Why Agile Funding is Key to Scaling SDG and Clean-Technology Projects Quickly

“Agile” appears seemingly everywhere in business today. We have agile project management, agile methodology, agile budgeting – and agile funding. In any area, “agile” describes a mindset centered around remaining flexible to obtain the best results possible. Adopting an attitude of flexibility encourages and embraces change, rather than resisting and struggling with it.

In this way, agile funding is about businesses taking a flexible approach to using funds. It’s about making choices on what projects and initiatives to fund based on changing market needs and the economy. It lets companies direct funding to areas that are prime for generating results, versus adhering to pre-set budgets and plans.

Agile funding makes sense for many types of projects, but those that are designed to meet Sustainable Development Goals (SDGs) and implement clean technology may be at the top of the list. Here are six key reasons why.

1. Long-term impact
   The ultimate goal of agile funding is results – not just short-run, but over the long run. This aligns well with SDGs, where the goal is long-lasting impact. Developed by the U.N. General Assembly, SDGs are a collection of 17 interlinked global goals
   designed to serve as “a shared blueprint for peace and prosperity, for people and the planet, now and into the future.”
2. Flexibility
   Agile funding means that a business can allocate funds throughout a project’s lifecycle, based on progress, performance and need. In contrast to traditional funding, where an allocation is made at a project’s onset, agile funding allows a business to monitor project progress and adjust financing as needed. If progress is positive, more funds can be added; if the project is not working as intended, funds can be diverted.
   
   This flexibility is particularly appropriate for SDG and clean-technology projects, which are dependent on fast-changing technology and market needs, and at times, government support. Innovation is nearly constant in clean tech, and companies must be in a position to leverage that innovation. With agile funding, they can fund innovation without typical constraints of unyielding funding cycles.
3. Faster decision-making
   With the rapid pace of innovation inherent in clean technology, companies must be able to quickly make decisions on what projects to pursue and which to leave. Agile funding removes the timeframes and delays that often come with traditional budgeting and funding processes. As a result, companies can make needed decisions faster.
4. Responsiveness to market conditions
   Companies have definitive timelines for meeting SDGs – timelines that management, employees, customers, board members and all stakeholders look to. With agile funding, they can be more responsive to changing market conditions and to the pace of innovation in order to meet those timelines. Especially with clean technology, characterized by continual change and innovation, agile funding allows for speedy deployment of capital. Companies can move quickly, shift resources where necessary and market test new developments.
5. Customization
   Agile funding lends itself to customization in financing programs. Just as clean-technology programs and other projects to meet SDGs can take many forms, so can (and should) the financing solutions that make them come to life. SDG-focused and clean-tech projects often require going beyond SDG loans or traditional leases, and look to creative, tailored financing programs.
   
   Power purchase agreements, government-sponsored retrofit loan programs and as-a-service (such as energy-as-a-service, electrification-as-a-service and charging-as-a-service) are among the types of financing programs that can work to scale projects. A strong financing provider that understands companies’ unique business models can create individualized solutions that help facilitate – and accelerate – SDG and clean-technology programs.
6. Encourages collaboration
   The growing and evolving world of SDGs and clean technology requires close cooperation between a wide variety of experts. Agile funding eases collaboration with integrated teams of partners, such as project designers, developers, investors, owners, operators and government-program specialists.

Demand to scale SDG, clean-tech projects

Projects to achieve SDGs and implement clean technology are broad and varied. Electrification of fleets highlights the transportation sector. Manufacturers are turning to digital technologies to produce higher-quality goods and lower costs. Water reuse and reclamation, and development of green infrastructure are in high demand. In agriculture, infrastructure is emerging to leverage advanced technology for tracking, monitoring, automating and analyzing farming and ranching operations. And companies in every industry are looking to develop and install renewable-energy and energy-efficient upgrades.

In every one of those scenarios, agile funding can play a key role in scaling SDG and clean-technology projects. Mitsubishi HC Capital America is committed to contributing to advancing the U.N. SDGs through innovative thinking and productive partnerships. Our SDG Group helps companies meet their clean-energy goals through financing, investing and services. Contact us today to learn how we can help with your with SDG-linked project funding.