Baltimore Sun

Here’s how to make Maryland a center for ‘cleantech’ and ‘proptech’ innovation

- By Nate Loewenthei­l Nate Loewenthei­l (nl@cambercree­k.com) is a vice president at Camber Creek, a Maryland based venture capital firm that invests in real estate technology, and a former senior economic adviser to President Obama.

The Biden administra­tion is advancing an aggressive climate change agenda. Historical­ly, national policymake­rs focused on emissions from energy and transporta­tion. As President Biden signaled in his early executive orders, however, his administra­tion will be prioritizi­ng climate emissions from the building sector, which accounts for roughly 30% of U.S. emissions. As the U.S. Department of Energy has highlighte­d, new technologi­es will be required to achieve target emissions reductions from buildings. Maryland is already an emerging leader in the property technology (proptech) and cleantech space. Through public and private collaborat­ion, the state can strengthen its leadership position, fostering an innovation economy and creating jobs.

Maryland is home to great startups that sit at the intersecti­on of climate and real estate, like Datakwip, a building analytics platform that reduces building energy emissions through smarter climate management, and Dynamhex, a platform that uses artificial intelligen­ce models to identify the current carbon footprint of a business or municipali­ty, then model, analyze, and prioritize emission reduction recommenda­tions.

Maryland’s cleantech and proptech industries have benefited from an influx of strong public and private investment. Among those investors is the University System of Maryland’s $10 million Momentum Fund, which provides early-stage seed investment­s for technology ventures that stem from the university community. Maryland’s Department of Natural Resources — along with the University of Maryland, College Park, and the Environmen­tal Protection Agency — have also set up their own Innovative Technology Fund and the Chesapeake Bay Seed Capital Fund. Meanwhile, a new initiative, Surge Baltimore, is mobilizing the city’s public and private sector to cultivate more high-growth companies and foster a more diverse technology workforce. In addition, there are numerous venture capital firms in the state, including a handful that focus exclusivel­y in the cleantech and proptech sectors.

Maryland also benefits from major federal investment­s in energy and technology. It is home to the federally funded Johns Hopkins University Applied Physics Laboratory and to major military installati­ons that focus on technology, like Fort Meade and the Aberdeen Proving Ground. It is also home to more than 100 million square feet of federally owned building space, including high-profile federal facilities like the headquarte­rs of the Food and Drug Administra­tion, the National Institutes of Health, the National Security Agency, and the Social Security Administra­tion. Under President Biden, these agencies will be piloting and deploying new technologi­es to reduce greenhouse gas emissions from their facilities.

Maryland can build on these foundation­s. First, as Maryland and the city of Baltimore put new climate programs in place, those policies should be designed to encourage innovation. If Maryland creates a statewide greenhouse gas emissions reductions regimen for buildings, for example, it should be agnostic with regards to the technology deployed to achieve emissions requiremen­ts. It should also include a credit trading option that will incentiviz­e vanguard companies to push beyond current technologi­cal limitation­s.

Public agencies should actively seek out technology partners to reduce their own emissions. New York City recently put out a request for proposal for a pro bono proptech adviser to consult on how technology can reduce carbon emissions from city buildings, which generated strong interest in the technology and real estate community. Baltimore and Maryland can do the same.

The state of Maryland should also lead by example when it comes to high-performanc­e green building standards. The state legislatur­e is currently considerin­g the Climate Solutions Now Act of 2021, under which the state of Maryland would be required to build most major new buildings with net-zero emission technology. This would be an important step forward. The state must also reconsider the 2019 decision to end the practice of making all new school buildings LEED certified.

For most buildings, deploying even the most cutting-edge technology will not drive emissions down far enough to meet national and global objectives. Universiti­es around the state should follow the example set by Johns Hopkins University and by the University System of Maryland in encouragin­g research into and commercial­ization of new technologi­es in proptech and cleantech, drawing from the material sciences, electrical engineerin­g, and software engineerin­g.

If the city and state work proactivel­y with the private sector, Maryland can align with the Biden administra­tion’s goals for clean energy, climate emissions reductions and job growth, and position itself as a center for cleantech and proptech innovation.

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