Energy and Environment

Video

Climate Change and the Next U.S. President

The next president of the United States will play a critical role in shaping the country's climate policy, deciding whether and how to reduce emissions, while minimizing any impact on economic growth. This video explains the domestic and global challenges. 

See more in United States; Climate Change

Article

Venture Capital and Cleantech: The Wrong Model for Clean Energy Innovation

Author: Varun Sivaram
MIT Energy Initiative

Venture capital (VC) firms spent over $25 billion funding clean energy technology (cleantech) start-ups from 2006 to 2011 and lost over half their money; as a result, funding has dried up in the cleantech sector. In this report, we present the most comprehensive account to date of the cleantech VC boom and bust, aggregating hundreds of investments to calculate the risk/return profile of cleantech, compared with those of medical and software technology investments. The results are stark—cleantech offered VCs a dismal risk/return profile, dragged down by companies developing new materials, chemistries, or processes that never achieved manufacturing scale. We conclude that the VC model is broken for the cleantech sector, which suffers especially from a dearth of large corporations willing to invest in innovation. Fortunately, new public and private capital may be on the way after announcements made at the 2015 Paris Climate Change Summit. If a new and more diverse set of actors avoids the mistakes of the cleantech VC boom and bust, then they may be able to support a new generation of cleantech companies."

See more in Global; Energy and Environment

Op-Ed

New International Energy Forum Focuses on Innovation

Authors: Varun Sivaram and Graham Pugh
The Hill

Last month, energy ministers from around the world gathered in San Francisco for the annual Clean Energy Ministerial (CEM), which for the past seven years has focused on deploying existing clean energy technologies around the world. But for the first time, clean energy innovation was on the gathering’s agenda as well. In a parallel “Mission Innovation” Ministerial (MIM), twenty countries and the European Union — accounting for over 80 percent of the world’s public energy research and development (R&D) funding — committed to collectively double R&D funding to $30 billion by 2021.

See more in Global; Energy Policy; Climate Change