Investing in a Sustainable Future: Climate Tech | SALT iConnections Asia

TL;DR

Experts discuss the evolving landscape of climate tech, its regional differences, and the importance of impact measurement in driving sustainable investments.

Transcript

foreign welcome I'm delighted to be talking about one of my passions today climate Tech and uh what we can do about it and so I'll start my name is Helena Wasserman I'll be moderating today I'm a sustainability angel investor myself and I'm the head of business development of top tier impact uh if we can all start by just introducing yourself so we... Read More

Key Insights

• 🧑‍💻 Climate tech venture funding has increased significantly, with sub-sectors like energy, mobility, and alternative proteins gaining attention.
• 😀 Regional differences exist, with the US focusing on breakthrough innovations, Europe driven by policy makers, and Asia facing challenges due to prioritizing economic growth.
• 💨 Adopting existing technologies and addressing real business problems is crucial for driving fast emissions reduction and scaling solutions.
• ❓ Impact measurement is essential but challenging, as defining desired impact and quantifying it accurately remains a complex task.
• 😉 Profitability in climate tech investments is achievable, with existing technologies enabling win-win situations for profitability and climate impact.
• 💚 The energy transition, green hydrogen, and decarbonization of industries like agriculture offer new opportunities in climate tech.

Questions & Answers

Q: How is climate tech defined, and what is its focus in the Asian context?

Climate tech can be defined differently, often viewed as either CSR or transformational technology. In Asia, the focus is on adopting existing technologies for fast emissions reduction and addressing real business problems.

Q: What have been the major changes in the climate tech landscape over the past decade?

Venture funding for climate tech has increased significantly, with sub-sectors such as energy, mobility, and alternative proteins gaining traction. Europe has shown tremendous growth driven by policy makers, while the US leads in breakthrough innovations. Asia's growth in climate tech is expected in the future.

Q: Do climate tech investments require a green premium, or can they be profitable in the short term?

Some climate tech solutions can be profitable in the short term by addressing real business problems and providing cost savings. The perception of a green premium is changing as existing technologies enable win-win situations for profitability and climate impact.

Q: What are the upcoming frontiers in climate tech that investors should pay attention to?

Growing areas of focus in climate tech include the energy transition, green hydrogen, and decarbonizing traditional industries like agriculture and manufacturing. Incentivizing change in fragmented and traditional industries will be crucial for reducing emissions.

Summary & Key Takeaways

• Climate tech has evolved significantly over the past decade, with venture funding increasing 23 times since 2010. Sub-sectors such as energy, mobility, and alternative proteins have seen growth, while decarbonizing industry solutions are an emerging area.

• Climate tech investment differs across regions. The US has a deep ecosystem with a focus on breakthrough innovations, Europe is driven by policy makers, and Asia faces challenges due to the prioritization of economic growth.

• Existing technologies can help address climate challenges by focusing on real business problems. Adoption and scale are key, and incentives can be used to drive change in traditional industries.

• Impact measurement is crucial in climate investing. Defining the desired impact and quantifying it accurately is a challenge, but it is essential for effective decision-making and ensuring investments align with sustainability goals.