Editor’s note: Susan Sanford is executive director of the Research Triangle Cleantech Cluster. Emmit Owens of the Cleantech Cluster leadership assisted in writing this blog. If you would like to learn more about some of the innovation and deployment taking place in North Carolina consider attending the Cleantech Innovation Awards tofday at noon.
RESEARCH TRIANGLE PARK – How will a Biden administration combat climate change?
A recent article by Pitchbook imagines potential President-elect Joe Biden’s clean energy policy. James Thorne writes that policies which support incentives versus direct spending may be more effective in supporting cleantech startups. Much of Thorne’s imagining is centered on carbon pricing, but he offers additional market-based strategies outside of cap-and-trade programs that would advance the cleantech industry, support carbon-reduction goals, and contribute to a rebounding, national economy.
- Public-private partnerships provide solutions.
One key strategy is funding public-private partnerships. Funding basic research at universities, requiring the adoption of new technologies, and creating industry partnerships are common models for public-private partnerships (PPP). Here in North Carolina, we have seen these PPP’s take the form of the FREEDM Systems Center, which is modernizing the electric grid; PowerAmerica, which is accelerating the next generation of power electronics for industry leaders like CREE Wolfspeed and ABB; and the NC Biotech Center, which was established with NC General Assembly funding to accelerate life sciences technology-based economic development.
The Research Triangle Cleantech Cluster (RTCC) has benefited from a public-private partnership as well through a competitive EDA grant from the US Department of Commerce. This grant requires private-sector funds to match federal funds. RTCC partnered with Joules Accelerator, the only cleantech accelerator in the Southeastern US, to create a North Carolina Cleantech Corridor between the Charlotte and Research Triangle regions to connect cleantech startups to pilot opportunities across North Carolina.
In the LimeLight: Research Triangle Cleantech Cluster unveils finalists for innovation awards
Southern California provides another example of an effective PPP. The CA state legislature funded the Clean Energy Plan, which allows funds to combat climate change to flow into local governments. The Southern California Energy Innovation Network (SCEIN) was created with these public funds. This PPP provides funding for cleantech startups based in CA and connects those startups to industry for advice and acceleration, and to potential, pilot opportunities.
North Carolina could create its own NCEIN with the breadth of cleantech assets we have in the state. The ingredient that is missing is public funding.
- Federal and state government can subsidize development
Similarly, the Biden—and Cooper administration—might consider subsidizing development.
This year’s COVID-19 pandemic has led to decreased revenue for utilities, cities, and industry.
Dollars earmarked for innovation projects in municipalities have dried up, as governments have repurposed revenue for public services. Utilities are seeing decreased energy consumption and revenue as a function of broad, potentially permanent, work-from-home policies. And the cleantech industry—which sells to governments, utilities, and industry at large—is seeing the pipeline of projects decrease as well. Fewer projects lead to less revenue to support employment. A federal response to the pandemic that provides funding for energy infrastructure, e.g., the American Recovery and Reinvestment Act of 2009 and its role in modernizing the grid, would advance cleantech innovation and adoption.
Subsidizing development would enable new technologies to achieve price competitiveness, startups to commercialize and scale, and existing industry, i.e., employers, to support carbon-reduction and economic-development goals.
“What you want is for the government to create good incentives without picking winners and losers—allowing capitalism to work,” said Patricia Wexler of Starlight Ventures, quoted in the Pitchbook article.
A federal or state program that provides grants or matching funds for development would support cleantech adoption without government taking on the role of picking winners and losers.
While carbon pricing is a key strategy for incenting carbon reduction, a comprehensive plan to address climate change should include public-private partnerships and subsidizing development to strengthen North Carolina’s and our nation’s economic and environmental health.
If you would like to learn more about some of the innovation and deployment taking place in North Carolina consider attending the Cleantech Innovation Awards taking place on December 9 at noon (EST).
