Now is the time for Australian philanthropy to support clean energy solutions

Danny Kennedy, CEO of New Energy Nexus and a leading global clean energy investment expert, makes a compelling case that it is time to broaden the focus of environmental philanthropy. In this guest blog, he says that while it has traditionally focused on conservation, wildlife and biodiversity, which are important, now is the critical time to invest in renewable energy start-ups at pace if we have any chance of clawing back global warming to 1.5°C.

We have some good news on climate: we’ve started to turn it around. Emissions globally are still hitting heights but not growing as fast because we’re changing our energy systems – both electricity and mobility. We now know the solution to the problem that’s been affecting our atmosphere for decades. The answer is renewable energy. Solar, wind and batteries are spreading quickly, reducing emissions annually and can go faster yet. They are now meeting new energy demands each year and replacing dirty fossil fuels.

This year, emissions from fossil fuels have likely peaked, thanks to leadership from countries such as China. However, while they’ve peaked, they haven’t started to decline because energy demand keeps growing, especially in booming economies in Asia.

Australia has been a great proving ground for renewable energy, particularly with solar panels on rooftops. South Australia is moving fast and aims to be 100% renewable by 2027. China is also surpassing its 2030 goal of installing 1,200 gigawatts of solar and wind power by the end of this year. This reduces the need for coal-fired power in China.

There’s a challenge

But there’s a challenge: we need more entrepreneurs, workers and financiers to keep at it and triple renewables installation rates. At the COP conference in Dubai last December, it was agreed that we need to triple renewable energy installations by 2030. This is a massive increase in work rate. This effort will also help double energy efficiency in the economy.

As we add all this clean energy generation we need to electrify everything we can –stoves, cars, motorbikes, buses and buildings –and even electrify tough sectors like steelmaking and cement production. This is possible with current technology and investment.

However, to achieve it, we need more workers, startups and companies scaling up. We need support for entrepreneurs entering new markets. Groups like Rewiring Australia are making a case for government investment in this future infrastructure, which will be more distributed than last century’s. This includes adopting renewables on rooftops with batteries, electric vehicles and switching from fossil-based appliances to electric ones.

A scheme like ‘HECs for electric households’ could help Australia lead the world in innovation and pay back handsomely. Philanthropists can support organisations working towards this renewable-powered future. Policies from groups like Rewiring Australia create conditions for change, while groups like New Energy Nexus train the startups and workers.

The opportunity for philanthropy

Traditionally, environmental philanthropy has focused on conservation, wildlife and biodiversity. While these are important, the key to solving the climate crisis lies in quickly deploying renewable energy. This means we need to support different kinds of non-profits. Entrepreneur support organisations or incubators that help create and train leaders to build and use solar, wind and batteries fast enough, workforce development organisations and others.

We need to train workers at a speed and scale that private companies and governments haven’t managed yet. We could bring together people to demand better practices and support for these industries. For example, instead of just exporting raw materials for batteries worldwide, we could make those batteries here using our solar and wind energy as a social choice. But there needs to be advocacy and support to make it be done right.

Did you know that every Tesla car uses a battery with 50% of its lithium and 80% of its nickel from Australia? All this material is processed elsewhere. If we used our renewable resources, we could do this work here in a cleaner way. Anthony Albanese’s vision of a future made in Australia should excite philanthropy to invest in renewables and clean economy training, and support organisations like EnergyLab to create the kind of nation we want in the future.

We also need to inspire more people to join the push this better future. The Bridgestone World Solar Challenge, a race every two years from Darwin to Adelaide, has inspired many engineers and founders to create companies that have transformed the automotive sector and vehicle electrification globally. This is a great example of Australian innovation and education, which philanthropists could support to raise awareness and inspire action.

In conclusion, we are on the brink of changing the climate outlook from despair and doom, heading towards 2 or 3 degrees Celsius, to possibly bringing it back to 1.5 degrees to ensure survival. But to do it, we must triple renewable installations this decade. We need a climate solutions movement as powerful as historic social movements that have protected places like Kakadu and the Franklin River in Australia’s environmental movement history.

This requires smart, timely philanthropic investment. The upcoming Conference of Parties or COP that Australia proposes to host in 2026 presents a big opportunity for this sort of strategy. I urge all philanthropists to get behind this climate solutions movement now.

New Energy Nexus (NEX) is a non-profit organisation that strives towards a 100% clean energy economy for 100% of the population in the shortest time possible. NEX supports diverse entrepreneurs with the accelerators, funds, skills and networks they need to thrive. It started in California in 2004 and now operates programs around the world, including Australia. Since 2016, NEX has accelerated more 1,000 startups, supported more 6,000 entrepreneurs and mobilised more than US$1.5 billion in investment. Danny will be speaking at the Philanthropy Australia Conference in Adelaide in August 2024.