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August 25
You made it to Friday.
It's the one-year anniversary of the Inflation Reduction Act this month. TLDR: Public and private investment into clean tech is accelerating, but we need more. Plus, we dive into Adobe's new office tower and take a look at a thread on Hudson Yards' microgrid.
The Fifth Wall Climate Summit at Blueprint is only a few weeks away. Pioneering climate tech. The EV revolution. Unlocking potential of sustainable real estate. These are just some of the ideas that the world’s largest owners and operators of real estate, stakeholders in the energy sector, and leading climate entrepreneurs will discuss. Find out more and get your ticket here.
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The IRA boosts climate tech startups
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Chart via Clean Energy Anniversary Report by Climate Power
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How’s it going: It’s been one year since the Inflation Reduction Act was passed—the largest piece of climate legislation in the U.S. ever.
- To recap: The IRA allocated around $400 billion in federal dollars for clean energy projects.
- It’s estimated that the IRA will lead to greenhouse gas emissions reductions of 1 billion tons in 2030, according to the DOE.
- There’s a battery boom across the country—the IRA tax credits available are projected to cut the total cost of U.S.-manufactured battery cells and packs by one-third. And 91 companies have announced new battery projects totaling $77.7 billion in investments.
- Eight of 25 new projects in clean tech are in semiconductor manufacturing. The others range from sustainable aviation fuel to manufacturing tools for home energy efficiency. All together totaling in 133.38 billion invested.
- Domestic EV production is another top investment. Since the passage of the IRA about 65 new electric vehicle projects totaling 44.1 billion in investments were announced.
What’s more: Private investment into climate tech startups is likely to surpass the government’s funding, according to TechCrunch.
- In the past year more than 270 new clean energy projects were announced with private investment totaling $132 billion. More than half of those funds went to EVs and batteries.
- What startup sectors have seen the biggest impact? Solar, stationary and long duration energy storage, energy transmission, hydrogen energy, carbon capture and sequestration, domestic EV manufacturing, and EV charging.
But we need trillions, not billions. Here’s the big picture: “We need trillions of dollars invested annually in clean energy and climate technologies, and we need that to happen now. And every year going forward,” Fifth Wall cofounder and managing partner Brendan Wallace writes. “We need to deploy all existing solutions, while investing heavily in the rest to bring them down the cost curve.”
For more: The trillions of dollars forgotten when fracking the energy transition
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STORIES WE READ THIS WEEK
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In a new chart from Pew Research, it shows a majority of Americans support prioritizing the development of renewable energy sources.
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Forward-looking statements and opinions as to carbon reduction initiatives and real estate markets or any other matters, as expressed in this presentation, are those of the individual presenters, but are not necessarily the views of Fifth Wall as a firm, and cannot constitute a guarantee of future success or profitable results. As a result, investors should not rely on such forward-looking statements and/or opinions, or on anything else contained in this post, in making their investment decisions. Moreover, certain information contained herein may have been obtained from published and non-published sources prepared by other parties and may not have been updated through the date hereof. While such information is believed to be reliable for the purposes for which it is used herein, Fifth Wall does not assume any responsibility for the accuracy or completeness of such information, and such information has not been independently verified by Fifth Wall. This post speaks as of its publication date, and Fifth Wall undertakes no obligation to update any of the information herein.
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