S2E1: What can carbon removal learn from cleantech?—w/ Jigar Shah of Generate Capital

There are a number of proven cleantech solutions that have yet to enjoy commercial success. So, how do we encourage investors to direct their money toward scaling up such crucial climate solutions? How do we convince financiers that sustainability pays?

 

Jigar Shah is the Cofounder and President of Generate Capital, a financial services firm dedicated to building the infrastructure necessary to deliver affordable and reliable resource solutions. A luminary in the realm of financing renewable energy, Jigar is also the author of Creating Climate Wealth: Unlocking the Impact Economy. On this episode of Reversing Climate Change, Jigar joins Ross and Christophe to discuss his mission to help entrepreneurs and companies scale up proven climate solutions.

 

Jigar weighs in on the relationship between policy and market actors as well as the biggest failures and successes of the last decade in clean tech. He also explains the idea of deployment-led innovation and shares the connection between Power Purchase Agreements (PPAs) and project finance. Listen in for Jigar’s insight around the financial infrastructure of a carbon marketplace like Nori and learn how Generate plans to use its recent $1B raise to help scale climate solutions.

 

Nori just got started on Patreon if you'd be so kind as to support the podcast!

 

Key Takeaways

 

[3:50] Jigar’s path to Generate Capital

Customers want service that comes with equipment Work with SunEdison to finance solar + wind projects Help scale up in other sectors through Generate

 

[6:11] The relationship between policy and market actors

Customers willing to pay certain amount more for clean tech Policy steps in to fill in gaps (e.g.: tax credit on electric cars)

 

[10:42] The connection between PPAs and project finance

Invest in single facility vs. growing corporation Equity share in replicating model globally

 

[12:17] The concept of deployment-led innovation

Myth that carbon reduction tech not available at scale because too expensive Only get cost reduction when start deploying working tech (e.g.: solar panels)

 

[14:39] Jigar’s take on the biggest failure + success in the last ten years of clean tech

Failure = projects not worth deploying at scale (e.g.: ocean wave tech) Success = lithium ion batteries in electric vehicles

 

[20:35] What it means to have a social license to operate 

Can’t put off climate solutions because ‘busy’ Social pressure to apply resources to sustainability

 

[24:44] The parallels between carbon removal + clean energy

Solution like carbon sequestration in soil = proven system Costs go down as volume of credits rises (beneficial cycle)

 

[27:13] Jigar’s insight on the financial infrastructure of a carbon removal marketplace

Facilitate behavior change and permanence buyers want Allow for scale and align incentives (don’t get paid unless drawdown occurs)

 

[30:55] How regenerative agriculture differs in terms of risk assessment

Verification more difficult (less accurate than solar and wind) Permanence piece harder to define

 

[36:30] How Generate plans to use its recent $1B raise

Continue to scale up proven tech yet to have commercial success Support business model innovation around climate solutions

 

Connect with Ross & Christophe

Nori

Nori on Facebook 

Nori on Twitter

Nori on Medium

Nori on YouTube

Nori on GitHub

Nori on Patreon

Nori Newsletter

Email podcast@nori.com 

Nori White Paper

Subscribe on iTunes

Carbon Removal Newsroom

 

Resources

 

Generate Capital

Jigar on LinkedIn

Jigar on Twitter

The Energy Gang Podcast

SunEdison

Carbon War Room

National Renewable Energy Laboratory

California’s Low Carbon Fuel Standard

Ramez Naam

Creating Climate Wealth: Unlocking the Impact Economy by Jigar Shah

Kemper Clean Coal Project

Microsoft’s Carbon Negative Plan

Rodale Institute