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Cleantech Outlook 2022: Momentum Shows No Sign of Slowing Down

Click here to read the previous cleantech outlook.For the past few years, the cleantech sector has been gathering interest from investors as the world turns to green energy sources to fight climate change.Cleantech spans several industry verticals, includ

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Click here to read the previous cleantech outlook.

For the past few years, the cleantech sector has been gathering interest from investors as the world turns to green energy sources to fight climate change.

Cleantech spans several industry verticals, including renewable energy generation, energy storage, energy efficiency, transportation, air and environment, clean industry, water and agriculture.

With 2021 now in full swing, the Investing News Network (INN) spoke to experts and market participants in the cleantech field to discuss their outlook for the industry. Continue reading to learn what they had to say.


Cleantech trends 2021: The year in review


Following an uncertain 2020 that saw the cleantech sector gain traction and stocks perform strongly, in 2021 attention from investors was set on the COVID-19 recovery path. At the end of last year, most experts and market watchers were optimistic, expecting another strong year for the cleantech space.

Speaking with INN about whether his forecast for the sector in 2021 was correct, Yuan-Sheng Yu of Lux Research said the momentum is still there and many of the larger themes predicted for 2021 came to fruition.

“Hydrogen was the big winner,” he said. “There were several multi-billion-dollar investments announced in the space from both the private and public sector.”

The UK officially launched its hydrogen strategy, which has the goal of using hydrogen to provide 20–35 percent of the UK's energy by 2050. It has a focus on blue hydrogen production, transportation and downstream use in the commercial and residential sector.

On the companies’ front, Lotte Chemical committed 4.4 trillion won (US$3.8 billion at the time) to boost South Korea's hydrogen economy and Ineos invested 2 billion euros in electrolyzer manufacturing capacity in Europe.

“A pleasant surprise in 2021 was the continued injection of capital in the startup ecosystem,” Yu said. “While we were expecting the total venture capital (VC) funding to continue to rise from the approximately US$1.5 billion in 2020, we did not see it rocketing up to nearly US$6 billion last year.”

Some key VC rounds that stood out to the expert include crop nutrition-focused Pivot Bio’s US$430 million Series D, bioengineering company Genomatica’s US$118 million Series C and carbon capture solutions company Svante’s US$100 million Series C.

“This is just pure VC funding rounds; many startups also IPO’d and continued to raise funding afterwards as well as more traditional forms of capital raises,” Yu said. “The types of companies also highlights the wide range of technologies being aggressively supported too.”

Cleantech outlook 2022: What’s ahead


Commenting on what he is expecting to see in the new year, Yu said all that has happened in 2020–2021 in the cleantech space will just continue to roll forward in 2022.

“There are really no signs that point to any of this momentum slowing down,” he said. “While supply chain issues will continue to be a factor across all industries, it may have an impact on the more “traditional” cleantech that are scale and face the same supply chain issues as all other sectors — but for the innovators in the space, we don’t see this playing too much of a deterrent.”

One of the key developments for the sector in 2021 was what unfolded at the 2021 United Nations Climate Change Conference (COP26), with the Glasgow Climate Pact expected to accelerate the energy transition and bring along for the ride the various cleantech that will be required to enable it.

A key aspect worth noting from COP26, according to Yu, was the increase in discussions and attention around industrial decarbonization and addressing emissions in the agricultural sector.

“This was a dramatic shift from previous COP events, which typically focuses on cleaning up the electricity mix and transportation,” he said. “This will continue as the world attempts to address the multi-faceted challenge of decarbonization and that no sectors in the global economy will be immune to its impact.”

But change is not only taking place at a government and regulation level, the private sector is also experiencing a transformation.

“Corporate sustainability was more of a buzzword and marketing tool without real action, but today many — but of course not all — companies have made firmer commitments to reaching net-zero carbon emissions and are backing those commitments with investments and partnerships to meet those goals,” Yu said.

However, even though in 2021 several emerging technologies saw encouraging progress, these positive trends need to accelerate rapidly over the current decade to achieve deployment levels in line with a net zero by 2050 trajectory.

“Additions of battery storage capacity jumped by 50 percent last year to their highest ever level, while hydrogen saw a record year for policy action and low-carbon production,” the International Energy Agency says in a recent report. “Momentum behind carbon capture, utilisation and storage has increased in recent years, but its deployment remains far below the level required in a pathway to net zero by mid-century.”

In terms of trends expected in 2022, energy storage, electric vehicles, hydrogen solutions and carbon capture are key areas that will continue to have momentum.

“We should not expect anything less than numerous partnerships, announcements and funding in these four areas,” Yu said.

For Zarko Meseldzija, chief technical officer of lithium-ion battery recycling company American Manganese (TSXV:AMY), 2021 saw his expectations materialize — a higher focus on critical minerals and higher commodity prices.

“(In 2022,) I am expecting a better market on the back of increasing demand for electric vehicles coupled with the demand for critical battery materials,” he said.

One area within cleantech that Lux Research expects to rise in popularity in 2022 is decarbonized heat because of the growing attention around decarbonizing the industry. At the root of the emissions is the need for low- to high-temperature heat, which largely comes from fossil fuel combustion.

“We began to see an uptick in interest in this area towards the end of 2021 and expect that to carry over in 2022 and become more prominent in the discussion,” Yu said. “While it may not be headline grabbing like the other technologies, it will be a key piece to the future of cleantech.”

In terms of renewable energy, additions of renewable power capacity are on track to set yet another annual record in 2021, driven by solar photovoltaic (PV).

“Almost 290 gigawatts (GW) of new renewable power will be commissioned this year, which is 3 percent higher than 2020’s already exceptional growth,” according to the IEA. “Solar PV alone accounts for more than half of all renewable power expansion in 2021, followed by wind and hydropower.”

The agency forecasts the growth of renewable capacity to accelerate in the next five years, accounting for almost 95 percent of the increase in global power capacity through 2026.

“Globally, renewable electricity capacity is forecast to increase by over 60 percent between 2020 and 2026, reaching more than 4,800 GW,” the IEA says. “This is equivalent to the current global power capacity of fossil fuels and nuclear combined.”

Even though another bright year is expected, in 2022 the cleantech space will still have to face quite a few challenges, but the main one continues to be the potential of not living up to expectations.

“When the type of capital that is being invested in the space keeps going up, the expectations also go up,” Yu said. “It is one thing to bring a technology into market, but it is pertinent that a viable business model and the economics of it also works out when competing with the incumbents.”

Unfortunately, the patience for the timeline from investors might not be realistic.

“Many of these technologies may require over 10 years of further development, piloting and industry buy-in before becoming a commercially available solution and that will be a key risk,” Yu said. “If investors run out of patience and the initial capital runs dry, many cleantech startups will end up in the infamous valley of death with an unclear path forward.”

A key catalyst investors should watch out for that most likely will impact the cleantech sector is the shifting of numerous decarbonization pledges and commitments to actionable policies.

“A blanket policy is unlikely, but we’ll start to see various forms and bit-by-bit regulations that will enable the transition,” Yu said. “Those policies will be critical in moving the needle on much of the activity we’ve seen over the last two years.”

Commenting on what type of companies he will be paying attention to, Yu said he is following electrolyzer companies closely.

“Whether it be the larger established firms such as ITM Power (LSE:ITM) or Nel (OSE:NEL), or emerging players looking to bring a novel aspect to electrolyzer technologies, such as Ionomr, H2Pro and Sunfire,” he said.

Don’t forget to follow us @INN_Technology or real time updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: American Manganese is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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Chinese migration to US is nothing new – but the reasons for recent surge at Southern border are

A gloomier economic outlook in China and tightening state control have combined with the influence of social media in encouraging migration.

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Chinese migrants wait for a boat after having walked across the Darien Gap from Colombia to Panama. AP Photo/Natacha Pisarenko

The brief closure of the Darien Gap – a perilous 66-mile jungle journey linking South American and Central America – in February 2024 temporarily halted one of the Western Hemisphere’s busiest migration routes. It also highlighted its importance to a small but growing group of people that depend on that pass to make it to the U.S.: Chinese migrants.

While a record 2.5 million migrants were detained at the United States’ southwestern land border in 2023, only about 37,000 were from China.

I’m a scholar of migration and China. What I find most remarkable in these figures is the speed with which the number of Chinese migrants is growing. Nearly 10 times as many Chinese migrants crossed the southern border in 2023 as in 2022. In December 2023 alone, U.S. Border Patrol officials reported encounters with about 6,000 Chinese migrants, in contrast to the 900 they reported a year earlier in December 2022.

The dramatic uptick is the result of a confluence of factors that range from a slowing Chinese economy and tightening political control by President Xi Jinping to the easy access to online information on Chinese social media about how to make the trip.

Middle-class migrants

Journalists reporting from the border have generalized that Chinese migrants come largely from the self-employed middle class. They are not rich enough to use education or work opportunities as a means of entry, but they can afford to fly across the world.

According to a report from Reuters, in many cases those attempting to make the crossing are small-business owners who saw irreparable damage to their primary or sole source of income due to China’s “zero COVID” policies. The migrants are women, men and, in some cases, children accompanying parents from all over China.

Chinese nationals have long made the journey to the United States seeking economic opportunity or political freedom. Based on recent media interviews with migrants coming by way of South America and the U.S.’s southern border, the increase in numbers seems driven by two factors.

First, the most common path for immigration for Chinese nationals is through a student visa or H1-B visa for skilled workers. But travel restrictions during the early months of the pandemic temporarily stalled migration from China. Immigrant visas are out of reach for many Chinese nationals without family or vocation-based preferences, and tourist visas require a personal interview with a U.S. consulate to gauge the likelihood of the traveler returning to China.

Social media tutorials

Second, with the legal routes for immigration difficult to follow, social media accounts have outlined alternatives for Chinese who feel an urgent need to emigrate. Accounts on Douyin, the TikTok clone available in mainland China, document locations open for visa-free travel by Chinese passport holders. On TikTok itself, migrants could find information on where to cross the border, as well as information about transportation and smugglers, commonly known as “snakeheads,” who are experienced with bringing migrants on the journey north.

With virtual private networks, immigrants can also gather information from U.S. apps such as X, YouTube, Facebook and other sites that are otherwise blocked by Chinese censors.

Inspired by social media posts that both offer practical guides and celebrate the journey, thousands of Chinese migrants have been flying to Ecuador, which allows visa-free travel for Chinese citizens, and then making their way over land to the U.S.-Mexican border.

This journey involves trekking through the Darien Gap, which despite its notoriety as a dangerous crossing has become an increasingly common route for migrants from Venezuela, Colombia and all over the world.

In addition to information about crossing the Darien Gap, these social media posts highlight the best places to cross the border. This has led to a large share of Chinese asylum seekers following the same path to Mexico’s Baja California to cross the border near San Diego.

Chinese migration to US is nothing new

The rapid increase in numbers and the ease of accessing information via social media on their smartphones are new innovations. But there is a longer history of Chinese migration to the U.S. over the southern border – and at the hands of smugglers.

From 1882 to 1943, the United States banned all immigration by male Chinese laborers and most Chinese women. A combination of economic competition and racist concerns about Chinese culture and assimilability ensured that the Chinese would be the first ethnic group to enter the United States illegally.

With legal options for arrival eliminated, some Chinese migrants took advantage of the relative ease of movement between the U.S. and Mexico during those years. While some migrants adopted Mexican names and spoke enough Spanish to pass as migrant workers, others used borrowed identities or paperwork from Chinese people with a right of entry, like U.S.-born citizens. Similarly to what we are seeing today, it was middle- and working-class Chinese who more frequently turned to illegal means. Those with money and education were able to circumvent the law by arriving as students or members of the merchant class, both exceptions to the exclusion law.

Though these Chinese exclusion laws officially ended in 1943, restrictions on migration from Asia continued until Congress revised U.S. immigration law in the Hart-Celler Act in 1965. New priorities for immigrant visas that stressed vocational skills as well as family reunification, alongside then Chinese leader Deng Xiaoping’s policies of “reform and opening,” helped many Chinese migrants make their way legally to the U.S. in the 1980s and 1990s.

Even after the restrictive immigration laws ended, Chinese migrants without the education or family connections often needed for U.S. visas continued to take dangerous routes with the help of “snakeheads.”

One notorious incident occurred in 1993, when a ship called the Golden Venture ran aground near New York, resulting in the drowning deaths of 10 Chinese migrants and the arrest and conviction of the snakeheads attempting to smuggle hundreds of Chinese migrants into the United States.

Existing tensions

Though there is plenty of precedent for Chinese migrants arriving without documentation, Chinese asylum seekers have better odds of success than many of the other migrants making the dangerous journey north.

An estimated 55% of Chinese asylum seekers are successful in making their claims, often citing political oppression and lack of religious freedom in China as motivations. By contrast, only 29% of Venezuelans seeking asylum in the U.S. have their claim granted, and the number is even lower for Colombians, at 19%.

The new halt on the migratory highway from the south has affected thousands of new migrants seeking refuge in the U.S. But the mix of push factors from their home country and encouragement on social media means that Chinese migrants will continue to seek routes to America.

And with both migration and the perceived threat from China likely to be features of the upcoming U.S. election, there is a risk that increased Chinese migration could become politicized, leaning further into existing tensions between Washington and Beijing.

Meredith Oyen does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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Is the National Guard a solution to school violence?

School board members in one Massachusetts district have called for the National Guard to address student misbehavior. Does their request have merit? A…

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Every now and then, an elected official will suggest bringing in the National Guard to deal with violence that seems out of control.

A city council member in Washington suggested doing so in 2023 to combat the city’s rising violence. So did a Pennsylvania representative concerned about violence in Philadelphia in 2022.

In February 2024, officials in Massachusetts requested the National Guard be deployed to a more unexpected location – to a high school.

Brockton High School has been struggling with student fights, drug use and disrespect toward staff. One school staffer said she was trampled by a crowd rushing to see a fight. Many teachers call in sick to work each day, leaving the school understaffed.

As a researcher who studies school discipline, I know Brockton’s situation is part of a national trend of principals and teachers who have been struggling to deal with perceived increases in student misbehavior since the pandemic.

A review of how the National Guard has been deployed to schools in the past shows the guard can provide service to schools in cases of exceptional need. Yet, doing so does not always end well.

How have schools used the National Guard before?

In 1957, the National Guard blocked nine Black students’ attempts to desegregate Central High School in Little Rock, Arkansas. While the governor claimed this was for safety, the National Guard effectively delayed desegregation of the school – as did the mobs of white individuals outside. Ironically, weeks later, the National Guard and the U.S. Army would enforce integration and the safety of the “Little Rock Nine” on orders from President Dwight Eisenhower.

Three men from the mob around Little Rock’s Central High School are driven from the area at bayonet-point by soldiers of the 101st Airborne Division on Sept. 25, 1957. The presence of the troops permitted the nine Black students to enter the school with only minor background incidents. Bettmann via Getty Images

One of the most tragic cases of the National Guard in an educational setting came in 1970 at Kent State University. The National Guard was brought to campus to respond to protests over American involvement in the Vietnam War. The guardsmen fatally shot four students.

In 2012, then-Sen. Barbara Boxer, a Democrat from California, proposed funding to use the National Guard to provide school security in the wake of the Sandy Hook school shooting. The bill was not passed.

More recently, the National Guard filled teacher shortages in New Mexico’s K-12 schools during the quarantines and sickness of the pandemic. While the idea did not catch on nationally, teachers and school personnel in New Mexico generally reported positive experiences.

Can the National Guard address school discipline?

The National Guard’s mission includes responding to domestic emergencies. Members of the guard are part-time service members who maintain civilian lives. Some are students themselves in colleges and universities. Does this mission and training position the National Guard to respond to incidents of student misbehavior and school violence?

On the one hand, New Mexico’s pandemic experience shows the National Guard could be a stopgap to staffing shortages in unusual circumstances. Similarly, the guards’ eventual role in ensuring student safety during school desegregation in Arkansas demonstrates their potential to address exceptional cases in schools, such as racially motivated mob violence. And, of course, many schools have had military personnel teaching and mentoring through Junior ROTC programs for years.

Those seeking to bring the National Guard to Brockton High School have made similar arguments. They note that staffing shortages have contributed to behavior problems.

One school board member stated: “I know that the first thought that comes to mind when you hear ‘National Guard’ is uniform and arms, and that’s not the case. They’re people like us. They’re educated. They’re trained, and we just need their assistance right now. … We need more staff to support our staff and help the students learn (and) have a safe environment.”

Yet, there are reasons to question whether calls for the National Guard are the best way to address school misconduct and behavior. First, the National Guard is a temporary measure that does little to address the underlying causes of student misbehavior and school violence.

Research has shown that students benefit from effective teaching, meaningful and sustained relationships with school personnel and positive school environments. Such educative and supportive environments have been linked to safer schools. National Guard members are not trained as educators or counselors and, as a temporary measure, would not remain in the school to establish durable relationships with students.

What is more, a military presence – particularly if uniformed or armed – may make students feel less welcome at school or escalate situations.

Schools have already seen an increase in militarization. For example, school police departments have gone so far as to acquire grenade launchers and mine-resistant armored vehicles.

Research has found that school police make students more likely to be suspended and to be arrested. Similarly, while a National Guard presence may address misbehavior temporarily, their presence could similarly result in students experiencing punitive or exclusionary responses to behavior.

Students deserve a solution other than the guard

School violence and disruptions are serious problems that can harm students. Unfortunately, schools and educators have increasingly viewed student misbehavior as a problem to be dealt with through suspensions and police involvement.

A number of people – from the NAACP to the local mayor and other members of the school board – have criticized Brockton’s request for the National Guard. Governor Maura Healey has said she will not deploy the guard to the school.

However, the case of Brockton High School points to real needs. Educators there, like in other schools nationally, are facing a tough situation and perceive a lack of support and resources.

Many schools need more teachers and staff. Students need access to mentors and counselors. With these resources, schools can better ensure educators are able to do their jobs without military intervention.

F. Chris Curran has received funding from the US Department of Justice, the Bureau of Justice Assistance, and the American Civil Liberties Union for work on school safety and discipline.

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Rand Paul Teases Senate GOP Leader Run – Musk Says “I Would Support”

Rand Paul Teases Senate GOP Leader Run – Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump…

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Rand Paul Teases Senate GOP Leader Run - Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump into the race to become the next Senate GOP leader, and Elon Musk was quick to support the idea. Republicans must find a successor for periodically malfunctioning Mitch McConnell, who recently announced he'll step down in November, though intending to keep his Senate seat until his term ends in January 2027, when he'd be within weeks of turning 86. 

So far, the announced field consists of two quintessential establishment types: John Cornyn of Texas and John Thune of South Dakota. While John Barrasso's name had been thrown around as one of "The Three Johns" considered top contenders, the Wyoming senator on Tuesday said he'll instead seek the number two slot as party whip. 

Paul used X to tease his potential bid for the position which -- if the GOP takes back the upper chamber in November -- could graduate from Minority Leader to Majority Leader. He started by telling his 5.1 million followers he'd had lots of people asking him about his interest in running...

...then followed up with a poll in which he predictably annihilated Cornyn and Thune, taking a 96% share as of Friday night, with the other two below 2% each. 

Elon Musk was quick to back the idea of Paul as GOP leader, while daring Cornyn and Thune to follow Paul's lead by throwing their names out for consideration by the Twitter-verse X-verse. 

Paul has been a stalwart opponent of security-state mass surveillance, foreign interventionism -- to include shoveling billions of dollars into the proxy war in Ukraine -- and out-of-control spending in general. He demonstrated the latter passion on the Senate floor this week as he ridiculed the latest kick-the-can spending package:   

In February, Paul used Senate rules to force his colleagues into a grueling Super Bowl weekend of votes, as he worked to derail a $95 billion foreign aid bill. "I think we should stay here as long as it takes,” said Paul. “If it takes a week or a month, I’ll force them to stay here to discuss why they think the border of Ukraine is more important than the US border.”

Don't expect a Majority Leader Paul to ditch the filibuster -- he's been a hardy user of the legislative delay tactic. In 2013, he spoke for 13 hours to fight the nomination of John Brennan as CIA director. In 2015, he orated for 10-and-a-half-hours to oppose extension of the Patriot Act

Rand Paul amid his 10 1/2 hour filibuster in 2015

Among the general public, Paul is probably best known as Capitol Hill's chief tormentor of Dr. Anthony Fauci, who was director of the National Institute of Allergy and Infectious Disease during the Covid-19 pandemic. Paul says the evidence indicates the virus emerged from China's Wuhan Institute of Virology. He's accused Fauci and other members of the US government public health apparatus of evading questions about their funding of the Chinese lab's "gain of function" research, which takes natural viruses and morphs them into something more dangerous. Paul has pointedly said that Fauci committed perjury in congressional hearings and that he belongs in jail "without question."   

Musk is neither the only nor the first noteworthy figure to back Paul for party leader. Just hours after McConnell announced his upcoming step-down from leadership, independent 2024 presidential candidate Robert F. Kennedy, Jr voiced his support: 

In a testament to the extent to which the establishment recoils at the libertarian-minded Paul, mainstream media outlets -- which have been quick to report on other developments in the majority leader race -- pretended not to notice that Paul had signaled his interest in the job. More than 24 hours after Paul's test-the-waters tweet-fest began, not a single major outlet had brought it to the attention of their audience. 

That may be his strongest endorsement yet. 

Tyler Durden Sun, 03/10/2024 - 20:25

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