In the weeks following November’s COP26 global climate summit and the publication of Ireland’s Climate Action Plan, I spoke to a number of leading sources who are working in the areas of renewables and climate-related businesses.

After analysing the step-change still required to bring the conduct of various state bodies in line with the urgency apparent from scientific reality in Part 1 of this series, it is now time to hear from these entrepreneurs, innovators and investors.

Many of them share similar frustrations about COP26 and Ireland’s climate policies.

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The impact investor

Faye Walsh Drouillard, the founder of Dublin-based early-stage impact investment firm WakeUp Capital, is on her travels when I reach her. She emails some thoughts from Geneva. 

With a €40 million fund, her firm is one of the investors in MagGrow, the Irish crops spray reduction technology company (on whose board she also sits). The fund has three investment themes: Inclusive and accessible services; health equity; and sustainable production and consumption.

As well as pursuing various philanthropic efforts, in the past she has also backed female entrepreneurs as an angel investor.

Having previously worked in various legal and marketing roles in California, Paris, London and Amsterdam, she also co-led an acclaimed social enterprise, the Freedom Writers Foundation, an education charity based around the Freedom Writers film that starred Hilary Swank.

“I think many people were waiting for a silver bullet or magic wand following COP26, and it felt a little more like the world committing to quit smoking by 2050. However, it grabbed international headlines and was top of mind across governments, corporates and other stakeholders like never before.   

“The methane pledge – an initiative led by the US and the EU which aims to curb their emissions by 30 per cent by 2030 – will have direct implications for waste and agriculture, two major sources of the gas.

“The coal phase-down agreement is hopeful, viable, and it’s documented that the top 5 per cent of coal producers are responsible for 73 per cent of emissions, so they are a key target.

“A missed opportunity was a lack of commitment to sustainable agriculture solutions. But it’s difficult to tackle, as the majority of farms globally are smallholdings in emerging markets. That needs urgent attention if we are going to feed the world’s growing population, and also control waste, reduce fertilisers and carbon emissions from tillage, while also improving soil quality. Ireland has an opportunity to play a leading role here, but will we take it? 

“In a perfect world, nations should be responding to the climate emergency with far more urgency. Unlike the pandemic, there is no vaccine to combat climate change.  

“It is not easy to allocate exact responsibility to each nation when we are considering the complex systems such as water, air and food and energy. However, parallel to the vaccine efforts, it is dependent upon wealthier economies to step up and subsidise the nations that are experiencing the worst effects of climate change.   

“PitchBook estimates climate-related technologies will be worth as much as $150 trillion over the next 30 years, so the money is coming – but the questions remain: How will funds like GFANZ be structured? 

“Who will benefit from the innovations? From the financial returns? Will emerging markets be left out? And lastly: who will monitor, regulate and manage the real and material impacts of carbon emission reductions? Whose compensation will be on the line for not meeting the COP26 targets? 

“Ireland is late to the party and has to catch up quickly. However, the recent commitments by the government and the Climate Action Plan are very positive, if ambitious. The challenge is actually putting the policies into action with operational efficiency, financial sustainability and measurable results.   

“Ireland has made strong commitments to create a better ecosystem to foster both sustainable innovation and support existing businesses and infrastructure in their transition to a low-carbon economy. What is missing is the bridge between research and the commercialisation of sustainable and inclusive investment opportunities. 

“This requires purpose-built funds like WakeUp Capital, as well as accelerators, talent and expertise in sustainable energy, waste management, bioeconomy, sustainable foods among many other areas.”

The carbon capture CEO

Pól Ó’Móráin, chief executive of Direct air capture (DAC) “mechanical tree” maker Carbon Collect, speaks to me having recently secured a second tranche of funding for the firm from Enterprise Ireland. 

If it is to make a meaningful impact on global CO2 emissions, the Dublin-headquartered company will need to realise its gigaton-scale ambitions, which are currently focused on the US. Its Department of Energy awarded the business a $2.5 million grant in July for three carbon farms.

“The overarching outcome of COP26 is that the goals of the Paris Agreement remain in place. It is both disappointing and understandable that the final agreement watered down the intent on the use of coal and inefficient fossil fuel subsidies.

“What would have allowed a better outcome and agreement on these points is an economic package and model to address ‘abandonment’ – the effect of winding down and ceasing fossil fuels on extractive communities. 

“The economic cost of doing so appears to have been too high for India and China in particular. But it is not an issue that affects only those countries. This also points to the principles of ‘just transition.’ Greater pre-planning and programme development would have addressed the hurdles and resistances seen in the final negotiations.

“The challenge for generating the same level of urgency and action on climate is that it is not as visible on a global basis as Covid.

“The pandemic has absorbed trillions in economic supports and vaccine development and manufacturing costs. If CO2 emissions were a solid waste and piling up on the streets of Dublin, Cork, Galway and Belfast, we would not idly stand by and allow it to persist and accumulate.

“We need more energy economists in Ireland. The biggest problem with renewable energy is intermittency. We need to be aggressive on energy storage. We and the rest of the world need to do more on synthetic fuels. 

“We also need to align our industrial strategies with the principles of a low-carbon economy. The cumulative gaps in our energy policy demand great bold steps by the government. Biden is doing that in the US right now.

The US Department of Energy avoided DAC for 30 years. They are now playing catch-up. Funding allocations, supports and programs are accelerating and, in many ways, industry and innovators have not been ready. 

“Nonetheless, we see rapid developments on a scale not seen elsewhere around the globe. The Biden administration is putting billions of dollars for the creation of four regional hubs across the US for DAC. 

“Engineering, preparation for mass manufacturing and deploying at scale cannot happen overnight. For our company and others, the support of policymakers over the next year will see increasing interest and focus on DAC. We will see large-scale deployments of it from mid-decade and significant scaling and deployment within the next 10 years.”

The energy storage CEO

Chief executive of Gore Street Capital Alex O’Cinnéide is arguably one of the most seasoned Irish investors in renewables and cleantech. He previously worked for VC funds Paladin and Masdar.

I first met him while attending the World Future Energy Summit in Abu Dhabi in 2010, which I covered for The Irish Times. At the time, he was heading up Masdar’s cleantech investment fund, which was part of Abu Dhabi’s $650 billion sovereign wealth fund.

Masdar incurred substantial losses on US solar panel maker Solyndra when it went bankrupt in 2011, so the south Dublin native – who divides his time between there and London – also bears the scars of having been through the wringer in this sector.

Backed by Ireland’s ISIF, Gore Street today has £300 million of assets under management, with 21 energy storage projects either installed or under construction across the UK and Ireland.

It is evaluating further opportunities in the US, Australia and Europe, as well as its home markets.

“COP26 was, on the whole, a missed opportunity. The overall outcome is that the planet remains on the 2.4 degrees Celsius path. There was some good progress on methane, which is a severe problem, but the language on coal was very disappointing. 

“The commitment to finance seemed to be smoke and mirrors. The developed world’s continued refusal to make good on their financial support for the global south is unethical and must be solved. 

“Another disappointment was the continuation of the idea that the private sector can solve the critical problem of climate change. As the CEO of a crucial investment firm in the world of renewables, I believe we have an essential role to play.

“But this crisis needs to be solved by immense government programmes, and our political leaders need to start putting those in place.

“The role of the ESB in the energy system of Ireland needs to be reassessed and how they are directed for the challenges which are facing our island. We also need to acknowledge that we are failing on our targets for reducing CO2. Renewable energy will not be our saviour, given the considerable effect the farming sector has in terms of methane and CO2 emissions.

“There is a strong commitment by Ireland’s government to decarbonise the energy system, and we are very proud of Gore Street’s role in that. All of our markets face the same challenges of planning and dealing with large monopolistic existing entities that are not necessarily aligned with our goals. 

“We have a very considerable investment programme laid out to take place over the coming years and are looking to further that even more. We are doubling our portfolio year on year, and we believe that will increase, given the need for energy storage to enable renewables and to balance the grid.”

The former government adviser

The Currency’s columnist Ed Brophy, founder of Tyrconnell Strategy and former chief adviser to Minister for Finance Paschal Donohoe, spoke of a sense of disappointment among his own contacts in the renewables industry.

“Ireland’s Climate Action Plan lacked detail and didn’t provide enough signals for business. COP26 was underwhelming and that sense of disappointment was reinforced.

“Looking at specific policies, there’s a concern that the Maritime Area Planning Bill won’t be fit for purpose, given the pace of technological change. What’s delivered could be too inflexible.

“Businesses don’t get a sense that the government understands where they’re coming from. They sense a lack of understanding and a certain amount of complacency about this sector.

“In the background, the FDI environment is changing as well. Ireland needs to play all the cards we have. 

“In offshore wind, Scotland, the Netherlands, Denmark, Norway, Spain, and Portugal are all rivals for inward investment.

“Maybe the government only views this as being about guys who put up solar panels and wind turbines. There’s a sense of a lack of vision about the wider economic opportunity.”

The floating offshore wind energy operations director

When I speak to Val Cummins, she is just back from a meeting in Westminster about the potential for offshore wind in the Celtic Sea. 

She and a number of co-authors had also just won an award for ‘Best Irish-Published Book’ in the An Post book awards for their Coastal Atlas of Ireland.

As director of Simply Blue, and MD of the 1.3GW Emerald Project, she comes across as a remarkably formidable champion of floating offshore wind power.

Simply Blue has signed two agreements with energy giant Shell for offshore wind joint ventures off both the south and west coasts.

“COP26 had the potential to be a game-changer towards decarbonisation. But it’s dangerous to be full of despair. I’d have liked it to go further, but I can see the reality of transitioning.

“Despair isn’t going to get us anywhere. Nor is technology a panacea. A social licence to operate coupled with young people mobilising could be good for a country like ours.

“But Ireland has started very late and there aren’t enough resources within the government or civil service. The ports and local communities in counties like Clare don’t want to lose this opportunity. Ireland needs to seize it.

“But Eirgrid and the Climate Action Plan aren’t looking beyond 5GW of offshore wind by 2030. The east coast can be an enabler for offshore wind. But they need substitutes on the bench as well.

“We risk losing supply chain opportunities. Foundations may be floated over from Wales or somewhere. There’s so much at stake.

“There are many more jurisdictions around the world where there is more certainty: The US, Portugal, Spain, and the UK, to name just a few.

“But we can’t take a linear, reductionist approach. This is the biggest economic opportunity of this generation. But sometimes officials seem to have a mindset where floating offshore wind power is beyond their imagination and horizon.”

The supergrid firm’s chairman and CEO

When I catch up with Eddie O’Connor and John Fitzgerald in their office in the grounds of UCD, O’Connor’s electric Audi SUV is charging in the car park alongside an electric or hybrid BMW. 

Supernode chairman O’Connor was disappointed at the outcome for Africa at COP26. As he did in a recent interview with The Currency, he maintains that some non-corrupt countries there need a Marshall Plan.

The joint US-China declaration in Glasgow urging more definitive action was significant, he says, adding starkly that at the moment, the world is still on track for a 2.4 degrees Celsius increase in temperature.

Fitzgerald, the supergrid technology start-up’s chief executive, previously spent seven years working at the ESB, and then 15 for Eirgrid, so he offers some insight into their thinking and how it relates to Irish climate policy.

He describes how he and O’Connor spent a year organising an innovation day, focused on superconductor technology, to which some of their key staff were invited.

The leading developers of such technologies from the US, Germany and Korea – some of whom have built small urban grids in those countries – discussed and demonstrated how they’d commercialised them.

Their solutions could be useful in an Irish context where there’s a high concentration of large energy users, or the grid is near capacity and can’t take many more new connections. The ESB and Eirgrid attended the event.

However, Fitzgerald shows me the feedback received from the ESB. It said it was satisfied that it has the necessary technology to meet its 2030 targets and beyond.

“We tried to open a dialogue with them in a constructive and helpful way. We weren’t looking to sell them or promote our own technology,” he explains.

“But Ireland is going to fail to meet our targets if we allow the ESB and Eirgrid to dominate energy policy. The government and civil service seem to outsource a lot of thinking about it to them.

“They have absolutely no openness to innovation. The ESB has been coasting for 40 or 50 years. It’s very dangerous to think that they will do what’s necessary so that Ireland can meet its climate targets.

“Semi-states and the civil service are scared shitless of innovation.”

“Semi-states and the civil service are scared shitless of innovation. They’ve been conditioned and institutionalised to be like that.

“There’s a big difference between what’s easy and what’s correct. There’s a big problem with the capacity of the grid, with respect to east coast offshore wind, and the constraint and curtailment of existing onshore wind power. 

“If Ireland is the Saudi Arabia of wind, how is it that we might end up with some of the most expensive electricity in Europe? It will simply be perverse if we don’t realise our potential.

“This is so important that climate and energy policy should be run from within the Department of the Taoiseach, Eddie and I agree.

“Other countries’ prime ministers have a very solid grasp of energy policy and the importance of energy security. But here, there’s very little interest in being the energy minister.

“We’ve got to think bigger, because the Scots, the Norwegians, and numerous other countries are doing so. Even a small country you might not necessarily associate with the industry like Belgium, with its small coastline, has a lot more offshore wind power than we do today.

“Scotland has a more functional ecosystem that’s supportive of a company like Supernode. In Ireland, our sense is that it’s more disjointed.”

The ‘Big Four’ firm’s global head of climate change and renewables

Dubliner Mike Hayes of KPMG was the only person I contacted for this article who attended COP26.

In his role as the firm’s global head of climate change and renewables, he is one of the Irish people with the best visibility on what is coming down the tracks for business where the subject is concerned.

He is also involved in championing an impact investment concept called Net Zero Equity, a means of engaging global citizens in investing in high-risk climate and renewable energy projects in the developing world.

“People are asking the wrong question: Was COP26 a failure or a success? The media contributed to narrowing the focus in that way.

“It was a positive step on the road to net zero and a carbon-neutral economy. Not just the business community were there, but the investor community too. They’re up for this challenge. They see that climate change hurts the value of their investments.

“In the UK, listed companies have to produce their climate transition plans by 2023. Large corporations won’t have a choice much longer. These plans will have to comply with scientific targets.

“We were unrealistic if we thought India and China would phase out coal, but even talking about it is a significant milestone. We will get there, bit by bit. Methane and deforestation targets were significant as well.

“Already we’re talking about how much more we can achieve in Egypt next year. This is an unstoppable momentum.

“Innovation got a major hearing during an initiative of John Kerry’s first movers’ coalition. A global green innovation hub also contributed to that.

“COP26 didn’t get as far as I would have liked in two areas, however. Mark Carney admitted that capital isn’t enthusiastic about investing in the global south. That’s a huge challenge that we need to overcome.

“Also, the island states got loss, damage, adaptation, and resilience on the agenda. But their efforts were not successful.

“For Ireland and renewables, this is a golden age for developers. The market is opening up like I’ve never seen. 

“We need to accelerate the policy agenda in relation to offshore wind. Floating offshore wind is a reality. 

“We need to speed up the granting of leases and planning permission. I know there are moves in the right direction. I hear concerns about resourcing at the policy level, but if it needs more resources, let’s do whatever it takes to make it happen.

“Scotland is leaving no stone unturned in an effort to become a global leader in it. Ireland has to be careful not to be left behind. This is a once-in-a-lifetime opportunity.

“I look at Covid and see the trillions going into Covid supports and vaccines. I’m always saying to others in this sector: ‘Imagine what we could do with that money and drive in relation to addressing the climate crisis.’”

The hydrogen and tree-planting investor

When I call Limerick entrepreneur and philanthropist Declan Murphy, he is on a visit to the UK, driving down the M4, having embarked on some post-lockdown travel from Dubai, where he is based these days.

The founder of a now-defunct organisation called The Ecology Foundation here in Ireland, he previously made money in software.

The Foundation was arguably ahead of its time, in terms of trying to get large corporations to transform how they do business in the face of the climate crisis over a decade ago.

Today he is the founder of NetZero Group, a private impact investment firm, which is involved in pursuing and promoting hydrogen production, tree-planting, carbon capture, and other climate-related ventures, largely focused on the Middle East.

“The media narrative around COP26 was problematic. It focused on demonstrators led by Greta in terms of public interaction with the event. It could have better educated people about the potential technological solutions that can address the climate crisis, and the speed at which they need to happen,” he affirms.

“The logical outcome of what many such protesters seemed to be calling for is an anti-commercial society. It’s basically Zimbabwe. You’re talking about a life expectancy of 45. That’s probably worse for humans than the consequences of the climate crisis, but better for the environment.

“There was also a tendency – perhaps driven by politicians to a certain extent – to focus on the consequences of the climate crisis for island nations and people like the Inuit. But why wasn’t there more of a focus on, say the New York flooding, London needing a new Thames Barrier, and how it’s impossible to insure buildings in European and western coastal locations or cities – even in North Co Dublin – vulnerable to flooding?

“When it comes to Mark Carney’s GFANZ initiative, these giant banks’ approach to selecting technologies to support has been far too negative, and continues to hold back progress. They’re only concerned with the risk to and security of their return, rather than the risk to all our futures that the climate crisis represents without transformational technologies.

“It seemed to be a lot of spin. How dare they suggest that they’re investing or will invest trillions towards such technologies? There’s no way that’s being applied to the kind of solutions we need.

“Everyone has realised that is what has to happen though. That’s no longer in question. It’s now about who will control the energy system of the future. Control that and you’ll control a huge financial return. Do you want that to be big investment banks, in the same way as they have financed fossil fuels?

“When it comes to Ireland, when I first began talking to the largest companies there over a decade ago, they all wanted to find the right solutions. There was no sense that they wanted to greenwash around the problem or anything.

“Ireland is willing, but the technological solutions are slow to come. Its biggest industries – there aren’t too many of them so in a sense that should make it easier, if anything – could make a big difference.

“Agriculture is in a bit of a pickle, admittedly. But that’s an industry that could be somewhere very different right now as well when I think about some of the conversations I had a decade ago about the potential of anaerobic digestion.

“Venture capital investment has let down the cause of climate change. Carbon taxes aren’t pushing change adequately yet. Investors look at costs and readiness.

“A bit more regulation could help force solutions through in some areas. Legislation could push investment decisions over the line when it comes to risk. The financial world needs to shoulder more of the responsibility. Some technologies haven’t been able to respond to its requirements, and that has been a problem.

“Look at what happened with wave and tidal energy. A decade was wasted there. That sector believed that the market would take effect. It needed a massive accelerated investment spend, but instead, its potential was killed rather than having its funding boosted in a way that took away risk.

“With some of these things, some imagination and better systems to provide incentives are needed. One idea is paying forward.

“Imagine your carbon taxes building up to be put towards an electric car or installing solar panels on your roof. It’s about the regulatory environment and reality pushing money towards solution providers.

“Personally, I believe it’s too late to hit the 1.5 degrees below 1990 CO2 level target, but that doesn’t mean we pack up our bags and go home. It’s only going to become more urgent to respond to the climate emergency.

“If you believe the science, we’ll just strengthen weather systems that our society cannot cope with. We’re adding fuel to the fire.”

The mining and energy firm CEO

Speaking to Philip Moynagh late one evening on a Zoom call, he initially strikes an optimistic note, and talks about the challenge of driving political change in the context of the climate crisis, mentioning Barack Obama, Tony Blair, and Joe Biden.

The chief executive of Tengri Energy raised $1 billion for the firm’s mining and energy operations in Mongolia in 2019, and he continues to work in this role. He was previously head of quark manufacturing at Intel.

“How on earth are we supposed to have an educated opinion on global warming? Especially when dark pessimism is easy. It feels almost intuitive to blame our problems on politicians.

“My concern is that if everyone gets down, and everyone explains why it’s shit, then that’s how it’s going to be.

“Or I can choose blind optimism. A particularly easy choice, given that it involves no effort.

“But there is a way to have an educated opinion on global warming. It involves the application of scientific knowledge, the practice of political alignment, and the use of technological innovation.

“Scientific knowledge application has 99 per cent of scientists in agreement. CO2 emissions are pushing global temperatures into a space that hasn’t been experienced on our planet during the million or so years that the human species has existed. We really should stop heating the place.

“Political alignment is slow and painful. Getting 200 people to agree on anything is a big ask. Getting 200 countries aligned is territory for guaranteed frustration. And yet alignment there has been. 

“Most countries have committed to be net-zero CO2 emitters by 2050, with China and Russia in 2060, and India in 2070. 

“As shown on this graph, Paris resulted in progress, and Glasgow has improved on that.

“Technological innovation is where the actual changes occur. Cost-effective alternatives to burning carbon are being rolled out. In particular, the deployment of solar and wind are increasing exponentially. And new technologies are being created, ranging from graphene-based batteries to superconductor power transmission.

“Let’s stop the black and white of public opinion on global warming. Flailing our arms or covering our ears achieves nothing. Listen to the scientists. 
“Vote for politicians who continue to drive alignment on commitments. And let technical innovation and deployment clean up our CO2 problem.”

The undersea robotics firm co-founder

Director of Subsea Micropiles Andrew Parish worries that history may repeat itself when it comes to Ireland’s offshore wind opportunity.

When he was CEO of wave power business Wavebob in 2009, Sweden’s Vattenfall agreed a joint venture with the firm to commercialise wave energy here.

But Parish was still waiting for an acknowledgement from the Department of Energy here by the time the Swedish firm’s patience ran out and it had got permission to trial technology with one of Scotland’s marine energy startups instead.

Seeing Equinor pull out of its venture with the ESB in November made him fear that something similar may happen if Ireland gets it wrong yet again.

“COP26 was one of the better COPs. There are signs of progress on methane and deforestation. The outcome on coal was disappointing.

“There wasn’t explicit recognition of developing countries’ need for finance if they are to change their trajectory from a path that involves fossil fuels.

“Covid has been something that hasn’t yet overwhelmed whole populations, yet look at the trillions we have committed to economic support and vaccines.

“Compare that to how we know for certain that climate change can wipe out whole populations, the worse its effects become. Surely the finance for that is comparatively a drop in the ocean?

“Looking at Ireland’s energy and climate policy, we are very good at saying the right things, but terrible at acting on them.

“Our marine planning framework has taken 10 or 12 years. We need to make sure there’s accountability for the delivery of the Climate Action Plan’s targets. 

“Unfortunately, a feature of our politics tends to be that one government makes a decision, and another is in power by the time it has to be delivered on.

“Ireland could still be the green energy battery of Europe or the Saudi Arabia of offshore wind.

“Our policies and targets have to be business-friendly, and transparent. Business needs certainty, tangible action plans and procedures, and a reasonable timeframe.”