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.
With Great Power: What other industries can teach utilities about innovation
Mining the deep sea
The good and bad of carbon capture
The early days of transoceanic hydrogen transport
The fungus among us
Building out a U.S. solar supply chain
AI for climate: a real world test
The carbon market’s quality problem
Keeping copper from limiting the energy transition
Four ways to store sunlight
Unpacking EPA’s newly proposed power emissions rule
The great Bitcoin energy debate
Understanding the transmission bottleneck
The Carbon Copy: A rogue geoengineering startup sparks worry
How to build more hydropower
What the new Treasury rules mean for EV supply chains
SVB, the banking crisis and climatetech
Betting big on renewable natural gas
The greenhouse gas you don’t know about
The Carbon Copy: The great electrician shortage
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