Authors: Sunrit Panda ’25 & Jason Luo ’25
In an enlightening conversation, Amber Mahone GS ’07, a Princeton alumna and managing partner at the environmental consulting firm E3, shared her insights on the critical role of finance in steering the world toward sustainability. As members of the Office of Sustainability and EcoRep leaders at Princeton University, we had the opportunity to explore with Mahone the intricate relationship between financial mechanisms and environmental goals.
Image Credit: E3
Understanding the Finance-Sustainability Nexus
Mahone passionately describes the intersection of finance and sustainability, emphasizing its indispensability by expressing “In order to achieve a more sustainable future, we need money to finance that transition.” She underscores the challenge posed by the initial capital required for clean energy and sustainable solutions. Despite long-term savings and broader societal benefits, these initiatives demand financial backing to transition from a fossil fuel-based economy to a greener future.
Strategic Projects Paving the Way
Mahone’s recent work with the state of California exemplifies practical approaches to sustainability. “I recently supported the state of California in developing their plan … to a net-zero future by 2045,” she shares. This project required a comprehensive evaluation of strategies across the energy sector, focusing on solutions for low-income customers and financing for renewable energy and transmission infrastructure. Her work highlights the complex layers involved in realizing a net-zero emissions target.
Image Credit: Tom Swinnen
State-Level Progress and Comparative Analysis
In discussing the progress of various states towards sustainability, Mahone discussed some other states that share California’s ambitious goals. “Well, New York state is right up there with California. They are neck and neck in terms of ambition,” Mahone acknowledged. Her experience in supporting New York’s scoping plan, alongside other states and universities like Princeton, reflects a growing national movement towards sustainability. “I really see this accelerating in terms of corporations, private institutions and states taking action to fill the void where the federal government hasn’t been able to do much,” Mahone observes, while highlighting a shift in responsibility towards smaller entities.
Global Aspirations for Clean Energy
When asked about her hopes for clean energy globally, Mahone emphasizes the urgency of the situation. “We need to achieve net zero and climate stabilization,” she asserts. It’s more than a hope; it’s an imperative. She acknowledges the challenges, particularly the existing system’s inertia around fossil fuels. “It’s going to take a lot of capital, a lot of policy, a lot of individual actions to make that transition,” Mahone explains, calling for widespread involvement from all societal sectors.
A Personal Path to Bridging Finance and Sustainability
Reflecting on her journey, Mahone credits her undergraduate experiences and her time at the IMF (International Monetary Fund) as formative in her understanding of sustainability’s financial aspects. “I saw how much fossil fuels and the need for fossil fuels drove the future of these companies,” she recalls. Her reading of Daniel Yergin’s “The Prize: The Epic Quest for Oil, Money, and Power” during high school was a turning point, helping her grasp the profound impact of energy on global politics. “If we can change, you know, that narrative, we’ll have a very different world that is hopefully more sustainable,” she reflects.
Conclusion
Amber Mahone’s perspective as a Princeton alumna and environmental consultant offers a unique lens into the complex relationship between finance and sustainability. Her experiences and insights underscore the necessity of innovative financial solutions to support the global transition to a sustainable future. This conversation not only highlights the critical role of finance in environmental efforts but also serves as a call to action for institutions, states, and individuals to contribute to this vital movement.
Read the full interview transcript below:
In your own words, how do you describe the intersection between finance and sustainability (ESG)?
So, in order to achieve a more sustainable future we need money to finance that transition. Clean energy and the more sustainable solutions, they often come with an upfront capital cost. Even if there are savings over the lifetime of the equipment, even if there are long term societal benefits, there’s still an upfront capital cost that requires a financial solution. And so financing is essential to transition us away from a fossil fuel economy to a sustainable future.
What is a project you’ve worked on recently and how did it lead to cleaner energy and a more sustainable future?
I recently supported the state of California in developing their plan, they call it their scoping plan to a net zero future by 2045. And that involved looking across the entire energy economy to evaluate what are the strategies and solutions needed to hit that net zero target. So, there’s a lot that goes into that. But um, coming up with solutions to support low-income customers is part of that transition. Coming up with ways to finance the renewables, finance the transmission, those are all necessary to achieve net zero in California, and that’s something we looked at closely.
I imagine California is pretty robust and they are ahead of many other states in terms of getting to Net Zero carbon emissions. Is that statement true?
Well so, New York state is right up there with California. They are neck in neck in terms of ambition. And, we supported New York in their scoping plan. There’s actually a lot of states that are taking action and a lot of universities as well. And, it’s great to hear that Princeton is a part of that effort. I really see this accelerating in terms of corporations, private institutions, states, taking action to fill the void where the federal government hasn’t been able to do much.
What hopes do you have for clean energy in our global future?
We need to achieve net zero and climate stabilization. It’s not a hope as much as it is an imperative. There are a lot of challenges though to get there, and a big one is the inertia in our existing system around fossil fuels. And, it’s going to take a lot of capital, it’s going to take a lot of policy, it’s going to take a lot of individual actions to make that transition. But it’s every company, it’s every person, it’s every individual has a role to play in that transition. That’s my hope that more people and more companies get involved.
How has your personal journey led you to a career that bridges finance, consulting, and sustainability?
Yeah well I think it started when I was in undergrad. I did a program where I traveled around the world to different countries, and we were spinning sustainable development. And I saw how much fossil fuels and the need for fossil fuels drove the future of these companies. And when I worked at the IMF that was a big theme there as well, just the role of fossil fuels in developing countries’ financial outlook. And so that brought around the idea that the U.S. can play such an important global role in changing that trajectory. So, that’s maybe the other thing I will add actually is when I was in high school I read this book called “The Prize” by Daniel Yergin… It’s excellent, you should check it out if you haven’t seen it. But it’s all about how energy has shaped the history of the world, and that was an ‘aha’ moment for me when I realized, okay, energy is such a power force in global world wars and the shaping of global geopolitics. If we can change, you know, that narrative, we’ll have a very different world that is hopefully more sustainable. You should really read “The Prize.”