Solar Roadways: Science Fiction Becoming Reality

Solar roads are entering a new test phase that will see them installed along a portion of the iconic route 66. Solar Roadways is the brainchild of Scott and Julie Brusaw of Idaho.  It all started ten years ago when Scott, an electrical engineer and his wife Julie began to imagine how solar panels could be embedded into the road. The concept eventually incorporated LEDs that could illuminate highways, and replace road lines. These solar panels can also be heated enabling them to melt snow and ice. The panels used in olar roadways are made out of recycled glass and in addition to collecting renewable energy, the panels can even redistribute storm water.

When it was first introduced the idea of embedding smart solar panels in our roadways seemed more fiction than science. It nonetheless captured people's imagination and a video called "Solar Freakin Roadways" went viral garnering over 21 million views.

Solar Roadways crowd-funding efforts raised $2.2 million to help accelerate the leap into commercial production. The project has also secured some high profile recognition when it won first prize in two of GE's Ecomagination challenges.

The US Federal Highway Administration funded the first working prototype. Solar roadways has received three funding contracts from the US Department of Transportation.

The concept has already been tested in an operational parking lot setup. By the end of this year Missouri’s Department of Transportation is expected to test the project at a rest stop. In April, the Idaho Department of Commerce committed $50,000 for a Solar Roadways demonstration project and crowdfunding campaign.

This technology may seem fantastic but it is an extension of existent technological innovations. Solar carports are a good example and they are popping up everywhere including in the US. There is a solar carport system at a Whole Foods Market in Brooklyn, New York. Recently completed solar carports in the US include one at Toyota's facility in West Caldwell, New Jersey and another at the Buck Institute in California.

Europe is also experimenting with solar roads and electrified highways. In the Netherlands SolaRoad has been operational since November 2014 and the French government wants to build 600 miles of solar roads over the next five years. Sweden has already built the world's first electric highway for heavy transport. Electric trucks can now get power along a 13 mile stretch of road between Norway and Sweden thanks to overhead power line technology developed by Siemens.

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Green Banks Leverage Private Investments for Climate Finance

In addition to creating new jobs and improving the environment Green Banks are essential to ramping-up clean energy finance. Such banks are capable of helping to unleash the vast potential of climate focused investing. Green Banks reduce the cost of clean energy and efficiency. They are helping to change market thinking by taking a holistic, long-term view of industry support.

A Green Bank is a government-created institution that facilitates private sector financing for clean technology projects. Different Green Banks have different programs, however, they all leverage public funds to attract private investment.

In addition to providing capital and information these banks encourage private sector investments by helping to mitigate risk. They also help to standardize financial products to make them easier to buy and sell.

The tools used by Green Banks include low-interest or longer-term loans, interest rate buydowns, project equity stakes, small grants, and, as the market develops, credit enhancements.

In the US there are a number of Green Banks including the New York City Energy Efficiency Corporation, the Connecticut Green Bank, the Hawaii GEMS Program and the New Jersey Energy Resiliency Bank.

Internationally Green Banks include the UK Green Investment Bank, the Japanese Green Finance Organization, the Australian Clean Energy Finance Corporation, GreenTech Malaysia.

For years we have watched Green Banks contribute to meaningful climate progress by supporting things like renewables and energy efficiency initiatives.

The potential of green investment banking is huge, however governments can contribute to or detract from this laudable initiative.

As reported by the Independent exactly one year ago, the government in the UK announced plans to sell off part of the first bank in the world established to make money out of environmentally sustainable projects.

Launched by the government in 2012, the UK's Green Investment Bank will be privatized in a move that is expected to generate £1 billion. However, Chuka Umunna, the shadow business secretary, said the bank would be destroyed by privatisation. “It is unclear how the GIB can continue to perform its unique and vital function if it is sold off and it would be incredibly short-sighted if the important role it currently plays was lost,” he said.

In 2014 the Green Investment Bank backed 22 new energy projects worth £2.5 billion and generating enough energy to power 4.2 million UK homes.

As reported by Business Green in 2014, an investment Bank boss said that the UK's Green Investment Bank could mobilize £60 billion if government allows it.

Banks are an important part of creating the necessary infrastructure to support the transition to a low carbon economy. One high profile example is EV charging stations. While electric vehicles are an important part of the transition, green banks can support charging infrastructure which is essential to the widespread adoption of EVs.

As reported by Energy Manager Today, a study by the Center for Climate and Energy Solutions (C2ES) indicates that banks play a key role in the transition to a low carbon economy. This includes both expanding EV infrastructure and clean energy.

As reported by Sustainable Business, the first "Green Bank Academy" was attended by leaders from over 11 states including California, Hawaii, Illinois, Kentucky, Maryland, Massachusetts, Minnesota, New Hampshire, Washington, NY and Connecticut.

Green Banks can help fill the financing gap in the absence of government leadership. Mark Muro from the Brookings Institution, co-host of the Academy explained that Green Banks contribute to, "large-scale progress on big problems when the national government has gone absent."

In 2014 US Green Banks committed to spending $15 billion on energy Projects over 5 years. This investment could be leveraged to over US $40 billion in private investments. Here is a brief review derived from an EDF article on the major Green Banks in the US.

Connecticut's Green Bank

In 2012, Connecticut created the first green bank, known as Clean Energy Finance and Investment Authority or CEFIA. As reported by the EDF, CEFIA’s 2013 annual report indicates that for every dollar of ratepayer funds CEFIA invested, roughly $10 was invested by private sources. Much of this investment was focused on clean energy building upgrades that are part of Connecticut’s Property Assessed Clean Energy program. CEFIA also has an innovative financing solution for solar projects on commercial properties. In 2014 Connecticut's Green Bank (CEFIA), financed 1,160 projects and attracted over $180 million in private capital based on $41 million in state funds, resulting in 26.7 megawatts of new clean energy.

New York’s Green Bank

New York has the largest green bank in the US, with $1 billion in funding. Launched in 2013, New York’s Green Bank focuses on advancing the clean energy market by encouraging business partnerships.

Hawaii's Green Bank

Hawaii's Green Bank called GEMS launched in 2014 with a $150-million green bank called GEMS, that focuses on social justice. The program allows homeowners to finance solar projects that significantly reduce their power costs.

California's Green Bank

In 2014 California introduced a Senate bill that laid the groundwork for attracting private capital for a green bank that launched in 2015.

New Jersey's Green Bank

In 2014, Governor Chris Christie announced plans to launch an Energy Resilience Bank. Though technically not a green bank, the Energy Resilience Bank has proposed using federal Superstorm Sandy funds to finance the resiliency component of infrastructure projects that strengthen the state’s electricity grid during extreme weather events.

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Green Finance Goes Mainstream in 2016

The world is embracing green finance as never before and all expectations are that this will increase as we move towards a low carbon economy. Financial systems should play an important role in the green economic transition said, Zhou Xiaochuan, the Governor of the People's Bank of China. Zhou was speaking at the Green Finance Symposium which took place on Saturday, April 15th in Washington.
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After years of volatility, green finance is emerging as a central part of our efforts to address climate change and transform our energy infrastructure. Green finance is preoccupied with adapting to the impacts of climate change and/or reducing greenhouse gas emissions. It is the means by which we can stream tremendous amounts of needed capital into emissions free sources of power.

Although a precise definition of green finance (GF) is somewhat elusive, generally speaking it can be understood as sustainable investment and banking, where investment and lending decisions are taken on the basis of environmental considerations. This applies to both the public and the private sector and it specifically entails environmental screening and sustainability focused risk assessment.

For years, GF was dismissed as being too risky. Now in the wake of the signing of the Paris climate accord, lenders cannot ignore the economics of climate action that make clean energy an attractive opportunity. Governments began seriously investing in clean technologies in 2005. However, the early years were fraught with challenges, not the least of which was the economic crisis of 2007 – 2008. Nonetheless, between 2005 and 2010, there was a 200 percent increase in the growth of GF.

There is well warranted optimism that 2016 will be the year in which green finance comes of age. Governments, businesses and global organizations are all getting on-board to make this a landmark year for GF.

In an article published in the Huffington Post, Nick Robins, the Co-Director of the UNEP Inquiry into a Sustainable Financial System, said:

"From a strategic perspective, 2015 built a new set of policy foundations for the global economy, signaling new directions for the financial system…So, if 2015 designed the foundations, the task for the financial community in 2016 is to take the practical steps to deliver the reallocation in capital that’s required, and doing this in ways that result in an orderly transition in global markets."

At a G7 meeting last summer, the world’s leading economies agreed to phase out fossil fuels. At this meeting, Angela Merkel said the leading industrialized countries were committed to raising $100 billion in annual climate financing by 2020 from public and private sources.

According to a new report, green finance has what it takes to deliver decisive climate action. The report says that GF is capable of keeping temperatures from rising beyond the upper threshold limits of 1.5 to 2 degrees Celsius set in the Paris climate accord. The report was produced by a partnership between Bloomberg New Energy Finance, Ceres and Ken Locklin of Impax Asset Management. The report, titled Mapping the Gap: The Road From Paris, finds that there is enough money in the global economy to finance the transition to clean sources of energy.

We have gleaned valuable insights about the feasibility of GF from a number of pilot projects. A report from the Climate Investment Fund (CIF) shows that green finance works. The report titled, "Learning by Doing: The CIF’s Contribution to Climate Finance," studied GF in 48 countries. CIF oversees more than $8 billion, which it uses to support projects in cleantech, forests, climate resilience and renewable energy.

This year, the Green Climate Fund has come of age and there are now a wide range of initiatives that support the growth of GF, including the SDGs and a rapidly growing green bond market.  The IMF is now focusing on climate change and the World Bank along with the IBD are contributing to the funding of clean energy in the developing world.

The G20 has indicated that it is committed to green finance. Mark Carney, the Governor of the Bank of England and Chairman of the Financial Stability Board, has said that GF has grown up and it is no longer a “niche”. In March, Carney said that in a bid to mainstream climate friendly funds, the G20 will make green finance a "priority". The G20 has explored the concept through its Green Finance Study Group and the subject will receive special attention at September's G20 meeting in Hangzhou.

Many governments are gearing up to get involved with GF and some nations have already implemented policies. As reported by Bloomberg, Indonesia plans to limit the ability of banks to lend money to projects that are deemed environmentally destructive. While this is a move will curb slash and burn agricultural practices in the country, it can be applied to any set of environmental parameters. A May 2015 WWF report stated that there are four major banks in Indonesia, Malaysia and Singapore that have embedded environmental factors as part of their credit-decision process. Last fall, the Association of Banks in Singapore introduced guidelines on responsible financing.

A 2016 UNEP report titled, "The Financial System We Need," declares that the UK is a global hub for GF. London’s financial community is positioning themselves to lead green finance, while Hong Kong and Singapore are already leaders in GF.

As explained by Achim Steiner, Executive Director of the United Nations Environment, "2016 is set to be the year of green finance. Across the world, we are seeing a growing number of countries aligning their financial systems with the sustainability imperative."

Governments, financial institutions, investors and businesses have been pouring capital into clean energy at ever increasing rates. After a protracted period of intense volatility, green finance has finally arrived. It is now an unstoppable global force that is helping to build a clean power infrastructure.

Source: Global Warming is Real

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Green Bonds Emerging as a Major Force in Green Finance

The momentum driving green bonds is growing and they have emerged as a major instrument of green finance. Green bonds generate funding for sustainable development and clean energy technology. They attract debt investment capital and drive innovation in renewable energy, sustainable agriculture, forests and other environmental causes. At COP21 green bonds were touted as being one of the vehicles that could help deliver $100 billion annually by 2020 to support of climate action.

A 2014 HSBC report indicates that we will need to see $300 billion a year in investments to keep us below the upper threshold limit of 2 Celsius. If even a fraction of the $80 trillion bond market moved to environmental finance, it could tip the scales in the climate fight, says Angus McCrone, Chief Editor for Bloomberg New Energy Finance.

According to Ceres, we need to invest around $1 trillion each year in clean energy projects worldwide by 2050 to ensure that global warming is limited to 2 degrees Celsius.

The first green bonds were issued in 2007 by development banks. As of 2012 we were seeing investments of around $2 billion, by 2013 that grew to $11 billion and by 2014 it was around $36 billion. In 2014 three green bond indexes were launched (S&P Green Bond Index; Bank of America; Barclays Bank and index creator MSCI).

In 2015 there was $42 billion worth of green bonds issued. These bonds have grown quickly over the past few years and as reported by the EDF, in 2016 they are forecasted to reach about $50 billion.

Green bonds have become a powerful means for corporations to broadcast their environmental credentials. Apple issued $1.5 billion in bonds earlier this year dedicated to financing clean energy projects at its facilities worldwide. New York Metropolitan Transportation Authority issued $500 million in green bonds and Georgia Power issued $325 million to support investment in renewable energy.

As reported by Sustainable Business, in 2015 the World Bank issued $3.1 billion in green bonds including $600 million in fixed-rate 10-year green bonds. The Oslo Stock Exchange began listing green bonds. SunEdison's yieldco TerraForm Power, issued $800 million for 8-year junk bonds. Other top issuers were European Investment Bank with $5.6 billion in Climate Awareness bonds, German Development Bank KfW with $3.5 billion and GDF Suez with $3.4 billion. Toyota issued $1.75 billion, French Development Bank AfD issued $1.3 billion and Iberdrola issued $1 billion in green bonds. Vestas wind energy also issued green bonds.

"We are convinced that green bonds play an important role in unlocking the green market capital that is necessary to finance the transformation to a cleaner and more sustainable future," states Stefan Reiner, Director in Corporate Finance and responsible for the bond business of German development banks,

Mexico has successfully used green bonds as a financing mechanism to reduce emissions. In 2014 the Huffington Post reported that Africa will issue one billion in green bonds. In March 2015 the first Green Bond issued in Asia easily raised $500 million.

Some early concerns related to green bonds are being addressed including the lack of standardization. In January 2014 a group of leading banks took preliminary steps to create standardization in the market by issuing something called Green Bond Principles. As explained by Ceres’ Mindy Lubber: "As standards get stronger, we’ll see more growth in the market."

Groups such as Green Bond Principles and the Climate Bonds Initiative are giving investors the tools they need. To see a report and guide from Lloyds Bank on green bonds click here.

Green bonds are a game changer. Growth in the green bonds sector is evidence that banks are starting to see the potential of low carbon infrastructure projects. If a fraction of the 80 - 90 trillion bond market were diverted to green bonds it would significantly advance climate finance.

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IDB to Double Climate Related Projects

In October last year Inter-American Development Bank (IDB) announced that it is going to double its climate related projects by increasing financing by between 25 and 30 percent by 2020. The IDB was established in 1959, it offers long-term financing for economic, social and institutional development in Latin America and the Caribbean.

As reviewed in an October, 2015 press release, starting in 2018 the bank will begin screening projects for climate risks and resilience. This will ensure that money invested goes towards environmentally sustainable projects and achieves the stated goal of helping these countries to meet their INDC targets.

The IDB is working with private sector finance to provide financing for adaptation and resilience. As a newly consolidated entity the IDB will offer innovative financial products, such as green bonds.

Historically the IDB has devoted 14 percent of its financing to climate related projects between 2012 and 2014.

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World Bank to Finance More Renewables in the Developing World

After being called out for hypocrisy, the World Bank is working to redeem itself through massive investments in renewable energy. The International Monetary Fund and the World Bank Group are holding their annual "Spring Meetings events" in Washington, DC, on April 12-17, 2016. It will be attended by thousands of government officials, journalists, civil society organizations, and participants from the academia and private sectors. The meetings will feature seminars, regional briefings, press conferences, and many other events focused on the global economy, international development, and the world's financial markets.

The World Bank has repeatedly warned of dramatic temperature increases and has called for bold action and countries to adopt aggressive targets to cut greenhouse gas emissions. In 2013 World Bank President, Dr. Jim Yong Kim, pledged that the bank will do everything it can to address climate change. The bank has been looking at business through a "climate lens" he said and he further suggested that we include the cost of carbon in energy pricing (carbon pricing) and end fossil fuel subsidies.

While the bank supports renewable energy, they have been criticized for simultaneously supporting fossil fuels. Between 2008 and 2013 the bank provided US$18 billion, or almost half of its energy lending, for fossil fuels and coal in particular.

This is at odds with Jim Yong Kim Promise to factor in global warming "with every investment we make and every action we take." In a Washing Post op-ed he warned that "we need to get serious fast” to avoid the looming “climate catastrophe."

In the wake of this disconnect between word and deed the World Bank has decided to increase its spending on renewable energy in 2016. They are specifically planing to invest in enough renewable energy in developing countries to power 150 million homes.

As outlined by US News, these plans were released in 59-page climate action plan that outlines how these investments will help poorer nations to meet the goals set in the Paris climate accord.

The World Bank's private-sector arm will increase its climate investments from $2.3 billion-a-year to $3.5 billion a year by 2020. The stated goal is to spur a $13 billion a year in private investments.

The bank also plans to help developing countries add 30 gigawatts of electricity to power 150 million homes without emissions of heat-trapping gases.

The World Bank Group said it spends about $10.3 billion a year on climate, which is slated to rise to $16 billion a year by 2020.

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Innovative Solar Energy Financing Instruments

Investments in solar energy are booming alongside some innovative financing instruments. As explained by President Obama a bit more than a year ago every four minutes, an American home or business goes solar. There are a host of new financial instruments that serve the green economy and starting in 2013 we began to see some innovative approaches to finance in the solar sector.

This includes creative approaches like master limited partnerships (MLP) and real estate investment trusts (REIT) which offer attractive tax treatment. One of the most interesting financing approaches that is growing by leaps and bounds is an institutionalized version of crowdfunding, called "crowdsourcing".

Securitizations are another interesting approach to financing that involves converting an asset into something that is tradable, like a security. Yieldcos are publicly traded companies created specifically around energy operating assets to produce cash flow and income. In 2013 several companies including NRG, Pattern, Transalta, Hannon Armstrong spun off yieldcos with varying levels of renewable energy assets in their portfolios. In 2014 SunEdison announced plans for a yieldco and in June 2015 First Solar and SunPower launched an initial public offering for their own yieldco.

"This trend is transformative for the solar industry" because of how it can unlock so much more value and generate more returns, explained Patrick Jobin, Clean Technology Equity Research analyst with Credit Suisse.

Both securitization and yieldcos increase access to low-cost financing by pooling solar assets into an investment vehicle. They differ in that yieldcos offer dividends that vary with the company's performance while securitizations offer a fixed-income for a set period. Larger projects are good candidates for yieldcos while securitizations typically involve residential solar assets. In between these two is a different class of securitizations, called "collateralized loan obligations," which are more applicable to the commercial sector where less diversity in assets means more risk.

Going forward the attractiveness of these solar financing instruments will be determined by government policy, new metrics to calculate the value potential and standardization that enable comparisons.

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New Sustainability Focused Financial Instruments

Investors have a wide assortment of new financially responsible instruments. Sustainability investment options run the gamut from simple things like energy conservation projects to complex multi-stakeholder initiatives that target social and environmental improvements. Responsible investing, impact investing, socially responsible investing covers the full range of asset classes in many sectors. This includes instruments that combat climate change, encourage conservation and support social causes. Some examples include green bonds, climate bonds, yield cos, conservation investment and natural resources

One of the most popular investments in 2015 are green bonds. They are specifically designated for the environment and the proceeds are used to fund environment-friendly projects. These tax-exempt assets are issued by federally qualified organizations and/or municipalities for the development of environmentally friendly projects like clean water, renewable energy, energy efficiency, habitat restoration, acquisition of land or mitigation of climate change.

A climate bond is an extension of the green bond concept. Some use the terms green bonds and climate bonds interchangeably while others make the distinction between the two. In the latter case Green bonds raise financing for an environmental project and climate bonds raise finance for investments in emission reduction or climate change adaptation. Climate bonds are fixed-income financial instruments (bonds) linked in some way to climate change solutions.

A yield co is a publicly traded company that is formed to own operating assets that produce a predictable cash flow. They separate volatile activities (e.g. R&D, construction) from stable and less volatile cash flows of operating assets which can lower the cost of capital. Yield cos are expected to pay a major portion of their earnings in dividends, which may be a valuable source of funding for parent companies which own a sizable stake. Yield cos are commonly used in the energy industry, particularly in renewable energy to protect investors against regulatory changes

A green mutual fund or green exchange traded fund is a broad collection of environmentally friendly stocks that are pooled together. This offers a way to diversify asset ownership thereby distributing the risks associated with owning a single stock.

Conservation investments, also referred to as conservation impact investments, are intended to return principal or generate profit while driving a positive impact on natural resources and ecosystems. This can include investments in water like watershed protection, water conservation, stormwater management, and trading in credits related to watershed management.

Natural resources are another asset class that can help support the environment.Conservation investing could also include sustainable food and fiber production, including investments in sustainable agriculture, timber production, aquaculture, and wild-caught fisheries. Finally conservation investing could also include habitat conservation, shoreline protection, emissions reduction from deforestation and degradatio. This can include investments that protect shorelines, reduce emissions from Deforestation and Degradation (REDD+), land easements, and mitigation banking.

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Event - Green Bonds 2015 Conference

The 5th annual Green Bonds conference will take place on June 22 June 2015, at the Hilton Tower Bridge Hotel, 5 More London Place, Tooley Street, London, UK.

This event is presented by Environmental Finance proud supporters of the green bond market since its inception. The conference has long been the home of movers, shakers and vital discussions in this growing market. Indeed, the seed of the Green Bond Principles was sown at our 2013 conference, when two influential bankers began a conversation about how to add some standardisation to the market.

Book your place for this year's event and influence the green bond market's next steps.

Click here for the agenda, here for the speakers, and here to register.

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China Using Drones to Combat Air Pollution

Chemical dispersing drones are being used by the Chinese government to combat the serious smog problem in Beijing. The pollution in Beijing is caused primarily by the cities five million motor vehicles, nearby coal burning, dust storms and local construction dust.

Previously, fixed wing aircraft sprayed chemicals that freeze floating particles, allowing them to fall to ground. Now these chemicals will be sprayed by an unmanned parafoil drone designed by the state owned Aviation Industry Corporation of China. The new design uses the same chemicals but can carry three time more weight (700kg) than fixed wing designs making it 90 percent less expensive to operate.

Premier Li Keqiang said in his speech at the National People's Congress in Beijing yesterday the government would "declare war" on pollution. It would focus, in part, on reducing PM2.5, the fine particles of pollutants thought to be most harmful to people's health.

The manufacturer has already carried out about 100 hours of test flights, Ta Kung Pao reported.

The company said the technology also has applications in emergency rescue, disaster relief, aerial photography, surveying and seed-sowing.

Tests will be conducted later in March led by the China Meteorological Administration.

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Event - Global Geothermal Summit: Indonesia and Philippines 2014

Global Geothermal Summit: Indonesia and Philippines 2014 will take place on Thursday March 20 to Friday March 21, 2014, in Indonesia. With in-depth research and careful investigation, the Global Geothermal Summit is ready for you to update industry information and to network with C-level executives in Bali.

Positioned in the ring of fire, both Indonesia and the Philippines are granted huge potential of geothermal. Indonesia is even estimated to own 40 percent of the world’s geothermal reserve. Challenged to increase the supply of electricity, Indonesia and the Philippines have issued policy, regulation as well as finance incentives to accelerate the exploitation of geothermal.

Who Should Attend:

♦ Governors
♦ Project Developers/IPPS
♦ License holders
♦ Financer/Bankers/private investors
♦ EPCs
♦ Drilling service and equipment providers
♦ Consulting companies

Great opportunities to meet the leading speakers from Indonesian Investment Agency (Pusat Investasi Pemerintah (PIP)), North Sulawesi Provincial Government, Department of Energy (DOE), PT. PLN Geothermal, Chevron Geothermal Indonesia, OTP Geothermal and others

For more information and to register click here.

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Beijing Passes New Air Pollution Law

China is plagued by dangerous air pollution, and the city of Beijing has taken the first step to address the issue. Beijing, one of the most polluted cities in the world, has introduced China’s first legally binding regulations. The new rules are designed to reduce PM2.5 levels were overwhelmingly approved by Beijing’s municipal congress by a vote of 659 to 23.

Particulate Matter, 2.5 micrometers or less are abbreviated as PM2.5. They are defined as fine particles in the (ambient) air that are 2.5 micrometres or less in size. They are small enough to invade even the smallest airways and they are known to produce respiratory and cardiovascular illness. They generally come from activities that burn fossil fuels, such as traffic, smelting, and metal processing.

China's national standard is 35-micrograms of PM2.5 per cubic meter, while Beijing has levels that are more than twice that level (89.5 micrograms). Beijing Mayor Wang Anshun has said that air pollution is the biggest problem concerning people’s livelihoods in the capital.

The new air pollution law was passed at the annual session of the municipal legislative body early in February, and will come into effect in March. It contains harsher penalties for polluters, including cumulative daily fines.

The city of Beijing is spending a trillion yuan to improve air and water quality in the city. Previous regulations are geared towards emissions reductions.

© 2014, Richard Matthews. All rights reserved.

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China's New Year: Smog and Drought Underscore the Contradiction of Pollution and Mitigation

As China celebrates its new year festival, many of the country's major cities appear deserted as millions of workers returned to their childhood homes in rural parts of the nation. On the upside the mass exodus has improved air quality in some of China's biggest cities. However, as the New Year was being celebrated another round of heavy smog hit a large region of the country.

In China, the Lunar New Year ushers in the year of the Horse which is one of 12 animals that make up the Chinese zodiac. According to Chinese astrology the year will be marked by conflict. One of the ongoing issues that is contributing to social tensions in the country is the problem of smog.

On Jan. 30, Chinese New Year’s Eve, China’s National Meteorological Center published yellow alerts for heavy smog in 11 provinces in central, eastern, and southern China. Visibility was less than 50 meters in some places. Smog is not only destructive to human health it also closes highways and cancels flights.

Firecrackers are a central part of New Year's tradition in China, but this year as with last people are being asked to avoid them to alleviate the air pollution they cause. Nonetheless, at midnight on January 30th, firecrackers were heard all across China.

Air pollution is not the only problem faced by China, they are also undergoing a serious drought. A dramatic illustration of just how bad the drought is can be found in a dessicated lake bed that was once China's largest freshwater lake. Once 3,500 sq km, Poyang lake in rural Jiangxi province has completely dried up due to drought.

The world largest dam, the Three Gorges reservoir water storage facility is located upstream from the lake and has contributed to the problem. This has resulted in a cascade of ecological impacts including water shortages and the decimation of the local fishing industry. It has also deprived a half a million migrating birds of food.

China is a fascination contradiction they are at one and the same time, pumping massive quantities of greenhouse gases (GHGs) into the atmosphere while leading the globe in renewable energy infrastructure like wind and solar.

China is the undisputed leader in GHG emissions and a leading consumer of coal, the dirtiest of all energy sources. They have started seven carbon trading markets in a number of cities, and they have repeatedly pledged to invest massively in efforts to clean the air. They have even enacted federal laws that put big polluters to dealth.

China’s air pollution is undeniably a big problem, both for residents struggling with airborne toxins and for the international community struggling to curb climate change. However China's air woes also represent an economic opportunity for cleantech companies.

As reported by Environmental Leader The US Department of Commerce forecasts China’s clean-tech market will triple to $555 billion by 2020.

According to report titled Stranded Down Under, by the Smith School of Enterprise and the Environment (SSEE) at Oxford, concerns about air pollution and climate change are decreasing coal demand from China. The country is replacing coal with renewables.

According to the latest International Energy Agency’s (IEA) latest annual World Energy Outlook 2013 report Renewables will account for nearly half of the increase in global power generation to 2035—with China generating more than the US, Japan and the EU combines.

Overall China has one of the most ambitious carbon cutting programs in the world. The nation plans to cut carbon emissions by up to 45 percent per unit of GDP by 2020.

© 2014, Richard Matthews. All rights reserved.

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Event - Venture Summit West

This event will take place on February 12, 2014, at the Computer History Museum in Mountain View, California. The summit content will include discussions and educational tracks focused on cleantech. The Second annual Venture Summit West, presented by youngStartup Ventures, is the premier industry gathering connecting venture capitalists, corporate VCs, angel investors, technology transfer professionals, senior executives of early stage and emerging growth companies, university researchers, incubators and premier service providers.

Whether you are an investor seeking access to new early stage deals, or a CEO or Founder of a new venture looking for funding, visibility and growth, Venture Summit West is one event you won’t want to miss.

Venture Panels

Hear more than 40 top tier VCs, Corporate VCs and Angel Investors on the key issues facing Investors and Startup CEOs alike. Industry experts will provide updated analyses and share their experience with the audience. Company Presentations Discover more than 50 of the hottest early stage and emerging growth technology, life sciences and clean-tech innovators as they present live to leading investors. High-level Networking: Connect with investors, startups and potential partners.

Audience Profile

Venture Capitalists, angel investors, corporate VCs, CEOs, CFOs and other senior management of early stage and emerging growth ventures, technology transfer professionals and premium services firms.

To register click here.

© 2013, Richard Matthews. All rights reserved.

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Event - Clean and Cool 2013

This event will take place from November 30 to December 7, 2013 in Colorado. Clean and Cool Mission Colorado is an entrepreneur mission to help the UK’s most promising early stage and innovative cleantech SMEs do business in the US faster.

A total of 16 of the UK’s most innovated clean technology companies have been selected for the 2013 Clean and Cool Mission in Colorado. Among the delegation are companies whose innovations address some of the most pressing climate challenges in the country and worldwide, including increasing transport pollution, improving energy efficiency in residential homes and easing reliance on peak grid supply. These companies will showcase their innovations and explore business opportunities associated with tackling climate change. The Mission will help these companies to develop quality contacts with investors and partners, gain unique insight, profit from fresh stimulus, and improve pitch and profile. There have been eight previous missions, supporting the most promising UK entrepreneurs and early stage businesses working in web innovation, future health and clean technology.

Colorado has been selected as the focus because it is rapidly establishing its US and global prominence as a cleantech innovation ecosystem. Colorado is the number one U.S market for renewable energy, the second best state for entrepreneurship and innovation, and with over 300 cleantech and 1600 support companies the state is currently 3rd for US cleantech vc financing.

In 2013, the Clean and Cool Mission will coincide with The Industry Growth Forum, the premier event for clean energy startups to maximize their exposure to receptive venture capital, corporate investors, and strategic partners.

Clean and Cool Mission is run by entrepreneurs for entrepreneurs in partnership with the Technology Strategy Board, UKTI and private sector sponsors. The Technology Strategy Board (TSB), a business-led UK government body which works to create economic growth by ensuring that the UK is a global leader in innovation. Sponsored by the Department for Business, Innovation and Skills (BIS), the Technology Strategy Board brings together business, research and the public sector, supporting and accelerating the development of innovative products and services to meet market needs, tackle major societal challenges and help build the future economy.

The following fields are part of the mission:

· Clean or green transportation fuels for aviation and motorcycles
· Electricity & other Energy conservation
· Smart meters and smart grids
· Thermal sciences
· Climate change
· Wind Solar Power
· Cutting emissions and pollution

UK Cleantech Startups Selected for the innovation Mission

· Agility Global has blended Formula 1 and aerospace design with advanced engineering and electric technology to manufacture the world’s first high-performance, clean tech motorcycle. Saietta, is a premium, electric urban sports motorcycle that more than lives up to its name. Strikingly designed, fast and powerful, it is also clean and green.

· Alquist has pioneered an award-winning Data Center temperature management system, targeted to become the new world standard for a $17bn industry segment growing at 28% per annum. Alquist’s monitoring system enables Data Center operators to manage risk and reduce energy spend, resulting in reduced carbon emissions.

· Arcola Energy is a developer, manufacturer and retailer of fuel cell-based low carbon energy solutions, converting chemical energy from a fuel, such as hydrogen, into electricity. Ultimately, this makes electricity more accessible and cost-effective for consumers and businesses. Arcola’s technology can be used in the home and within the construction, entertainment, education and automotive industries.

· To support the continued roll-out of smart grids throughout the U.S., Each For All Productions has developed the Merismus micro-grid which is plugged into a smart meter to automatically manage grid and microgeneration energy usage to lower energy bills through very little effort.

· Energy created through the roof which could eliminate heating, cooling and hot water bills is the aim of a new product from Flint Engineering which blends a photovoltaic and solar thermal collector in a roofing/cladding material to be used on both new and refitted domestic and commercial buildings.

· The energy output of the sun is about 386 billion megawatts, presenting a free and inexhaustible power source that can be captured and converted into electricity. Fullsun Photovoltaics is doing exactly that by using High Concentrated Photovoltaic (HCPV) technology in a lightweight solar module designed for utility and commercial/industrial rooftop markets.

· Current technology is incapable of realistically meeting future demand for sustainable aviation biofuels. The mission of Green Fuels Research, a new venture building on 10 years’ CleanTech heritage, is to develop enabling technologies at every step in the value chain from primary producer to airplane

· In the US, a massive $7.4 billion is spent on cooling datacentres annually. Iceotope supports these applications by providing massive processing power, memory and storage in an integrated computing system cooled with liquid, which saves energy and lowers costs.

· Magnifye superconducting permanent magnets can be used to improve the efficiency of any electrical machine. Ten times stronger than conventional magnets, they are small enough to fit into the palm of the hand and large enough to power a train or a cruise liner. With almost limitless applications, Magnifye could transform the way the world powers electrical machines.

· Moixa Technology plans to put millions of smart batteries into customer premises to reduce peak period demand on the grid and improve the energy efficiency of essential Direct Current (DC) devices such as lights and mobile phones. Use of Moixa’s technology helps to significantly reduce bills and improves energy security by enabling the storage of energy at off-peak times.

· PJH Partnership has developed an innovative and domestically applicable solar power storage unit. The system is targeted to address grid-scale storage and balancing needs resulting from the continual growth of electricity generation from domestic houses.

· Renovagen has developed a transportable solar power solution that is capable of generating ten times more power than existing technologies. Designed for temporary or semi-permanent use in remote off-grid locations where self-sufficient power generation is essential.

· Considerable energy savings in both domestic and commercial environments can be realised by using high power heat batteries. Sunamp has developed a Heat Battery that is super-compact but can store heat from conventional and non-conventional heat pumps and boilers, delivering it quickly and with maximum energy efficiency as needed.

· Through innovation and ingenuity Straw Fuels has created a range of eco-friendly fire logs. Made from straw, the logs are clean, easy to use and produce much lower levels of smoke than traditional wood.

· Public vehicles, particularly buses, have a reputation for polluting roads, but a new hybrid-electric system from Vantage Power has been designed to help the bus industry to meet the increasing demands for lower emissions, improve air quality, and cut fuel consumption simultaneously, without the need for investing in new hybrid buses.

· The U.S. has a target of 20% renewable energy by 2020, and this target has been behind the development of a new grid-scale energy storage battery from Wind Power Performance that promises to lower energy storage costs globally.

Agenda

The week-long agenda is designed to provide unparallelled insights, connections and opportunities.

Monday Dec 2
08.45 – 12.15 Pitch sessions and panel discussion
Venue: Hotel Boulderado, Columbine Room, 2115 Thirteenth Street, Boulder, CO 80302

Tuesday Dec 3
18.30 – 20.30 UKTI and British Consul hosted Reception and Networking
Venue: Galvanize, 1062 Delaware St, Denver, CO 80204

Thursday Dec 5
18.30 – 20.30 Rocky Mountain Innosphere hosted panel and networking event
Venue: All Staff Room, New Belgium Brewery, 500 Linden, Fort Collins, CO 80524

For more information click here

© 2013, Richard Matthews. All rights reserved.

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Discussion - The Other Debt Ceiling: Using Finance to Balance Our Environmental Budget

This discussion will take place on November 20, 2013, and is presented by Solar One and NYC ACRE 7 p.m. -9 p.m. (Doors at 6:30), The WNYC Jerome L. Greene Performance Space 44 Charlton Street, New York City.

As weather events become more extreme, water shortages threaten, and human sprawl leads to biodiversity loss, there is a new focus on the global economic impact of environmental degradation. Studies from the National Oceanic and Atmospheric Administration, the Harvard School of Public Health, and others assert that our active growth and inactive conservation efforts have left us with a trillion-dollar bill.
So how do we pay down this debt? In recent years, innovators in policy and finance have started to answer that question by creatively using the tools of debt, capital, and ownership to clean up our lands, preserve our national treasures, and accelerate clean energy adoption.

For this event, we look at both sides of environmental debt. We will discuss the policies and ideologies that led us to this level of environmental debt, and then debate what financial and regulatory solutions exist to enrich both the environment and the economy.

The discussion is a featured event of Solar One and NYC ACRE’s cleantech panel discussion series, Clean Energy Connections.

Event Coordinator is Sara Jayanthi (Sara@solar1.org) Contact number is 212 505 6050.

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Chinese Smog Crisis is Driving the Transition to a Greener Economy

Air quality and other environmental concerns are forcing China to transition to a greener more sustainable  economy. With visibility in Harbin, China being reduced to 10 meters, the city was shut down by a thick blanket of smog that descended on Monday, October 21. Levels of smog in the city are five to ten times worse than America's most smog ridden city, (the Southern California city of Bakersfield). While officials are blaming the dense smog in Harbin on heating, the real issue is the country's reliance on coal.

Smog is caused by particle pollution (soot) composed of tiny bits of solids and liquids that can lodge deep in your lungs and raise the risk of heart disease, stroke, and asthma attacks. The Word Health Organization (WHO) recently reported that air pollution leads to cancer. A July report indicated that increasing air pollution in China is cutting short the life spans of people living in the north. According to the study published in the U.S. journal 'Proceedings of the National Academy of Sciences' the average person who was alive in the 1990s and living in Northern China will live an average of five-and-a-half years less than his counterpart in southern China.

An index measuring PM2.5, or particulate matter with a diameter of 2.5 micrometers (PM2.5), reached a reading of 1,000 in some parts of Harbin, in Bakerfield that number hovers around 100. A level above 300 is considered hazardous, while the WHO recommends a daily level of no more than 20.

Harbin is the capital and largest city of Heilongjiang province in China's northeast region, as well as the tenth most populous city in the nation with a population of 11 million people. Harbin is not the only city in China to be severely impacted by smog, other cities in the northeast including Tangshan and Changchun, have their own serious air quality problems. Last winter Beijing suffered its own smog emergency when the PM2.5 surpassed 900.

While China is already a world leader in renewable energy production, these efforts do not appear to have made much progress in smog reduction. Chinese citizens are increasingly alarmed about the situation prompting the government to set ambitious targets for emissions reductions in key industries by 30 percent by the end of 2017. As the world's biggest auto market, Chinese cities have also announced policies that restrict new vehicle purchases.

More recently, the government has launched an 800 million dollar fund for cities designed to encourage cleaner air initiatives. Another way that China may be able to reduce pollution is through eliminating the nations overcapacity in energy generation.

While there is much that the government can do to minimize emissions from industry, they will also have to tackle the issue of home heating. Policies like handing out free coal for heating are incompatible with efforts to address the smog problem. 

The government cannot afford to dither, Chinese are increasingly speaking out and protesting against poor air quality and other environmental issues. This costs the country in terms of productivity and in terms of slowing the flow of expats returning home from abroad and contributing to the economy.

Concerns about air pollution are driving the transition to more efficient and less polluting energy sources. This will not only calm social tensions caused by an increasingly outraged Chinese public, it will add to longer lifespans which will yield economic dividends.

Do to higher cost of compliance and potentially lower production, a more focused sustainable growth strategy may have short-term economic impacts. But longer term, these measures will generate sustainable growth.

To definitively combat the problem, China will either have to sacrifice growth or invest in cleaner air initiatives associated with a greener economy.

© 2013, Richard Matthews. All rights reserved.

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