A few years ago, capital was crowding into cleantech on the theory that the energy transition was accelerating on every vector. The picture has since become more nuanced, with fund managers and institutional investors revolving back to a return’s orientation balanced with investment horizon realism. Clean energy project developers are being asked to show cash flow potential, and new technologies need a demonstrable path to market. Short-cycle investors are focused on margins, while long-cycle investors are still attuned to growth opportunities. How do companies, investors and developers craft their strategies in this new multiple choice capital markets environment?
Developments over the last three years have shaken expectations of a linear global transition as climate goals compete with economic development, energy access, energy security and affordability. The events of the last few years have made it clear that there cannot be an energy transition without energy security. We are beginning a multidimensional transition: a multispeed, multifueled and multi-technology transition with different road maps and end points for different countries. How can the deployment and scaling of new technologies be accelerated? What will be the approaches to implementing the COP 28 commitments?