We are witnessing a rise in temperature every year, and the adverse effects of climate change are already evident. This has resulted in several wildfires, melting glaciers, and many more. Thousands of lives have already been lost due to such disasters and if the warming continues, it will have a serious negative impact on human development and the ecosystem. The weather will be more extreme, higher health risks, reduced agricultural productivity among others, most probably we will reach the point from where there will be no coming back.
What is Climate Technology?
The United Nations Framework Convention on Climate Change defines climate technology as “any equipment, technique, practical knowledge or skill to reduce greenhouse gas emissions or adapt to climate change.”
The need for climate technologies is more urgent in developing countries. As more industries are setting up for development, most of the future growth in emissions will be from developing countries, and there is a report highlighting that the share of emissions is set to double by 2030. Industrialization is an important part of development, so developing countries need to reduce emission growth without reducing economic growth.
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Financing a Climate Tech startup
Climate tech investment has grown at almost five times the rate of the overall global venture capital market. Though there was a small drop-off in 2019, there was a ten-fold growth in investment that was noticed between 2013 and 2018.
As per the PwC report, around 2,700 unique investors from venture capitalists, corporate VCs, angel investors, philanthropists, and government funds have participated in funding over 1,200 climate tech startups between 2013 and 2019.
Investment levels are growing rapidly from a low base, we see an 84% compounded annual growth rate (CAGR) in total capital deployed. About $59.5 billion of venture capital flowed into startups contributing to tackling the net-zero challenge over this 7 year time period.
Sources: PwC, Dealroom, statista
Startups working to fix climate change with technology
Every individual is trying their hardest to fix climate change. Some are doing it by planting trees, creating awareness amongst people through various ways, while others are using technology for the same. Here is a list of startups working to fix climate change with technology.
Why Climate Tech Funding Is on the Rise Again
We are facing many natural disasters frequently and environmentalists, scientists are continuously warning us and telling us to save the planet from catastrophic climate change and indeed it is humanity’s biggest challenge right now. It is the world's hardest problem and that is why people are thinking that there will be a huge rise in the climate tech industries in the coming days. Get to know why climate tech funding is on the rise in detail.
Climate Technology Centre and Network (CTCN)
The Climate Technology Centre & Network (CTCN) is the operational arm of the UNFCCC Technology Mechanism, hosted by the United Nations Environment Programme (UNEP) and the UN Industrial Development Organization (UNIDO). It works within the sector to plug the accelerated transfer of environmentally sound technologies for low carbon and climate-resilient development at the request of developing countries. CTCN provides technology solutions, capacity building, and advice on policy, legal, and regulatory frameworks tailored to the wants of individual countries.
Below mentioned are the three core services through which CTCN facilitates the transfer of technologies. These are:
It provides services at the request of developing countries to accelerate the transfer of climate technologies.
Creating access to information and knowledge of climate technologies.
Fostering collaboration among climate technology stakeholders via the Centre’s network of regional and sectoral experts from academia, the private sector, and public and research institutions.
Through these services, the CTCN addresses barriers that hinder the development and transfer of climate technologies, and thereby help create an enabling environment for reduced greenhouse gas emissions and climate vulnerability, improved local innovation capacities, and increased investments in climate technology projects. Click here for more information on CTCN.
10 Startups Working to Fix Climate Change With Technology
Climate change is real and we know this, but even after knowing everything, most of us tend to ignore this. Frequent wildfires, melting glaciers, increasing pollution, death of aquatic lives are some of the results of our ignorance. Amidst our ignorance of the increasingly alarmed warnings of scientists, some entrepreneurs are trying to find a solution to this serious issue with the help of technology. Get to know about 10 startups that are working to fix climate change with technology.
We, at OpenGrowth, are continually looking for trending startups in the ecosystem. If you want to know any further information about the startup ecosystem or have any mind-boggling ideas, do refer our other blogs.