As we think around making an investment, and you having a billion dollars, let's say, to allocate. And not only that, but across a larger breadth of technologies now, and also smaller assets. That being said, you asked about tooling, and sometimes it feels like there is a hurdle to get into the space, where you need to understand how to do more structured finance and project finance. I think it's still very under-invested, we'll talk to some developers with these projects, and they're like, 'Hey, we still need more capital'. It seems like every other quarter, brand new large funds are trying to chase this space. If you're looking at these growing new markets, we see funds popping up. They're the chance for new types of investors to come in. Those funds have been around for a while, and are very experienced,īut what's really emerging is all these new technologies and these more distributed systems as well. Also, in particular, there's a lot of places for growth in specific segments, right? You have traditional infrastructure investors who have been there from the past, who have been involved and invested in power and utilities, they have been used to invest in not only solar and wind, but the coals or the bridges and the large scale infrastructure assets. So the range of it is really broad, and the market is growing not just from an energy perspective, but from a categories perspective. And when the major categories of analysis include everything from those two, energy efficiency, the three more mature ones to geothermal, anaerobic digesters, and everything within waste, a lot of transportations, electric vehicles, the charters for that.Īnd basically, everything in the law, all of how we interact with food, water, transport, getting ourselves around getting electricity, all these basic commodities, all need their systems, re vitalize and therefore reinvested in to meet this climate transition. If you look back 10 years ago, you think, okay, it's solar investing. So I think one, sustainable infrastructure now is a much broader category. Investors are looking to come into the space, so what opportunities do they have at the moment? It's always lovely to chat with you, and I'd like to start our conversation by getting your thoughts on what the sustainable infrastructure financing ecosystem looks like right now. Hi Amanda, thank you for joining us on today's episode. 12: How do we make investments green, without going into the red? We had a real fun conversation, so let's dive right in. It will be interesting to see how the new Inflation Reduction Act will help on this front, and we are chatting about this today with Amanda Li, Co-Founder and COO of Banyan Infrastructure.īanyan is an investment facilitator for sustainable infrastructure headquartered in San Francisco – a business on a mission to unlock capital for the financing of green infrastructure projects of all sizes in a profitable way.Īmanda has over ten years' experience in engineering for sustainable development, and is passionate about opening financial doors for green infrastructure projects. Increasing efficiencies in areas like solar and energy efficiency while freeing up funding capacity will allow investors to allocate more time towards exploring new areas like green hydrogen and carbon capture. We need tools that enable project financiers to get comfortable with exploring and entering new markets. Project financiers usually take less technical risks on more mature technologies, and when it comes to sustainability, many technologies are new. So demand from investors is growing, but it's not consistent across the board, and connecting it to the supply side remains challenging. Plus, there's the whole ESG debate – no one can deny the surge in demand for ESG funds, which theoretically are supposed to serve as a proxy for sustainable investments, but in practice, that's still to be determined. There is a lot of interest these days, especially considering the recent geopolitical turbulence surrounding energy. When it comes to investing in sustainable projects, there are still many unknowns.
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