Pratima Rangarajan, CEO of Climate Investment, shared her expertise on the evolving landscape of impact investing in a recent fireside chat. The discussion covered her professional journey, the growth of Climate Investment, and the critical trends shaping the future of climate technologies and decarbonization efforts.

Background and Career: Rangarajan, a chemical engineer by training, has a diverse background in the chemicals and energy industries. She joined Climate Investment in 2017 as its first employee, leading the company to significant achievements in CO2 abatement.

Key Topics Discussed:

Evolution of Climate Investment:

• 2017 vs. 2024: Rangarajan highlighted the dramatic increase in climate capital and the availability of climate technologies since 2017. She noted that while there is more capital today, the deployment of these technologies remains a challenge.
• Impact Achievements: Climate Investment has successfully abated over 95 million tonnes of CO2 equivalent through its portfolio companies.

Capital and Market Dynamics:

• Capital Stack Gaps: The discussion emphasized the need for a full ecosystem of capital, from venture capital to growth equity and infrastructure buyouts, to support climate technologies.
• Investment Focus: Rangarajan pointed out that a significant portion of climate capital is still concentrated on renewables and electric vehicles, which only address a fraction of the overall problem.

Deployment and Adoption of Technologies:

• Challenges in Uptake: The conversation explored the difficulties in deploying new technologies globally and the importance of matching innovators with large infrastructure players.
• Efficiency and Waste Reduction: Rangarajan stressed the potential of efficiency technologies to reduce emissions and costs, highlighting that a large portion of energy produced is currently wasted.

Role of Public and Private Sectors:

• Collaboration: Both sectors need to work together to achieve significant outcomes. Public sector policies and procurement play a crucial role, while the private sector drives innovation and new business models.
• Case Study: The development of the Net Zero Teesside carbon capture and storage hub in the UK was cited as an example of successful public-private collaboration.

Future Aspirations:

• Scaling Impact: Rangarajan’s goal is to significantly increase the impact of Climate Investment, aiming to abate even more CO2 and foster a collaborative ecosystem to achieve larger environmental goals.

Conclusion: The fireside chat with Pratima Rangarajan provided valuable insights into the current state and future of impact investing. Her experience and vision underscore the importance of strategic capital deployment, technological innovation, and collaborative efforts in addressing climate change.

Key Timestamps:

00:08 Introduction
01:19 The Evolution of Climate Investment
01:57 Observing Market Cycles in Climate Investment
02:55 Current Landscape of Climate Capital
03:32 Challenges in Climate Change Mitigation
04:26 The Importance of a Full Capital Stack
05:21 Addressing Gaps in Climate Investment
06:22 Investment Focus and Its Implications
07:36 Deployment of Climate Technologies
09:11 Lessons from Being a First Mover
12:22 The Role of Stakeholders in Climate Action
14:39 Balancing Innovation and Energy Consumption
17:25 Transparency in Climate Investment
20:12 Establishing Metrics for Climate Impact
22:23 Talent Requirements for Climate Change
23:26 Decarbonization of Existing Infrastructure
24:51 Innovation in the Private Sector
25:50 Closing Remarks and Gratitude