MCC Green Finance Series Launch

The Manhattan Chamber of Commerce Green Business Committee and NYC ACRE held an event at the Hearst Tower, the first "green" high rise office building completed in New York City.   The event was primarily for networking purposes, bringing together green building architects and contractors, several start-ups incubated by NYC ACRE, representatives from NYSERDA and MCC and others involved and interested in the industry.  This was the launch event of the Green Finance Series, with many to follow monthly.

The New York City Accelerator for a Clean and Renewable Economy (NYC ACRE) is an incubator for clean technology and renewable energy start-up companies that are helping to transition New York City to a low-carbon future.  Its seeded by a four year, $1.5M grant from the New York State Energy and Research Development Authority (NYSERDA).

Two portfolio companies of interest that I met at the event were:

Wind Products LLC - developing Aerocity urban environment wind turbines and associated geo-positioning software

ThinkEco - developing smartplugs that can be remotely controlled and can recognize devices plugged into it

Thoughts & Analysis:

Given NYC is the hub for some of the largest skyscrapers in the world, we should see a proliferation of companies focused on improving energy efficiency in buildings including manufacturers of products such as efficient lights and HVAC components and systems, consultants, architects, and engineering and construction firms.

As policy (local, regional, federal) demands that buildings become more efficient (LEED, other standards?) by a certain point in time, building owners will need to spend the initial capital to meet these standards.  Considering buildings are responsible for 39% of energy use in the United States, this legislation would be welcome by those focused on energy efficiency.  However, those building owners who are over-levered may struggle with potential up-front capital requirements to meet these regulations.  In this case, we may see a heavy turnover of commercial buildings in the NYC area in the coming years.