The world is changing! Over the last several years, Environmental, Social and Governance (ESG) criteria have been an emerging focus in the investing world, primarily driven by equity investors where it can be harder for a company raising funds to correlate capital costs with ESG impact. Last month, multinational food-products giant Danone Group and its bank group, led by BNP Paribas, redefined the ESG landscape with a credit facility that is said to directly link borrowing rates to “verified positive impact on the word.”
In this four-part series, we revisit 2017’s biggest developments in Energy & Sustainability-related news, milestones, policy changes, and financial transactions. This is the first installment of the series. Continue Reading Energy & Sustainability 2017 Year in Review: Tax Bill (Part 1 of 4)
The global economy must triple its annual investment in low-emissions technology, from $750 billion per year between 2010 and 2015 to $2.3 trillion per year going forward until 2040, to keep the planet under 2 degrees Celsius warmer compared to pre-industrial levels according to analysis from the Precourt Institute for Energy at Stanford University. The report, Derisking Decarbonization: Making Green Energy Investments Blue Chip, served as the framing paper for the Clean Energy Finance Forum that the Precourt Institute hosted on November 1st.
On August 23, the Baker-Polito Administration awarded $455,000 in grants to seven early-stage researchers and companies developing clean energy technologies as part of the Massachusetts Clean Energy Center’s (MassCEC) Catalyst program.
This year is proving to be the year of investing in innovative energy technology. Mercom Capital Group reports that in the first half of 2017, over $1 billion in venture capital and private equity funding has been invested in battery storage, smart grid and energy efficiency companies worldwide, exceeding the first-half funding benchmarks in 2014, 2015, and 2016.
Mercom Capital Group, a global clean energy communications and consulting firm, surveyed the combined venture capital funding (including private equity and corporate venture capital) and mergers & acquisitions across 89 companies in three separate sectors – Battery Storage, Smart Grid, and Energy Efficiency. Total investments in these areas amounted to $1.03 billion across the first half of 2017, a marked 25% jump from $807 million in the first half of 2016.
This month’s Washington Update offers an extensive overview of the major legislation that has recently been introduced on Capitol Hill, as well as the big takeaways from this month’s congressional hearings related to energy policy. We also examine the ramifications of President Trump’s decision to withdraw the United States from the Paris Agreement, and highlight the Department of Energy’s latest funding announcements for three research and development projects.
On June 2nd, the New York State Energy Research and Development Authority (NYSERDA) and the New York Power Authority (NYPA) issued record requests for proposals from qualified developers to build renewable energy projects that will generate 2.5 million megawatt-hours (MWh) of electricity a year. The two requests combined total the largest renewable RFP issued in any state. Alliance for Clean Energy New York estimates that the solicitation “will drive between 600 and 1,600 megawatts of new capacity depending on the mix of technologies ultimately developed.”
Seed financing is critical to entrepreneurs and emerging growth stage companies looking to jumpstart their business, yet the initial investment a business needs can often be the hardest to find. Particularly for clean energy companies building new, industry-disrupting technologies, bringing in early financing can enable start-ups to develop and test their products and designs. On Thursday, February 16, our own Kristin Gerber, an attorney in Mintz Levin’s Corporate & Securities Practice, will host an event in Cambridge, MA entitled “Overview of Seed Stage Financing Structures.” Kristin will address many questions surrounding seed financing, including how entrepreneurs can exact the most mileage out of this category of finding and how this financing can be structured.
The Obama Administration recently announced new financing for renewable energy projects through several initiatives domestically and around the globe. From committing $125 million in Overseas Private Investment Corporation (OPIC) financing for renewable energy projects in El Salvador and India to announcing seven Innovation Challenges with a goal of reducing carbon emissions, the Administration hopes to continue the global transition to zero-and-low carbon energy sources. To learn more about these new initiatives, read on!
Passage of a tax package is another possible item on Congress’ list for the lame duck session, which is discussed in a recent ML Strategies alert. Three dozen tax provisions are scheduled to expire December 31, about half of which pertain to energy provisions. Congress approved last December a $1.1 trillion omnibus appropriations and $680 billion tax extenders package and adjourned for the first session of the 114th Congress. To learn more about the tax extenders package, read on!