Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Technology

The Cool New Landing Spot for D.C. Insiders: Climate Tech

From White House to green VC.

•
Revolving doors.
Heatmap Illustration/Getty Images

Ten years ago, if you were a hotshot senior advisor in the Obama administration, odds are good you exited the revolving door of the White House straight into a job in Big Tech. But there’s a new career trajectory that’s looking pretty good these days: federal government to climate tech. Since the latter Obama years and increasingly with the passage of the Inflation Reduction Act two years ago, former government employees are popping up at some of the most important companies and venture capital firms in the climate ecosystem.

That’s a testament to how far we’ve come since clean tech 1.0 in the 2010s, when Solyndra’s bankruptcy was blowing up headlines and the shale revolution was starting to derail renewable energy investment. As a more durable market started to rise from the ashes, a growing number of industry experts jumped into government to help fuel the revival — and then often back into industry to take advantage of a more favorable policy environment and an increased focus on corporate sustainability.

Alfred Johnson, co-founder and CEO of the tax credit marketplace Crux, told me that after growing up in D.C. but moving to Stanford for college, he was surprised to hear folks in Silicon Valley talking about government and private industry as if they had completely “mismatched objectives.” Prior to starting Crux, Johnson served as deputy chief of staff at the Department of the Treasury, his second stint at the agency during a career that’s taken him from campaigning for Obama to Blackrock, to founding his first startup, Mobilize, a platform that used to recruit volunteers for Democratic Party campaign events and progressive causes.

“The perspective that I’ve always had is that government and the private sector are fundamentally intertwined, and always have been,” Johnson told me. Crux itself demonstrates this public-private synergy: Not only did the IRA unleash an abundance of clean energy tax credits, it also made them much easier to trade — transactions Crux facilitates.

“If our goal is to mobilize trillions of dollars of investment into the clean energy transition,” Varun Sivaram, a senior fellow for energy and climate at the Council on Foreign Relations, told me, “the people holding the reins of power should absolutely not be the people who have never been in an investment committee room making a financial decision on a project.” Prior to his latest gig, Sivaram worked as an executive at Orsted, which he joined after a stint in the White House as the managing director for clean energy and innovation and a senior advisor to John Kerry, the administration’s climate envoy.

“After the IRA, I said, look, we’ve passed this extraordinary legislation. I would now love to help be at a company that can use this amazing public policy and build clean energy as fast as possible,” he told me. At Orsted he helped lead the internal R&D and artificial intelligence teams and founded Orsted Ventures, which has invested in Crux. Sivaram was also on the committee that decided to pull out of two offshore wind projects in New Jersey, resulting in a $4 billion impairment for the company. “I sometimes feel like Forrest Gump. I have had this front row seat to a lot of very important things,” Sivaram told me.

A lot of the recent revolving door activity can also be traced to the renewed vigor of the once-nearly-dormant Loan Programs Office, part of the Department of Energy, which the IRA imbued with $400 billion to guarantee loans to emerging energy technologies. LPO became a political football thanks to Solyndra, which received a loan guarantee from the office of more than $500 million. After Jigar Shah took the helm in 2021, he tripled the agency’s staff, bringing with him a cohort of private industry experts and advisors, many of whom held contract positions for about a year or two before moving back into industry to pursue other ventures in the climate tech and energy world.

Climate tech investment firms have also become a popular landing spot for former government talent. David Danielson, now a managing director at Breakthrough Energy Ventures, co-founded ARPA-E and worked in the Department of Energy in the second Obama administration. Jenny Gao, a vice president at Energy Impact Partners, went there fresh off a position in the DOE’s Office of Technology Transitions. And Clay Dumas, a partner at Lowercarbon Capital, worked in the Obama White House as the chief of staff and a senior advisor for the White House Office of Digital Strategy.

And then there’s Overture, a climate tech VC founded by former Obama staffers, which aims to help climate tech founders take advantage of government programs and navigate regulatory complexity. “In some ways, campaigns are startups — you start small with a big idea,” Michael O’Neil, one of Overture’s co-founders and partners, told me. “We used to say in the White House, How do you make the room bigger? How do you get more minds and more talent involved to make better decisions?” Now they ask the same questions to help founders build out their technologies. Overture announced the close of its first $60 million fund earlier this year.

It’s not just climate-specific companies and investors who are benefiting — big tech companies still attract plenty of former government employees, although the locus of that energy is now concentrated on corporate sustainability and decarbonization efforts. Lisa Jackson, VP of environment, policy, and social initiatives at Apple, served as the Administrator of the Environmental Protection Agency under Obama. Melanie Nakagawa, the chief sustainability officer at Microsoft, previously worked as a climate advisor to Biden’s National Security Council, while Google’s director of climate and energy research, Ali Douraghy, came straight from the DOE.

Tech industry efforts to run operations with clean energy and back emerging climate solutions have also had an undeniably positive impact — most notably Frontier’s commitment to purchasing over $1 billion of carbon removal credits has catalyzed demand in the nascent industry. This initiative, led by the payments platform Stripe and co-founded by Alphabet, Meta, Shopify, and McKinsey, is also powered by a former government employee, Jane Flegal, who worked in the Biden White House as the senior director for industrial emissions.

While it’s true that the traditional off ramps for former government employees remain — the financial sector also still looms large, Sivaram told me — what’s new is that “there’s now actual money in starting your own company, in working at a venture fund,” he said And this, he believes, is how it should be.

“You want people who understand the nuances of the federal government and the IRA in order to effectively run companies that take advantage of the IRA. It is no secret that the government wanted companies to basically take this money. So many of us made this move.”

Blue
🔒

You’ve reached your free article limit

Subscribe to Heatmap News for unlimited access to daily energy and climate coverage.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
AM Briefing

Trade Winds

On Finland’s nuclear waste breakthrough, Israeli fusion, and Lebanese solar

Turbine components.
Heatmap Illustration/Getty Images

Current conditions: Churning off Mexico’s west coast, Tropical Storm Vance is strengthening into the 11th major hurricane to hit the eastern Pacific this year • A magnitude 7 earthquake that struck a remote corner of northeast Tibet killed at least 18 people and injured dozens more • A series of offshore storms in the Atlantic are hammering the East Coast with dangerous swells.


THE TOP FIVE

1. Trump whiffs on tariffs on wind turbine components

President Donald Trump issued a proclamation Thursday declaring that imported wind turbines and their parts “threaten to impair the national security of the United States,” affirming the findings of an investigation the Department of Commerce opened last summer. But the White House stopped short of imposing the tariffs the agency recommended. It’s tempting, of course, to interpret the White House’s decision to punt on tariffs as a concession to win Democratic votes in Congress for the bipartisan infrastructure deal. In keeping with Trump’s famously chaotic negotiating style, the Department of Justice in the past week reopened permitting decisions on two major offshore wind farms while the Pentagon advanced two of the droves of onshore wind projects amid the bureaucratic blockade that has stymied the sector for months.

Keep reading...Show less
Blue
Electric Vehicles

Is There Room for Lucid?

The company is falling into the third-place trap.

Trophies.
Heatmap Illustration/Getty Images

Jason Fenske loved his Lucid. Or at least, the idea of it.

Fenske is the proprietor of the influential Engineering Explained channel on YouTube, which digs into the mechanical minutiae of both combustion and electric vehicles. While he regularly test-drives all sorts of cars, Fenske last year bought himself a Lucid Air, the big, beautiful sedan from the California EV startup.

Keep reading...Show less
Yellow
A data center.
Heatmap Illustration/Getty Images

This is Heatmap Daily, a weekday digest written by our executive editor. Subscribe here.

My colleague Emily Pontecorvo has a fascinating story today about Net Power, an energy and power development company whose technology once seemed key to decarbonizing the country’s electricity grid.

Keep reading...Show less