictability of revenue Our revenue is predictable and not subject to merchant commodity risk without a credit backstop 4. Vendor viability Vendor can be replaced on both parts or maintenance 5. Vendor geography Focus on US and to a lesser degree EUCollection Risk Mitigation 6. End customer viability Aligned with investment period and return profile 7. Vendor credibility Reference checks and due diligence 8. Measurability of value Sensors, online access, clear reference case 9. End customer geography Price it in or hedge it out 10. Recovery in case of failure Portfolio risk, sometimes transferable product with ability to redeploy
    • 17. ’ “ ” Practicing what I Preach
    • 18. Renewable Energy vs. Efficiency Can Efficiency Deliver?
    • 19. Same in Transportation Can Efficiency Deliver?
    • 20. Opportunity in Georgia $410B economy (#29 in the world) 22 Distributed Generation Energy Efficiency Waste to Value $50B investment opportunity from 2010-2020 - 1,000,000 projects average $50,000 each - $500 million in commissions available to share - We have technologies, short on business development

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