Shaun Kingsbury, CEO of Just Climate and former leader in UK offshore wind, dives into the complexities of investing in high-emission industries like steel and cement. He discusses how Just Climate bridges the funding gap in climate solutions with innovative financing strategies. Shaun emphasizes the critical balance between profitability and sustainability, highlighting the need for impactful returns. The conversation also touches on the cyclical nature of clean tech investments, balancing short-term challenges with long-term optimism.
Just Climate aims to bridge the funding gap for high-emission industries by providing flexible capital tailored to their specific needs.
Investing in green steel through projects like Stegra illustrates how innovative solutions can decarbonize traditional industries while ensuring profitability.
Deep dives
Decarbonizing the Hard-to-Abate Sector
Decarbonization of high-emission industries is crucial, as these sectors contribute significantly to global emissions yet receive minimal investment. Just Climate, led by Sean Kingsbury, aims to address this gap by providing flexible capital that traditional financing models often overlook. The key challenge lies in aligning the available types of capital, such as venture, growth, and infrastructure, with the needs of capital-intensive projects focused on emissions reduction. By creating tailored investment solutions, Just Climate is working to mobilize funding towards essential industrial solutions that can lead to a meaningful decrease in carbon footprints.
The Journey of Green Steel Production
Investing in green steel represents a significant step in decarbonizing the steel industry, as conventional steel production is a major source of emissions. The example of Stegra showcases a project that integrates hydrogen production and renewable energy, aiming to produce steel in a sustainable manner. Key to this venture is establishing reliable off-take agreements, with customers willing to pay a premium for low-carbon steel to fulfill their own sustainability commitments. This approach exemplifies how targeted investments in innovative technologies can pivot traditional industries towards greener practices, ultimately contributing to broader climate goals.
Market Dynamics and Sustainability Investment
The sustainability investment landscape has faced fluctuations and concerns, drawing parallels to previous clean tech bubbles that have led to significant corrections in the market. Despite challenges, supply chains for low-carbon solutions such as e-mobility and renewable energy continue to evolve, with innovative companies developing essential technologies to mitigate emissions. Kingsbury emphasizes the need for robust investment structures that attract institutional capital, highlighting the importance of profitability alongside climate impact. By focusing on long-term growth rather than short-term market volatility, there is potential for establishing viable investment frameworks that deliver both financial returns and substantial environmental benefits.
Just Climate is a 1.5bnUSD vehicle established by Generation Investment with the mission to invest in the highest impact solutions that can radically reduce or remove emissions. They occupy the “missing middle” between VC and PE-Infra allowing growth, FOAK and deployment. Their positioning comes on the heels of VCs such as Prelude Ventures, Energy Impact Partners or Breakthrough Energy Ventures. Laurent and Gerard invite its co-CIO, Shaun Kingsbury, the “inventor” of North Sea Offshore Wind when he was at the head of UK Green Investment Bank. We talk about the investment thesis and its portfolio. Steel? Cement? Electro-mobility? Gerard discusses the general environment when it comes to Climate Tech (not great) and wonders if the third wave of Green Investment is not hitting a wall after years of exuberance. Shaun concludes that there is no future for climate innovations if they don’t deliver attractive risk-adjusted financial returns. There will be short term bumps, but the long term is bright.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode