WEBVTT

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We're joined by Jonathan
Hackett. Jonathan, tell me, what

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does BM and what should other
financial services companies be

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doing to encourage the energy
transition?

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Yeah. I think the real challenge
that we have is that the energy

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transition today exists in a
world that is really on

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exception.

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I know it's strange to say I
believe that financial

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technology is the most important
technology in the energy

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transition. But if you look at
the evolution of solar panels as

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an example,

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photovoltaic cells have gotten
better and better. But it's

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truly

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project financing, structured
finance that's accelerated that

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space. And when I think about
the ability to drive the energy

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transition, banks, financial
institutions have a massive role

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in taking the tools that we use
to make the rest of the economy

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accelerate, go faster and faster
every year and apply those to

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the technologies of the energy
transition. And I think if we

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get that right, financial
institutions will play a

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critical role in driving the
energy transition. And what sort

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of financial structures are
having the greatest impact in

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that world?

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It's interesting. I think
there's kind of a bifurcation.

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You've got scaled solutions like
structured finance, like project

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finance, something that allows

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solutions that are better,
solutions that are able to

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provide a benefit to scale up by
taking small equity investments,

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pairing them with large amounts
of debt at a low cost, and align

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those projects to be deployed
over and over and over again. On

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the other side, you've got
really solutions that are

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bespoke, that are extremely
impactful on the adoption of

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technologies. So things that
really look at how you can bring

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together catalytic capital,
things like Breakthrough Energy

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Catalyst, or in the case of
Canada, things like the Canada

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Infrastructure Bank

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alongside traditional capital
and use those to push the

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boundaries of what's possible.
So we see opportunities where

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you work with that catalytic
capital and say, if we're going

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to drive a solution, how do we
drive a greater adoption? How do

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we drive greater decarbonization
when we're doing it, and use

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those learning points to then
drive adoption across the

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broader economy by showing
what's possible. And so if you

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had any advice for financial
leaders who want to drive

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change, what would it be? So I
think one piece is to think

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about

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how you can do

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countered what I just said
things not always on an

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exceptional basis. The reality
is when we look at the energy

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transition, you're talking about
trillions of dollars a year in

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financing that needs to occur.
That's only going to occur if

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people invest in looking at the
real underpinnings of how

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financings happen and change
them. So if you talk to your

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risk team and you talk to how
you measure capital, how you

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measure risk, if you talk to
your compliance team, understand

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where these things are actually
happening, and then really look

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at your business

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strategy and say, how do I take
a change in how I drive that

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business so that these solutions
are in scope. So these solutions

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get the appropriate treatment
that allows us to really

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accelerate them. That's where
you're going to see a bigger

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change versus telling somebody,
hey, try really hard and I'm

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sure something will happen.
Jonathan, thanks for joining us.

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Thanks for having me.

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