It's been a year and a half since the Inflation Reduction Act was passed. In that time, we've seen $110 billion in planned investments for factories that are pumping out electric cars, batteries, solar modules, and wind towers.
The upper end of 2030 forecasts show nearly twice as much zero-carbon generation getting built compared with scenarios without the law in place.
Much of this activity is the result of a new shift in the US tax code that allows wind, solar, storage, hydrogen, carbon capture, and manufacturing tax incentives to be sold for cash. It’s creating a lot more deal volume as many more companies can now buy those credits to support new development.
“This very rarely happens that a new market forms basically overnight. The private estimates on how big the market gets get it to something like $80 or $100 billion dollars by the back half of the decade,” said Alfred Johnson, co-founder and CEO of Crux, speaking at Latitude Media’s Frontier Forum.
In January, Crux closed an $18 million Series A round led by Andreesen Horowitz – bringing the company’s total funding to $27 million to scale its sustainable finance platform.
It’s been about a year since credits started trading, with activity really picking up in the last six months. Much of our understanding of how the market is performing comes from new research from Crux, which recently surveyed 150 buyers, sellers, and intermediaries – and found a mix of eagerness, hesitance, surprises, and lots and lots of questions.
Stephen Lacey spoke with Alfred Johnson live during Latitude's Frontier Forum to address many of those questions – and riff on how this new market is taking shape. You can watch the full conversation, including questions from the audience, here.
Financing first-of-a-kind climate assets
What do you do with a 100-hour battery?
Update: What the new Treasury rules mean for EV supply chains
EV charging on both sides of the pond
The cost of nuclear
Mailbag episode! Interest rates, carbon dioxide removal, load growth, and more
The Volts crossover episode
The market for microgrids
The pace of home electrification
How is U.S. industrial policy affecting actual climatetech investment?
What electric forklifts teach us about creative policy [partner content]
Climate tech startups need strong techno-economic analysis (TEA)
Reviving the stagnant plant based meat market
Fixing interconnection
Stopping geoengineering, by accident
The food-energy nexus
Can the V2X dream become reality?
Seeking the holy grail of batteries (Rerun)
Navigating the electricity gauntlet
Beaming 24/7 solar… from space
Create your
podcast in
minutes
It is Free
Insight Story: Tech Trends Unpacked
Zero-Shot
Fast Forward by Tomorrow Unlocked: Tech past, tech future
The Unbelivable Truth - Series 1 - 26 including specials and pilot
A Prairie Home Companion: News from Lake Wobegon