2009

Our Green Economy Plenary, which was moderated by SJF’s David Kirkpatrick, featured five capital markets leaders who offered a multitude of useful nuggets as we look to invest in the new green economy.  The panelists were: Andrew Kassoy, of B-Lab; Ariane van Buren, of Ceres; Mark Pinsky, of the Opportunity Finance Network; Kathleen Starr of the F.B. Heron Foundation; and Don Shaffer, of RSF Social Finance.

Here are just a few of the points and takeaways from the plenary:

Kassoy noted the need for social and environmental standards in the green marketplace.  He compared such a system to the LEED standards used for environmentally sustainable building practices.

Pinsky offered a glimpse into his group, which is a network of community development financial institutions across the United States.  He said there are 800 such CDFI’s in America today.  “We’re trying to figure out how to do better in the CDFI world,” he said.

Starr said there is a misconception that entities that are doing positive work with social impacts have to lose out financially in some way.  She said that’s certainly not the case.

Shaffer told attendees they should consider ending their bank accounts with organizations like Bank of America and Wells Fargo and invest in credit unions such as Self-Help that are more focused on social benefits.

Van Buren discussed how her organization, Ceres, helps investors and organizations promote sustainability.  She said Ceres works with state treasurers and individual state investment funds.

Panelists also encouraged Summit attendees to visit several Web sites to get more information about capital.  Here are some of those resources: greenforall.org, moreformission.org and missionmarkets.com.

Self-Help Credit Union Founder Martin Eakes received a standing ovation from a packed ballroom of SJF Summit attendees this morning after giving a commanding and inspirational keynote about the need to embrace to trusteeship and sustainability.

Eakes, a national leader in CDFIs and in the fight against predatory lending, said it’s important to be a trustee for the poor and disadvantaged.  He told a story of how a borrower visited him and explained how he had been hoodwinked into making a bad refinancing deal on his mortgage.  He said this case pushed him into starting the Center for Responsible Lending, which is affiliated with Self-Help.

He said it will take some time to get over the mortgage meltdown.  “It’s going to be four or five years before we have a recovery,” he said as he showed a graph to illustrate the housing crisis.

Eakes noted that many subprime loans were designed so they would fail.  He said more than 50 percent of black residential mortgage holders have subprime loans, a problem he called a “walking neutron bomb.”  And he said the effects of this crisis will hurt nearby homes.

“It becomes an infection for the four or five houses around it,” he said. “You end up with this epidemic that becomes a downward spiral.”

He said Self-Help has been trying to get vacant, foreclosed homes back on the market.  Just last week, he said Self-Help sold homes in hard-hit areas for $1,500 a piece.

But Eakes said there is hope that Americans can turn things around.

“I believe that suffering and self sacrifice can heal the corrosion that’s taking hold of this country,” he said.

As he closed, Eakes neatly wrapped up his message against predatory lenders with this call: “While it is true that we love our enemies, sometimes we have to stop them first.”

Janet Cowell, NC state treasurer, kicked off the second day of the SJF Summit by reminding attendees that the Old North State is in a good place to tap into the emerging green economy.

“North Carolina’s a state that is well-positioned to take advantage of this movement,” Cowell said.

Cowell, a former SJF employee and state legislator who was elected as North Carolina’s first female treasurer last fall, praised SJF for organizing the Summit and convening a variety of leaders who want to collaborate to create good green jobs.

She called on Summit attendees to offer state government officials feedback to help get the economy flowing again.

“I hope that you can help the government sector identify the barriers and policies that need to be changed,” she said.

At the end of the SJF Summit’s first day, three concurrent sessions took place here at the Durham Convention Center.  Those sessions were a cleantech and green jobs policy and program update, workforce engagement strategies session and a panel on green building and green jobs.  The following blog post will touch on some of the information presented at the cleantech and green jobs policy and program update.  Be sure to come back here to read about the other sessions.

The cleantech and green jobs policy and program update was moderated by Deb Gallagher, with Duke’s Nicholas School of Environment.  Three panelists offered their perspectives on efforts to create green jobs.  Those presenters were: Paul Dickerson, of Haynes and Boone, LLP; Ben Taube, of Southeast Energy Efficiency Alliance; and Melissa Bradley-Burns of nonprofit Green For All.

Discussing the need for funding, Dickerson noted that “capital is the oxygen that cleantech needs.”  He also commented on the proposed “cap and trade” legislation that is meant to lower greenhouse gas output.

“Candidly, I’m not sure we as a nation can handle a run-up in energy prices for what appears to be a minimal displacement of carbon,” he said.

Regarding Department of Energy funding, Dickerson – who used to work for the federal entity – said there is funding available from the department for many “green” initiatives. However, he said there’s currently disagreement about whether efforts should be focused more on regulation, research and development or deployment of technology.

Meanwhile, Tauke, executive director of the Atlanta-based Southeast Energy Efficiency Alliance, gave a summary of how state energy offices are spending the federal funds they are receiving.  He noted that the Obama Administration has poured significantly more funding into the states for energy efficiency and similar initiatives.  For example, he said Georgia received $1 million last year, but this year got $82 million.

States are spending these funds in many different ways.  For example Louisiana is spending $3 million on renewable energy for nonprofits, $40 million to retrofit state facilities and millions more for other projects.

Here in North Carolina, he said $14 million is going to the NC Green Business Fund, $12 million is being put towards small business and industry and other funds are going elsewhere.

From various initiatives, Taube said the job creation figures are very promising.  He said Appalachian states could get about 77,000 new jobs in coming years.

Bradley-Burns continued with success stories from other states.  She said Washington State, for example, measures not only job creation but also the reduction in environmental impact.  And in Massachusetts, she said, the state began a Clean Energy Technology Center and has an alternative energy investment fund that contains $43 million.

She said the recent stimulus legislation allocated $500 million to the Green Jobs Act, a bill that passed under former President George W. Bush.  She said Green For All was instrumental in pushing for that legislation.

Four panelists explained to Summit attendees this afternoon the viability of having zero waste enterprises that make money, promote reuse and ultimately keep significant amounts of materials out of landfills.

The Zero Waste CEO Panel featured leaders of Intechra, Thrift Recycling Management, Salvage Direct and CleanScapes Inc.  Panelists shared interesting anecdotes from their experiences in the green economy.

“Our absolute goal is zero landfill impact,” said Intechra CEO Michael Profit.  Intechra recycles computer-related equipment.

Phil McMullin, of Thrift Recycling Management, discussed how his business resells used books on Internet sites like Amazon.com.  He said TRM has more than two million titles available online and currently sells about 300,000 books per month.

He offered insight into a few of TRM’s approaches.  For instance, he said the company prides itself on excellent employee benefits, which help keep its workers from leaving the business and reduces the need for retraining.  In addition, he said the firm gives away books that do not have tracking numbers and cannot be resold.  To date, TRM has donated 1.8 million of these books.

TRM combines its service mission with a detailed focus on the bottom line.  He said the enterprise has a “scorecard culture” in which employees are frequently updated on the company’s business.

“We are anal about using that report to drive our business,” he said of the scorecard.

Zero waste CEO panel attendees also heard from Dan Hoversten, of Salvage Direct.  The company recycles automobiles and other vehicles that have been totaled and no longer can be used for transportation.

He said Salvage Direct, which began operating in 1998, set up shop in areas hit by storms like Hurricanes Ike and Katrina.  For Katrina, which the Gulf Coast in 2005, he said the enterprise recycled 3,000 vehicles.

Chris Martin, of CleanScapes, performs environmentally sustainable streetscaping and garbage pickup services.

“We’re really trying to address the impacts of a solid-waste system,” Martin said.

He said the company employs practices that reduce its carbon footprint. For instance, CleanScapes puts two people on its garbage trucks.  This policy allows them to put 30 percent fewer trucks out on the streets.

Overall, Martin gave three main suggestions of good business practices: working with government, getting outstanding employees and maintaining focus.

Melissa Bradley-Burns considers green jobs to be tools to rebuild communities, and she’s pursuing this mission with the nonprofit group Green for All.

“We truly see green jobs as an opportunity to lift people out of poverty,” said Bradley-Burns, Tuesday’s lunch keynote speaker at the SJF Summit on the New Green Economy.

Green jobs – which she said should be solid-paying opportunities – should be created in areas with minorities like African-Americans and Native Americans, as well as areas such as Appalachia.  She said these are the areas that need community investment.

Bradley-Burns, who works for Green for All’s capital access initiative, said the current administration is funneling unprecedented resources into sustainable employment opportunities.

“Obama’s stimulus package is the best down payment on creating a new green economy,” she said. “I’m not going to leave this money sitting on the table.”

She encouraged attendees to reach out to new partners.  For example, Bradley-Burns, who spent time in the business world, said she is currently collaborating with two labor unions, the AFL-CIO and the SEIU.

“For us, the opportunities are tremendous,” she said. “This is our time.  Clean energy does mean good-paying jobs.”

For more information on Green for All, visit www.greenforall.org.

This morning we had our first series of concurrent sessions here at the SJF Summit on the New Green Economy.  Attendees could choose from three options: Supporting Green Jobs Growth, Supporting Social and Green Entrepreneurship and Cleantech Investment Outlook.  Here is a brief report from the cleantech session, but check back later for updates from the other panels.

Cleantech Investment Outlook session attendees got diverse perspectives during this morning panel, with representation from an investment bank, an energy technology holding company and a venture fund that invests in brownfields remediation projects.

Mary Bacon, of Ewing Bemiss & Co., said amid the current credit crisis, investment in alternative energy sources has dropped off.  However, she said the federal stimulus will provide many opportunities for green investment.

She said biomass energy is more popular now, whereas “it used to be the stepchild of renewable energy.”  In addition, she said private equity and hedge funds, while more cautious about their investments, still are pouring funds in green energy.

“It’s the right place to be in this current economic time,” she said.

Next, John Moore of Acorn Energy focused on environmental problems as drivers for green investment.

“Wind and solar is the future,” he said. “I hope it’s going to be a huge success. (But) we have to be worried about our present.”

He added that solar power needs to be targeted to areas that will yield “the highest return on investment.”

“I believe we should consider solar a specialty solution,” he said.

Three keys to success, he said, are: to transition from analog to digital technology, harness America’s strengths and use software and silicon infrastructure.

Last, Tom Darden, of Raleigh-based Cherokee Investment Partners, talked about his firm’s efforts to turn around polluted brownfields sites.

Through Cherokee’s work, he said 525 sites have been purchased globally, with the intent of improving local communities that previously had blighted land.

During his presentation, Darden showed an illustration of a triangle with three points: ecology, equity and economy.  He said he’s witnessed a change in which the business world is more concerned with social equity and environmental stewardship.

He said investors are more likely to consider projects that include community benefits, although he noted the difficulties in securing investment in the current economy due to little available funding.

Darden also encouraged people to consider government incentives, while keeping in mind that those funding streams will eventually end.

Later, during a question-and-answer period organized by panel moderator Nicholas Parker of the Cleantech Group, panelists offered differing views on private-public collaborations.

Darden urged attendees to steer clear of the public sector, calling government a “fickle” partner.  But Moore said the private sector should tap into government funding.  “You cannot afford to not have those (government) relationships,” Moore said.

Earlier today, we heard from opening keynote Nicholas Parker.  Here is a post about his inspiring and informative talk:

Nicholas Parker, of Cleantech Group LLC, said there are in excess of 70 jurisdictions globally that say they want to succeed in the new green economy, but there are many barriers to turn visions into realities.

“We’re all green now, but I’m not sure we’ve all fully appreciated how big this challenge is,” said Parker, the Summit’s opening keynote speaker.

During his speech, entitled “Cleantech in an Obama World,” Parker touched on many of these challenges, including the fact that humans are wasteful and are in the midst of a global warming crisis.

“Increasingly, we’re moving into a world of adaptation, whether we like it or not,” Parker said.

The cost is high to move to more sustainable energies.  Parker said a bare minimum of $200 billion a year worldwide will be required to move the globe into a low-carbon economy.  So far, he said about $60 billion has been allocated for green and clean industry from the recent U.S. stimulus package; worldwide, he said that cleantech investment figure is $400 billion.

Parker said the Obama administration has been “a breath of fresh air” for cleantech investment, but he’s concerned how much the federal stimulus will ultimately cost.  He illustrated his point by comparing the cost of job creation: a new job created with federal funding costs $235,000 per job, he said; by contrast, venture capital funding can create employment for $37,000 per job.

Parker said there are many areas for growth in cleantech, including waste minimization, renewable energy and efforts to reduce the chemical pollution that humans intake everyday.

The Cleantech CEO also shared a litany of clean economy “checklist” items that entrepreneurs and others should consider.  Among those are finding long-term price signals, using global branding and working with China.

Want to learn more?  Find out about the Cleantech Group at www.cleantech.com.

A Zero Carbon CEO Panel provided best practices and lessons learned from the burgeoning cleantech sector.  Here are some highlights from each of the four speakers:

Garald Cottrell said the recent change in his business is evidence of the quick speed of the cleantech world. Wellons Energy Solutions Group just this week purchased Cottrell’s Bio-Gen Energy Solutions.

Cottrell’s business uses biomass boilers to produce steam energy.  He said that there were 287 permitted boilers in North Carolina in 2006, but this is a technology that has existed for a century.

“This is not a new technology,” he said.  “All we’re doing is rebranding and repositioning.”

Cottrell said his business has been able to tap into consumer dissatisfaction with growing fossil fuel energy costs.  He said biomass technology can save consumers more 50 percent in yearly fuel costs.

While the burgeoning green movement has many social benefits, he said there must be a strong financial model.

“At the end of the day … it has to achieve financial metrics,” he said.

A Zero Carbon CEO Panel provided best practices and lessons learned from the burgeoning cleantech sector.  Here are some highlights from each of the four speakers:

Michael Shore, of FLS Energy, installs solar hot water infrastructure for hotels, camps and other facilities and businesses that use large amounts of water.  He said solar is in high demand.

“Never do we have somebody that we’re talking to that doesn’t want solar,” he said. “Everybody wants it.”

But Shore, whose business is based in Western North Carolina, said there are several barriers to solar energy implementation.  From the client side, he said there are large upfront expenses, plus potential customers are wary of the risk of new technology.  From the business side, he said there are sometimes difficulties obtaining capital.

Shore said FLS Energy has a simple “solar energy purchase agreement” model, in which an FLS client only pays for the BTUs that they produce with the solar technology on their sites.  Solar technology produce a high-cost savings compared to natural gas, electric and other traditional energy sources, he said.

In terms of lessons learned from his endeavors, Shore said it is important to be “discriminating” and truly target potential customers that are the largest water users.