Post globe tom rand
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The document discusses two types of growth for cleantech innovation: linear free-market driven growth and non-linear policy-driven growth. It argues that policy measures like carbon pricing, regulations, and incentives are needed to spur the type of large-scale industrial production required to drive cleantech innovation through its manufacturing and commercialization cycles. Specific policies highlighted that could help include developing a better venture capital environment, getting ahead of larger carbon policy debates, using green bonds to attract more investment, and creating technology-neutral incentives beyond just feed-in-tariffs.
Post globe tom rand
- 1. Cleantech:Supporting Innovation.March 29th 2010Tom Rand, P.Eng., Ph.D.Cleantech Practice Lead, MaRS Discovery District
- 2. Two Types of Growth1. Linear, Free-Market Driven2. Non-Linear, Policy/Event-Driven
- 3. Market Pull – Organic GrowthProject Finance / Demand$ $Innovation/Manufacturing CycleEarly-StageTechnologyManufacturingB-Rounds, etc.Venture Capital
- 4. Policy-Driven Market PullCarbon pricing & tariffsProject Finance / DemandRegulationCap and Trade/DividendSupport of price-disruptive technology$ $Innovation/Manufacturing CycleEarly-StageTechnologyManufacturingB-Rounds, etc.Venture Capital
- 5. RepercussionsNeed Industrial production that can scale quickly:Commodity-based (eg. Morgan Solar)Simple, scalable manufacturing basis (Morgan)Can be incrementally added to infrastructureStrong industrial partners (eg. Samsung)
- 6. What We’re doing RightFITLocal content on FIT infrastructureAttracting industrial giants like Samsung
- 7. What We NeedBetter venture capital environment, risk-taking.Get ahead of the curve on larger carbon debate.Green Bonds – attracting larger investment $ as low-cost debt, eg. Pension fundsDevelop technology-neutral incentives (non FIT) : Enhanced GeothermalStorage, large-scale and distributed.
Editor's Notes
- #3: Cleantech – renewable energy in particular – will follow one of two types of growthLinear – corresponds to a view that the world will remain much the same tomorrow as it is today. Non-Linear – corresponds to the view that something will force a changePeak Oil, sudden disruptive pricing on renewables, Climate Change.Not qualified to comment on Peak Oil, but am qualified to comment on Climate Change.What event will drive policy don’t know – hurricane, drought attributable in the publics mind, US deciding to catch up with China on Cleantech spendinggeneral awakening on the part of the public.Who knows?
- #4: By market pull, I really mean creating and supporting sustained demand for something.XWe all familiar with the typical innovation cycle. Invent something, learn to produce at economic levels, sell into the market; meet and also create demand.X This is also where MaRS plays; nurturing high-tech companies.This is no longer sufficient, we will not meet our climate challenge waiting for demand for clean energy to magically appear.Again – we’re replacing something that – aside from the externality of carbon – seems to work quite well, and has very strong vested interests.
- #5: We remember the Market Pull slide, creating and supporting demand.Green Bonds is a tool to redirect savings/capital; from both the public at large, as well as large institutions like pension funds.Lower the cost of debt, lower the cost of renewable energy production.