C L I M AT E R E S I L I E N C E
Q&A

2 0 2 0 I M PAC T R E V I E W

Q&A WITH

Pooja Goyal
Co - H ea d of Ca r l y l e’s
I n fra str u c tu re G ro u p

Inside the Impact Review
Letter from Kew & Glenn
Intro from Meg Starr
Impact Themes
Our Impact At Carlyle
GRI Disclosures

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C L I M AT E R E S I L I E N C E
Q&A

Pooja shares perspectives
on the opportunities in the
renewable energy market:role does private infrastructure play inQ What
renewables? Are they driving its developmentin the future?

A

is the Renewable and Sustainable
Q WhoEnergy Team at Carlyle and what do you do?

AWITH

Pooja Goyal
Co-Head of Carlyle’s
Infrastructure Group56

Renewable and Sustainable Energy at Carlyle is a
dedicated team addressing the energy transition
by investing globally in the renewable energy andsustainable resources sector. We seek to invest
in scalable companies or development platforms
with proven track records and robust value
creation plans, primarily in developed countries.

trends are you seeing in theQ What
renewable and sustainable energy market?
Where do the opportunities lie?

AWe believe the energy transition offers a richand diverse environment where we can bothfind attractive opportunities and also respondto the global call to action to tackle climatechange, one of the greatest challenges of the
21st century. Critically, this is an investment area
where we believe profitability and driving positiveenvironmental change aren’t at odds – they actually
are convergent with each other. We see several
sub-themes within the energy transition whichhave interesting characteristics including batteries,
storage, distributed generation and micro grid.

2 0 2 0 I M PAC T R E V I E W

According to the International Energy Agency,
the energy transition is creating a $3-5 trillion
opportunity in renewable energy over the comingdecades. We believe the sector is at an inflection
point, and that private capital investment will be
key to progressing the transition. Private capital‘slong-term orientation and focus on active value
creation make it particularly suited to address
this shift.

are consumers interacting with theQ How
renewable energy sector?

AThe reality is that data is empowering consumers– like in so many other sectors – leading them tohave control over their energy consumption andcosts. This is creating a massive opportunity. Real,tangible data can have a significant impact on
addressing overall demand and reducing waste.
In the next phase of the energy transition, betterdata will empower customers at all layers in ourenergy system.

Inside the Impact Review
Letter from Kew & Glenn
Intro from Meg Starr
Impact Themes
Our Impact At Carlyle
GRI Disclosures

C L I M AT E R E S I L I E N C E
Q&Ashifts are you seeing across geographies
Q Whatwith regard to the renewable energy sector?

are the biggest changes you’reQ Whatseeing in this space?

AA

We’re seeing the United States set up ambitious
renewable energy targets at the state andlocal level. There is also a strong climate
and renewables agenda in Europe, withsignificant support from multiple stakeholders– governments, investors, companies, andthe general public. Subsidy-free projects arebecoming economical across geographies,
but supportive policies are providing
additional tailwinds.

do you think about impact and ESG
Q How
themes in this strategy?

AWITHPooja Goyal
Co-Head of Carlyle’s
Infrastructure Group57

The team’s core investment thesis – driving
economic value creation through the developmentof renewable and sustainable energy – isconvergent with several core impact theses, which
we evaluate during our diligence process andtrack quantitatively over time. These themes map
to a number of the United Nation’s Sustainable
Development Goals, particularly those involving
affordable and clean energy, innovation andinfrastructure, responsible consumption, andclimate action. Importantly, just because thestrategy is focused on core impact themes, ESG
considerations aren’t any less relevant. Issues
such as community engagement, environmental
impact, and others are material dimensionsof how we evaluate and successfully manage
potential investments.

2 0 2 0 I M PAC T R E V I E W

People have been discussing the energy transition
for a long time now, and the main focus of the last 10years has been primarily renewables – specificallywind and solar. Wind and solar have been thedarlings of the energy transition story, and for goodreason. But on their own, they don’t get us anywhere
near making a dent in tackling climate change. Energy
storage can mitigate one of renewable energy’s
largest drawbacks: the inability of wind & solar
photovoltaics to deliver predictable levels of power
to the grid regardless of time of day or weather. The
rapid expansion of storage capacity and plummeting
cost of storage is expected to be a significant
contributor to the long-term viability of renewableenergy. Batteries and storage are some of the unsung
heroes here – creating an investment opportunity
where there is a convergence of attractive returns,
alongside outsize impact given the critical role ofstorage in unlocking the energy transition.

Inside the Impact ReviewQA

What new and exciting investment activities
have you seen in the field?
Relatedly, Electric Vehicles (EVs) are expected
to be cost competitive with internal combustion
engines in the next 5 years, which is an incredible
development. Investments made by the largest
car manufacturers in transitioning their fleets toelectric vehicles are driving these efficiencies ofscale. Given the pace at which EVs are reaching
price parity, the big bottlenecks on EV adoption isactually charging infrastructure. This is the otherunexpected winner. The charging infrastructureis expected to lead to emerging business models
focused on efficiently pricing the usage ofthe infrastructure.

Letter from Kew & Glenn
Intro from Meg Starr
Impact Themes
Our Impact At Carlyle
GRI Disclosures