Growing the Impact Economy : Applied Clean Energy

June 22-23, 2015

Timothy B. JonesPresidential Innovation Fellow @DOE

Overview

❖ Reducing the impacts of Climate Change will require not only changes in consumption but use of new sources of energy

❖ After a bubble in 2004-2012, we’ve seen an 80% reduction in venture capital investment in clean energy

❖ As a result, new innovations are seeking impact investment capital in order to come to market

Clean Energy Investment Initiative

❖ The Obama administration has recognized this funding problem and Vice President Biden announced the Clean Energy Investment Initiative (CEII) at the White House on June 16

❖ Impact Investors pledged over $4B of capital to clean energy

CEII Details❖ CEII is comprised of two parts:

❖ Impact Investor commitments of $4B+ to invest capital in clean energy solutions

❖ Establishment of a Clean Energy Impact Investment Center (CEIIC) at the Department of Energy to

❖ Provide technical and financial resources to impact investors and their intermediaries

❖ Provide access to US Government labs/experts where required for diligence/prototyping uses

Applied Clean Energy- Open Q’s

❖ Which are the clean energy investment areas/vehicles of greatest interest to for-benefit, impact investors?

❖ What additional diligence or practices need to be applied to clean energy investments to achieve both financial and climate goal impacts?

❖ How to balance early stage transformative “science” investments with later stage, “deployment” investments?

Applied Clean Energy - Solutions

❖ Intermediaries and alliances of impact investors are critical to achieving investment and diligence scale

❖ “WE”>”ME”

❖ Identify emerging managers with an ESG ethos

❖ 4th sector players beyond Business, Govt., Philanthropy

❖ Adjust time horizons

❖ True “Evergreen” investing