As the 2023 United Nations climate conference, COP28, commences with nearly 200 countries participating, recent studies from The Conference Board and Bloomberg Intelligence shed light on a growing trend among companies and investors: an uptick in investments in clean energy and environment-social-governance (ESG) initiatives.
These financial commitments are, in part, a response to market pressures and have been further incentivized by substantial funding opportunities from the federal government. Notably, the Inflation Reduction Act, Infrastructure Investment Act, and the CHIPS and Science Act collectively offer around $3 trillion, with approximately a trillion dedicated to the clean energy sector alone, as highlighted by Dr. Vanessa Chan, Chief Commercialization Officer of the Department of Energy and Director of the Office of Technology Transitions.
In an exclusive interview on the Electric Ladies Podcast, Dr. Chan outlined the various clean energy technologies at the core of these investments, including clean hydrogen, advanced nuclear, virtual power plants, and carbon capture and sequestration. Emphasizing that the commercialization is not the responsibility of a single entity but an entire ecosystem, Dr. Chan underscored the pivotal role of the private sector in driving these initiatives. The overarching aim is to leverage available funds to catalyze private sector action.
The objective behind this surge in investments is to expedite the shift toward a clean energy-driven economy while simultaneously revitalizing and fortifying the country’s infrastructure to enhance support and resilience to climate impacts. The CHIPS and Science Act particularly focuses on bolstering the U.S. manufacturing sector and reshoring key components of the supply chain, informed by lessons learned during the pandemic economic crisis.
Crucially, allocations under these acts align with the Biden Administration’s Justice40 provision, necessitating that 40% of the benefits from an allocation benefit disadvantaged communities. For transparency, Dr. Chan directed stakeholders to liftoff.energy.gov, a platform to track these substantial investments in pursuit of a sustainable and equitable energy future.