Climate tech is an umbrella term for technological solutions built to address the climate tech crisis. Examples of climate technologies include solutions built to support decarbonization, energy transition, and emissions reduction.
This page provides an overview of the term climate technology and the importance of climate tech solutions in tackling the climate crisis.
Climate technologies are critical in our fight against climate change. 40% of the cumulative emissions reductions rely on technologies that have not yet been commercially deployed in mass‑market applications, according to a report by IEA. The climate crisis is a multifaceted challenge and tackling it will demand a systemic transformation across nearly every industry and vertical.
Defining climate tech can be tricky, but the EU taxonomy’s policy framework serves as a good foundation. According to the EU taxonomy, climate tech refers to innovative products, services, and technologies that address at least one of the six objectives for sustainable activities. The European Union has developed a framework to classify “green” or “sustainable” economic activities, outlining six environmental objectives:
At Net Zero Insights, we have classified climate tech solutions dependent on what challenges they address. These challenge areas are transversal, accommodating all aspects of the environmental objectives, from avoiding emissions to climate change adaptation. The solutions map below illustrates our classification into 10 different challenge areas namely food and agriculture, emissions control, reporting and offsetting, built environment, energy, transport, water, natural environment, GHG capture, removal and storage, circular economy, and industry.
According to a report by the World Economic Forum, $4-5T of global clean energy investments are required per year by 2030 to avert a climate disaster. This is more than a threefold increase from existing investment levels. Investment in climate tech includes funding for research, infrastructure projects, innovation schemes, and startup funding. The good news: investment in startups has 20x increased in the last decade, with total climate tech funding of $100B in 2022. This is according to data from Net Zero Insight’s market intelligence platform. Where we monitor the funding activity in climate tech.
Even though investments in technology are a critical component for change, technology alone won’t solve the climate tech crisis. Fighting climate change will require a systemic change in regulation, policy, enterprise, and consumer behaviour. For climate tech to be a catalyst of change, we need to build an ecosystem where innovation is supported.
At Net Zero Insights, we help investors discover innovative solutions and technologies that can help us progress in our fight against the climate crisis are driven by the hope that innovation, collaboration, and collective action can forge a path toward a sustainable and resilient future.
Net Zero Insights is a market intelligence platform for the net zero economy. Our platform provides industry leaders with the most comprehensive database of climate tech startups and SMEs globally. Investors, corporates and decision-makers work with us to gain insight into financial and tech trends by accessing data on funding rounds, activity, sectors and technology.
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