Climate investor Saloni Multani discusses the macroeconomic dynamics of clean energy infrastructure and why low-cost capital is essential for replacing legacy assets.
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“Climate is at its core a capital stock turnover problem where we need to deploy Ultimately, pretty low-cost capital. The corpus of it needs to be in order to turn over our brown infrastructure and make it green.”
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More from Saloni Multani
Opinion
Multani: Climate tech was not uniquely overextended during the bull market
“I think what I'd say is I don't want to tag us in the climate tech ecosystem as being sort of uniquely guilty of getting out over our skis.”
Saloni MultaniJun 22, 2022▶ 14:20Catalyst: Will the bear market hurt clean energy?
Opinion
Multani: Rising offtake prices cushion clean energy infrastructure from rate hikes
“The reason why I think the impact won't be as big is as you think about the contracts that get struck, right? It's a function of your ultimate spread is a function of your offtake minus your input costs. And so, and one of your input costs is going to be cost …”
Saloni MultaniJun 22, 2022▶ 32:34Catalyst: Will the bear market hurt clean energy?
AssertionNot checkable as stated
Multani: Pre-revenue climate startups raised public money at very low capital costs
“There was clearly a appetite for
You know, just the supply-demand drove the cost of capital for some of these growth companies, these early-stage companies that might be pre-revenue, certainly
Pre-cash flow.
They were able to raise money to fund those cash flo…”
Saloni MultaniJun 22, 2022▶ 12:09Catalyst: Will the bear market hurt clean energy?
AssertionSupported
Multani: ESG fund flows are proving more resilient than conventional flows
“The ESG fund flows, the ones that can go back and forth, have actually been more resilient. Look, everything is down, right, but have been more resilient than conventional fund flows.”
Saloni MultaniJun 22, 2022▶ 20:40Catalyst: Will the bear market hurt clean energy?
PredictionNot checkable as stated
Multani: Corporate willingness to voluntarily pay green premiums will get tested
“The appetite to spend to internalize an externality that you're not forced to through some regulatory regime, right, inevitably through some policy regime, I think will absolutely get tested.”
Saloni MultaniJun 22, 2022▶ 26:55Catalyst: Will the bear market hurt clean energy?
AssertionSupported
Multani: Over 600 SPACs raised in 2021 included substantial climate focus
“There were like over 600 SPACs raised in twenty-twenty-one. It was, you know, a good chunk of them were climate tech related.”
Saloni MultaniJun 22, 2022▶ 8:50Catalyst: Will the bear market hurt clean energy?
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