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Why Venture Capital And Government Partnerships Are A Make-or-Break For Cleantech

Emily Dao

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Companies band together to form an environmental partnership

America has always been reliant on fossil fuels, with over 80% of its energy obtained from oil, coal, and gas. In 2016, CO₂ emissions produced by burning fossil fuels comprised nearly 80% of greenhouse gas emissions –and that’s not to mention their responsibility for 94% of total carbon dioxide emissions. Luckily though, with increases in emissions came cleantech companies, who hope to lead the shift towards cleaner, renewable energy.

However, for these newborn companies, finding funding can be a struggle. For the greater majority of startups in the environmental sector, partnerships are crucial to building and sustaining their companies.

The Venture Ecosystem for Cleantech

To better understand the venture ecosystem, The Rising spoke with Jigar Shah, founder of Generate Capital, a venture firm that manages over $200 million to back cleantech startups. Shah said he started Generate Capital motivated by his own experience growing his solar startup, SunEdison.

The Future of Clean Energy | The Rising

“We didn’t have a go-to investor when we started SunEdison,” Shah told The Rising in an email interview. “Generate Capital is that go-to investor and we want to make sure every entrepreneur that works hard has fair access to project finance for their ideas.”

Today, according to Generate Capital’s website, it currently invests in renewable energy, resources, food, and water, among other sectors. Evidently, it hopes to lead the change in renewable resources.

The Decrease in Venture Funding

Unfortunately, research shows investment in cleantech by venture capitalists has taken a downturn in recent years. A 2016 Brookings report found total VC investment in cleantech companies dropped by 8% since 2011. (That’s after a rise from 2008-2011.)

VCs have long been instrumental in moving the “resource revolution” forward. So with this decline in VC investment, how else can cleantech startups survive in the business world?

The Importance of Partnerships In Cleantech

A study conducted by the University of Maryland, University of Cambridge, and Technical University of Munich found government collaboration led to tremendous growth for cleantech startups. The report showed patenting activity rose by more than 73% when cleantech startups chose to work with the government.

The data doesn’t stop there. A Research Policy study showed that when cleantech startups licensed government-developed technology, financing deals would go up. Not just by a bit either – by some 155%. In perspective, that’s more than twice the amount of financing deals for comparable companies. Evidently, partnerships are essential to the success of cleantech companies.

Laura Diaz Anadon, Climate Change Policy Professor at the University of Cambridge, echoes a similar sentiment to these studies. She told Forbes, “Cleantech that comes from public-private partnerships will be essential for meeting global climate and sustainability goals.”

Conclusions

With the effects of climate change becoming increasingly prevalent, it’s important cleantech startups continue to rewrite the nation’s energy narrative. However, cleantech startups can’t reach their full potential without partnership. Cleantech might be an area where returns aren’t as immediate for investors, but some funds are already on board.

Not too long ago, Al Gore’s Generation Fund raised a $1 billion third fund to fund sustainability startups. Shah’s Generate Capital is another leader in the sustainability venture space. As the space becomes increasingly popular, it wouldn’t be surprising to see more firms enter the space. The general consensus seems to be that money isn’t everything in cleantech, but it sure helps.

But altogether, it’s going to take much more than a couple of funds to truly create a sustainable future. To invoke real change, partnerships must be more open, and it’s clear to see public and private sectors need to work together. Now, it’s just a matter of seeing how things play out and what that will look like in the coming years.

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Business

Plant-Based Meat: Just A Fad Or The Future Of Sustainability?

Emily Dao

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A few years ago, if someone brought up plant-based meat, they would get a weird stare and a chuckle. What sounded good about meat made out of … plants? But a lot has changed since then. Now, the market for plant-based meat is only continuing to grow in popularity, with projections for the market to be worth $85 billion by 2030. With many major industries adopting plant-based options to their menus, it is showing the world’s gradual recognition of the dangers of climate change.

To get a better idea of where the plant-based meat industry is going, we chatted with Lone Thomsen, the Chief Marketing Officer at The Meatless Farm Company, a UK-based startup that looks to reduce meat consumption and offer customers a tasty, more environmentally-friendly alternative to their diets.

What’s Driving The Surge Of Plant-Based Meat?

A Deloitte study found that consumers’ rising desire for plant-based meat actually isn’t from vegetarians or vegans alone. Rather, it is “flexitarians” who are largely driving the market.

Flexitarians still eat meat but want to reduce their daily consumption for health or sustainability reasons. As reported by Barclay’s, roughly one-third of Americans, or 100 million people, follow a flexitarian diet. And that number is only continuing to rise.

Plant-based meat isn’t just a fad, Thomsen says. And the growing number of flexitarians proves this is true.

Lone Thomsen, CMO at The Meatless Farm Company, tells us she believes plant-based meat is here to stay.
Lone Thomsen, CMO at The Meatless Farm Company, tells us she believes plant-based meat is here to stay.

“Consumers have become more conscious about what they eat and how that impacts their bodies and health as well as the environmental footprint,” Thomsen said in an e-mail. “It’s [plant-based meat alternatives] good for you and it’s good for the planet.”

The key to success for the emerging plant-based meat market? Options. A huge influx of popular franchises, such as Burger King, Red Robin, and White Castle, have adopted meatless options to their menus.

Now, The Meatless Farm Company, Impossible Foods, Beyond Meat, and others are hoping to make this dietary switch even more convenient for consumers.

How Did The Meatless Farm Company Come To Be?

Founder Morten Toft Bech started the company in 2016 when his family struggled to prepare meals that were both nutritious and tasty but also didn’t hurt the planet.

Two years later, The Meatless Farm Company engineered a recipe for meatless burger patties, mince, and sausages. A mix of herbs and spices, rice, beetroot, carrots, and pea and soy protein sources make up their products. All ingredients are sustainably sourced.

“By offering a product that cooks, tastes, and looks like meat, we are offering consumers an easy solution to change their behavior and reduce their red meat consumption whilst still being able to enjoy their favourite recipes and getting the right nutritional levels,” Thomsen said.

The Meatless Farm Company launched exclusively with Whole Foods last summer and has plans for further expansion in 2020. The company has also just recently kicked off its partnership with the Italian restaurant Pomodoro Rosso in New York.

Through these collaborations, the company hopes to show consumers how versatile their products are and how they can be easily integrated into traditional cuisines.

What Is The Impact Of Going Meatless?

Recently, there has been a huge push for more people to adhere to “Meatless Mondays.” This flexitarian concept encourages people to go meatless for just one day of the week.

Reducing daily meat consumption has proven to an extremely healthy dietary switch. Just some of its positive implications include decreasing the risk of heart disease, cancer, and diabetes. Not to mention, going meatless is also extremely beneficial to the environment.

On the Meatless Mondays website, there are three main reasons to limit consumption for the environment. For one, it helps decrease water usage. In comparison to the 39 gallons of water it takes to produce a pound of vegetables, just one pound of meat requires 1,700 gallons of water.

Two, a reduction in daily meat intake also helps reduce greenhouse gas emissions. Three, it also helps lower fossil fuel dependency. If grain used to feed livestock was instead used to feed people, it’d be enough to feed 840 million people.

Earlier this year, The Meatless Farm Company debuted its “Meatless Consumption Target” campaign. Their goal was to encourage UK households to switch to one plant-based meal per week.

In a study performed alongside environmental scientist Dr. Joseph Poore, researchers found if every UK household were to swap out meat for one meal a week, greenhouse gas emissions in the UK would be cut by 8.4% (or 50 million tons). That’s the same as removing 16 million cars from the road.

Looking Ahead At The Future Of Plant-Based Meat

Anyone can go out to a fast-food restaurant and try a meatless burger out of curiosity. However, companies like The Meatless Farm Company want to make sure plant-based meat can be served at home too.

One of the biggest concerns with adopting a more flexitarian diet is that of convenience. Sure, it is easy to point fingers at those not following the perfectly sustainable diet. However, until recently, access to these options was fairly limited.

Typically, the typical consumer focuses on two things: accessibility and affordability. As companies continue to come up with more plant-based meat options, we should expect more consumers to change up their diet — even if it’s just for one day out of the week.

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Black Friday: Amazon Adds Greatly To Unsustainable Throwaway Culture

Maddie Blaauw

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Black Friday, which happened just two days ago, is a day full of great deals, ones that are bringing millions out to shop; but at the same time, it is also fueling a new weave of throwaway culture. On Black Friday, companies typically make record sales.

And his year was no exception; companies made over $7 billion in sales this time around. But while many are raving about the great deals they got, some environmental activists are drawing attention to the impact of throwaway culture.

Specifically, as online shopping becomes increasingly popular and convenient for customers, how is it impacting throwaway culture? And what role has Amazon had in perpetuating that culture?

The Shift To Online Shopping Exacerbates Throwaway Culture

While the majority of Black Friday shopping still takes place in brick-and-mortar stores, each year an increasing amount of the day’s transactions are taking place online. From 2017 to 2018, online shopping on Black Friday increased by 23.6%.

Totals for 2019 are still up in the air, but the upward trend of online shopping will likely increase again. An estimated 800 million packages will be shipped in the upcoming weeks by the United States Postal Service alone. 

At first, it might seem that online shopping is a benefit for the environment. After all, consumers are not driving in their cars to get to stores.

However, with the rise of one day- and two day- shipping, largely driven by Amazon, online shopping has taken a sharp swing towards becoming unsustainable

Fast Shipping Generates Lots Of Waste, Sparks Throwaway Culture

The waste generated from these fast shipping rates is certainly not a secret. The topic has drawn concern from many environmental activists.

Shipping goods within one or two days means giving each item bought individual packaging. This packaging often cannot be recycled, composted, or reused. Then, items can be shipped separately to prevent delays.

As a result, more delivery trucks are put out on the roads to transport them, increasing vehicle emissions. 

Many retailers offer returns for free. Then, instead of taking the effort to restock returned goods, retailers may just throw them away.

This is very common with returned cosmetic items. Not only does this generate large amounts of waste as a reckless nonuse of resources, but it also doubles all of the transport and packaging environmental tolls.

As shoppers opt for online deals, these effects will increase. One of the largest and most popular companies giving shoppers an online shopping option is Amazon, and many protesters are taking aim.

Black Friday Protests: Concerns About Climate Continue

Climate protesters took to the streets all over the world on Friday in an attempt to bring attention to environmental concerns. Many took place in France, where the American cultural phenomenon has caught on over the past few years. 

Protesters weren’t alone. More than 200 companies, most of them based in France, boycotted the event, closing doors and taking down websites for 24 hours.

These 200 companies follow in the footsteps of outdoor merchandise retailer REI, a more familiar brand in the States. Since 2015, the company has kept stores closed on Black Friday, while still paying employees.

Instead, they encourage their staff and families to explore the outdoors and spend time together. 

French Parliament Motions To Ban Black Friday

The French Parliament, receiving a strong signal from the country’s population, has even put forth an amendment to “ban” Black Friday.

While still far from becoming a law, the proposal nonetheless has gained attention worldwide. 

Large amounts of the protesters were youth, as Black Friday also coincided with the “Fridays for Future” campaign started by teen activist Greta Thunberg. Many protests were also aimed at Amazon, as a result of the environmental cost of fast shipping.

Activists gathered outside of the headquarters in France and distribution centers, trying to voice environmental concerns to Jeff Bezos. 

What Is Amazon Doing To Combat The Issue

Protesters focused on two topics: Amazon and the consumer. Amazon has responded to the unrest by restating its environmental goals, announced several months ago.

The company aims to obtain 100% of its energy from renewable sources by 2030. Specialists at Amazon currently estimate that about 40% of the total energy used comes from renewable sources.

Amazon also stated that it plans to invest $100 million to restore rainforests and wetlands. Finally, they will attempt to become net carbon neutral by 2040. If able to do so, the company will be 10 years ahead of the Paris Agreement.  

What Can We Do To Combat Throwaway Culture?

What can consumers do this holiday season to help the environment? Asking everyone to cease online shopping altogether is unreasonable.

Certainly, consumers should not take full blame blame for the environmental crisis, as those selling the products, and governments that oversee the transactions should take responsibility as well.

Nonetheless, there are some small steps that everyone can take in these next few weeks to minimize harm.

  • Choose longer shipping options when shopping online, so items can be packaged, transported, and delivered together, cutting down on waste and emissions.
  • Order required items all at once instead of individually over time to help to achieve the same effect. This helps reduce the throwing away of multiple packages, common of throwaway culture.
  • Limit online returns as much as possible, especially with items that will likely just be thrown away by the manufacturer. While some returns are necessary, limiting impulse buys and similar habits can help.
  • Support green companies and companies that focus on protecting the environment.

Whether on Black Friday or any other time, if we are all a little more mindful of the environmental effects of our shopping habits, we can make a big impact.

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Advocacy

Most Australians Want Businesses To Be Fully Powered By Renewables, Poll Finds

Rich Bowden

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Renewables

A whopping 68.5 percent of respondents urged Australian businesses to source power entirely from renewables, according to a uComms poll. Moreover, the poll also found that 78.9 percent of people wanted businesses to use more solar and wind energy. Additionally, some 65.7 percent said they would be more likely to buy products or services from companies that do so. It is safe to say that the poll is a signal.

Australians Want More Action On Climate Change And Pivot Towards Renewables

The poll finds Australians want the business community to do more to integrate renewables into their energy mix.

“This poll clearly shows that the overwhelming majority of Australians want businesses and corporations to step up and take action on climate change,” Lindsay Soutar, a senior campaigner at Greenpeace Australia Pacific, says in a media statement.

He was quick to point out Australia’s over-reliance on the fossil fuel industry. Consequently, he believes the issue is something the business community needs to address.

“The biggest driver of climate change in Australia is coal, which is still burned to make a large amount of our electricity.

“As some of Australia’s biggest users of electricity, businesses and corporations have an obligation to clean up their act and make the move to 100% renewable energy,” he added.  

Businesses Respond To Call For Renewables

There are many examples of Australian businesses that are already committing to change towards a renewable energy future. One is the banking and investment firm Macquarie Group. The company recently announced it has joined a new sustainability initiative.

It is the RE100 initiative, which encourages influential businesses to source their entire energy supply from renewables.

“Macquarie will seek to develop projects to supply the green energy for its new Sydney headquarters and Melbourne office,” said the bank in a recent media release. “Macquarie has been carbon neutral in sourcing its energy supply since 2010 through the purchase of carbon credits.”

“The commitment from Macquarie Group means that it now joins the ‘Big Four’ Australian banks in agreeing to source all of their electricity consumption from renewable sources under the RE100 initiative.”

Macquarie Continues To Support Fossil Fuel Investments

However, while Macquerie’s public pledge to source 100 percent of its energy from renewables has been applauded, others remain skeptical. Even some of Macquerie’s own shareholders question Macquarie’s continued investment in fossil fuels.

Market Forces reported that Macquarie’s shareholders have grilled the company over its financial backing of oil, gas and coal projects. After all, why would it do so after announcing a global risk scenario analysis on climate change?

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