IMD OWP22 PostEvent Report

ACTION POINTS

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INVEST TIME If investing your money is too much at this moment, at least invest some of your time to get familiar with the topic. This sector is fascinating! TRY SOME AVAILABLE SOLUTIONS! If your company does emit some greenhouse gases, why not consider using some of the solutions available from one of the many companies already in the field? For start-ups, commercial success is often a good by-product that could be leveraged to obtain capital. STAYONTHE LOOKOUT Many great investment opportunities are hidden in this sector. As Larry Fink, BlackRock CEO, once said: “The next 1,000 unicorns? They’ll be businesses developing green hydrogen, green agriculture, green steel and green cement.”

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RECOMMENDED READING

WHAT IS YOUR SOLUTION? In my view, there could be two alternative non- mutually exclusive solutions to facilitate the financing of these start-ups. 1. The sector is new and too fragmented. We need to develop a more comprehensive end- to-end approach to structure the ecosystem around start-ups. Want to get a glimpse of an interesting approach trying to address this issue? Look at the excellent work done by Third Derivative! 2. Given the risk involved with these start-ups, the set of investors willing to risk their funds is limited. We need to develop new ways to strip and slice the risk of a set of projects to offer a more comprehensive distribution of portfolio returns. This could attract more investors and capital.

THE NET-ZERO CHALLENGE: GLOBAL CLIMATE ACTION AT A CROSSROADS (PART 1) (WEF and Boston Consulting Group, December 11, 2019)

ENERGY TRANSITION INVESTMENT TRENDS 2022 (BloombergNEF, January 2022)

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