We’re rolling along here at Synergy International into the official launch of our Sustainable Energy Growth Fund. Watch this space for all the upcoming details as soon as the Comissão do Mercado de Valores Mobiliários (CMVM) gives us the final green light.
It’s quite an interesting time to be funding a sustainable energy project literally from the ground up. We trust our growing readership (+23% last week) will be aware of the sharp equity losses in US and European bank shares.
Truth is we are in discussions with a syndicate of European banks about their sustainable energy lending programs. These are the type of partners needed to complete a Green Hydrogen development. And we’re not alone in relying upon these partners. Without properly functioning banking system, let’s stop all engines.
Our opinion on the extent of the global bank stock rout is not relevant (Yes, we think it’s overdone!) We’ve been through numerous financial crises, too many to want to remember, name or date.
Our belief is the eco-system for sustainable energy will continue to thrive. Investors and banks are making rational decisions to provide ever-increasing funding to the sector (Reference Bloggers Block #1 for McKinsey’s estimate on capital transfer required to achieve NetZero goals: US$ 9 trillion).
One observable consequence of the Silicon Valley Bank “non bailout” has been a chorus of voices that place the blame for the wipeout on SVB’s “woke” culture. The idea is growing that more attention was given to SVB’s “inclusion agenda” than competent risk and duration management of its US Treasury portfolio.
We hope SVB did a better job on their inclusion, because inadequate duration management cost management, employees, equity and bond holders 40 years of effort to build a franchise and US$ billions. It’s also provided a spark for polarisations and bad ideas.
What merits comment is the idea circulating in the immediate wake of SVB that sustainable investment is somehow inferior to “normal” profit-seeking investment. Just Twitter #wokebank or #esgscam to see for yourself.
We categorically reject this falsehood.
Synergy International is a purely profit seeking enterprise that understands sustainable energy development is a high profit business in an early-development expansion phase. Regulatory tailwinds are almost hurricane-like in favour of our Portugal development.
In simple words, it’s an amazing capitalist opportunity zone.
There is no interest here to deconstruct sustainable energy development through a culture war prism. We unapologetically choose the side of future profits and business development.
We also believe that energy transition is a requirement for prosperous societies and a safer world for our children and grandchildren. That’s not a political statement. We observe the facts of rising temperatures, melting glaciers and ice caps and rising sea levels.
When a house is destroyed in a hurricane, it’s not an event to be viewed through a political spyglass. It’s just a destroyed house that must be rebuilt if it is ever to provide shelter.
Yet no one is rebuilding the Antarctic ice sheet.
This investment pragmatism doesn’t make us woke or even anti-woke, just unapologetically business focused.