Speeding up risk capital allocation to deliver net-zero ambitions

• Published in: Joule Vol. 7; no. 2; pp. 239 - 243
• Main Authors: Greig, Chris, Keto, David, Hobart, Scott, Finch, Benjamin, Winkler, Ryan
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 15.02.2023
• ISSN: 2542-4351; 2542-4351
• DOI: 10.1016/j.joule.2023.01.003

[Display omitted] Chris Greig is the Theodora D. ('78) and William H. Walton III ('74) Senior Research Scientist at the Andlinger Center for Energy and the Environment at Princeton University. His academic career follows 28 years as a senior executive in the energy and industrial sectors, developing large energy and industrial projects throughout the Asia-Pacific. His research focuses on the feasibility and implementation of large-scale energy transitions taking a systems perspective across energy systems analysis, business, social sciences, and policy. He was a principal investigator on Princeton’s recent Net-Zero America study and co-leads similar efforts in Australia and Asia. David Keto is managing principal of SRI Group, a responsible investment consulting firm. Prior roles include chief operating officer for New Tower Trust, the bank trustee for the Multi-Employer Property Trust, a multi-billion-dollar socially responsible real estate fund. Prior to that, he served as chief operating officer for the AFL-CIO Investment Trust Corporation and as general counsel and chief of staff for the AFL-CIO Housing Investment Trust. He also served as undersecretary for the Massachusetts Executive Officer of Economic Affairs and as special counsel to the Boston Redevelopment Authority. He holds degrees from Princeton University and Yale Law School. Scott Hobart is chief investment officer at Mercator Partners, a sustainability-focused asset manager based in Princeton, New Jersey. Mercator invests across public equity markets globally with a focus on identifying sectors and business models that support the urgent need to decarbonize asset-heavy industries. The investment process at Mercator draws heavily on insights from academia and national laboratories. Benjamin Finch is an undergraduate senior in the Department of Electrical and Computer Engineering at Princeton University. Ryan Winkler is an undergraduate junior in the Department of Economics at Princeton University. Global transitions to net-zero greenhouse gas emissions by mid century require allocation of risk capital at an unprecedented speed and scale—the capital needed is expected to top $130 trillion (USD) by 2050. Yet, while the world may seem awash with capital committed to climate-friendly investing, there is a disconnect between the investment protocols of most such capital and the high risk and uncertainty associated with developing and building vast numbers of clean energy and industrial assets.