Head of U.S. Department of Energy Loan Programs on Being a "Catalyst" for Wall Street and Why the Current Pace of Deployment for Climate Solutions in the United States is "Wholly Unacceptable"
"Too much money and not enough projects" is how the head of the DOE Loan Programs Office characterizes the current pace of deployment for climate-related projects in the United States.
"The pace at which we are deploying climate solutions is wholly unacceptable," says Jigar Shah, director of the U.S. Department of Energy's Loan Programs Office that has more than $40 billion in loans and loan guarantees available to help deploy large-scale energy infrastructure projects in the United States. "The United States is at maybe $200 billion a year of climate change solution deployment annually. That number has to probably be a trillion dollars a year to be able to be on track to [achieve] the goals that the president will be announcing [at the United Nations Climate Change Conference] in Glasgow."
The comments are part of the latest episode in the CERAWeek Conversations series. In a conversation with Atul Arya, IHS (News - Alert) Markit Senior Vice President and Chief Energy Strategist, Shah discusses the role of being a "catalyst" for Wall Street; advancing climate solutions to the trillion-dollar-scale needed to meet carbon goals; and how oil and gas companies can transition to leverage their expertise in subsurface, geology, risk management and safety in other sectors.
Noting that previous DOE loans to Tesla and others created a trillion dollars of equity value in nearly every sector since those loans were made in 2010-2011, Shah says "now we have to find the next set of technologies to do the same thing."
"A lot of what we're doing at the Loan Programs Office is really explaining to people the supply chain of how it works within the government, but then also within industry. There are many industry participants who really don't understand [project finance]," he says.
The complete video is available at: https://ondemand.ceraweek.com/cwc
(Edited slightly for brevity only)
Watch the complete video at: https://ondemand.ceraweek.com/cwc
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CERAWeek Conversations features original interviews and discussion with energy industry leaders, government officials and policymakers, leaders from the technology, financial and industrial communities-and energy technology innovators.
The series is produced by the team responsible for the world's preeminent energy conference, CERAWeek by IHS Markit.
The complete episode library is available at https://ondemand.ceraweek.com/cwc.
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