The collapse of Silicon Valley Bank in March seemed to bode ill for the global clean-energy race.
Just as recently enacted U.S. investment packages and the rest of President Joe Biden’s climate dreams were about to take off, the high-tech start-up sector’s bank of choice went bust, and commentators are warning of a looming slowdown in “the transition to clean energy.”
Yet, rather than hampering the clean-energy race, this episode should be a teachable moment. Yes, the initial handwringing over the banking fallout and its implications for climate policy were justified. SVB occupied an important place in the startup sector and it was especially tapped in to clean-tech firms (its website still boasts “over 1,550 prominent clients” among clean-tech and sustainability startups). But if we learn the right lesson here, SVB’s bust may become a godsend.