Issue 157: Bright Spots for Climate Investing
Welcome to Backstory, a weekly newsletter turning global technology shifts into a three-minute read. This week, we’re thinking about renewable energy. – Mary Ames, Director of Strategy
THE BIG TAKE
Bright Spots for Climate Investing
Wind energy is one of the cleanest forms of renewable energy. The primary downside to harvesting energy from wind is that the turbines and other related infrastructure require a heavy initial investment. According to some reports, key wind projects in the United States struggle to find investment to keep their operations afloat and expanding. The plight of America’s wind farms highlights the promise and peril of the global renewable energy sector.
Great investments. Let’s start with the obvious. Renewable energy works best in environments with ample natural resources like sun and wind. You won’t find many large-scale solar energy projects in northern Germany because the sun doesn’t shine like in the southern United States. Given the geographical nature of renewables, it’s vital that investment flows to the areas where clean energy can be produced easily. That means that wind projects in the United States are a brilliant opportunity for global investors looking to get into the renewable energy market.
Smart opportunities. High inflation and soaring interest rates make planned renewable projects in the US that looked like winners several years ago no longer profitable. But those market conditions don’t apply to all investors and countries. Sovereign wealth funds, countries, and individual investors in the Gulf, for example, are ideal candidates to invest in renewable projects worldwide. Such investment is vital for keeping these projects alive and growing. The key remains thinking outside of the box. As we have seen with various Saudi Arabian investments, such as those in green hydrogen projects, when investors move just beyond their comfort zones, magnificent potential (and possible returns) exist.
QUOTE OF THE WEEK
“Joy is an inside job.”
– Lorraine Weiss, writer
CHART OF THE WEEK
This week, we are thinking about work. During the pandemic, employers worldwide, especially in the United States, were concerned about employees “quietly quitting.” It seems those fears aren’t founded anymore.
OUR VIEWS THIS WEEK
Smart Cities and AI: Remember when smart cities were everywhere? Plugged into the Internet of Things and flowing with data, smart cities were meant to be the cities of the future. So what happened? Writing for Technology Integrator magazine, Xische Director of Strategy Mary Ames tracks the evolution of smart cities and why the recent surge in AI capabilities is propelling smart cities back to the frontlines of urban innovation. Read it here.
AI is a public good: Given the power and potential of artificial intelligence (AI) to change the planet for the better, shouldn’t governments have a more significant role in safeguarding the technology? That’s the simple but complex question we investigated in this archived piece in Xische Reports. The development and use of AI technology are crucial for society, and it can’t be left to big tech giants alone. Moreover, the US government (and others like it) are missing an excellent opportunity to use AI for good across the public sector.
SPOTTED ELSEWHERE
One of the hardest problems in physics. According to an astrophysicist in the United States, one of the hardest problems in physics has nothing to do with space. The challenge is how to board a commercial airplane in the most efficient way possible. American carrier United just announced new changes to how it boards airplanes, and now Jason Steffen, an astrophysicist at the University of Nevada, is working on ways to make the process even better. The Wall Street Journal has the full and fascinating story.
Why do we want to stop aging? Our collective desire to reverse the natural aging process continues to ramp up. The latest article detailing the exploits of a select few trying to live forever can be found in the Washington Post. Perhaps the most fascinating aspect of the people profiled is how they use our new abilities to track everything from sleep to calories in their quest to live longer. This begs an important question for all of us. Does all the new data we have about ourselves really help us live healthier lives or merely spike our anxiety levels?
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