This is ZERO #7
FOAK climate investments (not a misspelling). Regenerative agriculture film. Climate project finance primers. Your training is never complete. Mo' money vs. no money. Quotes to motivate.
What the FOAK!?
Yep, that’s my favorite new acronym.*
FOAK = First Of A Kind
In this context, it refers to financing low or negative carbon solutions that have not been built at scale.
(I’m also sure that another spelling of FOAK has been uttered in frustration by teams advancing this cause.)
We need this climate “technology to infrastructure” evolution if we are to achieve our 1.5 degree goal.
What kinds of projects does FOAK refer to?
Dozens of climate solutions on the Project Drawdown’s list of 100 that have not become “bankable” yet.
Just as has happened with wind, solar, and green building, with trillions invested in these profitable projects in recent years, the same also needs to occur with carbon capture and sequestration, and a slew of other important innovations.
To dive deeper on this topic, I recommend two great pieces from recent weeks related to project finance for climate innovations.
#1 — The Unglamorous Approach to Impact Investing In Energy
From Lacuna Sustainable Investments.
#2 — Why Deploying Climate Tech at Scale Is So Hard
From RMI.
On a related note, the good folks at Schmidt Futures and PRIME Coalition are working on this climate “technology to infrastructure,” too.
If you know of others, drop me an email for future shout outs in ZERO. (You can reply to this newsletter to reach me.)
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* This version of FOAK should not be confused with the other meaning: Flip Out And Kill someone. As in, “what ninjas do when provoked.” Thank you, Urban Dictionary.
Climate investment news worth seeing in the last few weeks.
Climate Change Threatens U.S. Banks Far More than They’re Disclosing (CNBC)
— “All six of the largest banks in the U.S. — Bank of America, JPMorgan Chase, Citi, Morgan Stanley, Goldman Sachs, and Wells Fargo — face above-average loan risk related to climate change, according to new research from Ceres. Lending linked to fossil fuels and energy transition could translate into more than $100 billion in losses for U.S. banks and systemic financial risk.”
Vistra Accelerates Pivot to Invest in Clean Energy and Combat Climate Change (Columbus Chamber of Commerce)
— With 39 GW of power generation, they are one of many conventional power producers seeing the writing on the wall. So far, they have $850M committed to big solar and storage assets, including the world’s largest battery system.
Climate, Not Elections, Will Move Markets Soon, Says ESG Pioneer (Bloomberg)
— Amy Domini speaks up after decades leading the SRI (not ESG) movement. In terms of standing, her Domini Impact Investments’ currently manages $2.3B of assets that are often beating benchmarks.
GM to Invest $2 Billion to Build Electric Vehicles in Tennessee (The Hill)
— This is part of GM’s commitment to produce 20 new electric vehicle models by 2023, including the recently announced (gasp) electric Hummer. (Is anyone humming Alanis Morissette’s 1996 song Ironic? If not, here’s the tune to get you started.)
Tackling Climate Change Seemed Expensive. Then COVID Happened. (Grist)
— “If just 12% of the currently pledged $12T in COVID-19 stimulus funding were spent every year through 2024 on low-carbon energy investments and reducing our dependence on fossil fuels, that would be enough to limit global warming to 1.5 degrees C (2.7 degrees F), the Paris Agreement’s most ambitious climate target.”
A climate film to watch: Regenerative agriculture.
Narrated by Woody Harrelson, this documentary “sheds light on an new, old approach to farming called “regenerative agriculture” that has the potential to balance our climate, replenish our vast water supplies, and feed the world.”
Even as someone pretty steeped in climate science, I learned a lot and got inspired to pay more attention to the power of regenerative agriculture to address climate change.
And my kids, who were forced to watch as part of our “Documentary Sundays” (woo-hoo!), also learned something, too. While gardening last weekend, our 9-year-old reminded me of the difference between soil (alive) and dirt (dead) as I planted our Fall annuals. Love it.
Click here to access free resources about how you can be a part of this movement (created by the NGO of the same name).
Quotes worth pondering.
“Despite knowing where they are going, a pilot is off course at least 90% of the time. But with constant feedback and course corrections, the plane arrives where intended.” [paraphrased] - Steven Covey
— The same is true for our personal and business growth. Constant course correction is the norm, not a sign of failure.
“We demand discipline. We expect innovation. The lives of my teammates and the success of our mission depend on me. My training is never complete.” - Navy SEAL Creed
— Michael Jordan took 1,000 shots per day, 6x per week. If you want to “own” an expertise and a market, you can’t sit back and coast after you have some success. That path is about constant improvement.
“If you don’t build your dream, someone else will hire you to help them build theirs.”
- Dhirubhai Ambani, founder, Reliance Industries
— If you’re hearing dramatic and inspiring music playing as you read this quote, stop it right now. This is not about rainbows and unicorns. It’s about taking action instead of dreaming.
“I don’t meditate just one hour on my busiest days. Instead, I meditate two hours because those days are the hardest.” [paraphrased] - Dalai Lama
— This wonderful bald buddha was asked by a reporter how he squeezes in meditation on his most jam-packed days. His answer is almost as hard to understand as the classic Zen koan, “What is the sound of one hand clapping?” Or maybe they’re related: Applause for someone making time to create clarity among chaos?
Books to read: Mo’ money vs. No money.
People are complicated.
And that includes me and my reading list on our recent summer wilderness adventure.
Two of the books that stood in contrast were the following:
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#1 - “Mo’ Money”
I Will Teach You to Be Rich, Second Edition: No Guilt. No Excuses. No BS. Just a 6-Week Program That Works by Ramit Sethi
I know, it sounds like a late night infomercial. But stay with me. This book is a gift I give many of my cousins as they graduate college. It’s a super practical guide to personal finance, with lots of examples and a “not so boring” version of giving finance advice that could otherwise put younger folks to sleep. Something to keep in mind for Christmas presents to the 20- and 30-somethings in your life. But be prepared for their lackluster expressions upon opening the gift. Just let them know that this may be one of the best gifts they ever receive (even if it takes a few years to understand that fact).
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#2 - “No Money”
The Man Who Quit Money by Mark Sundeen
This is a true story about Daniel Suelo giving away all of his worldly possessions in 2000 to live penniless in the canyons near Moab, Utah. As the back cover reads, it’s the 21st century version of Henry David Thoreau’s Walden. But it’s really a story about what it takes to be happy, what’s really important, and what the world’s religions teach about a live well lived. And maybe during these crazy months of isolation and uncertainty, it’s good to be reminded of these things.
TORCH - Our Climate CEO Interview series.
If you’re looking for some uplifting stories about founders building ventures tackling climate change, check out these 9 interviews I’ve done with world changers across the country (and many more in the works, including conversations with CEOs at Checkerspot, Ridepanda, and One Concern).
If you’re a CEO or Founder who would like to apply to be interviewed, email us here:
team@entrepreneursforimpact.com
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El fin.
Oh yeah, don’t forget to vote on Tuesday (if you haven’t already).
And if you’re so inspired, there’s still time to help get out the vote with text banking, phone banking, volunteering at polls, etc. I’ve still got three shifts in the next five days. Come join me!
Keep on fightin’ the good fight y’all.
Cheers,
Chris
P.S. If you’re curious about where the name ZERO comes from, check it out here.
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Dr. Chris Wedding
Entrepreneurs for Impact, Founder
Executive Masterminds for entrepreneurs and investors tackling climate change
Invite-only peer groups. Executive coaching. Investor data. Leadership development.
(919) 274-7988
