3 Aug. 2023
On his first day in office, President Joe Biden released several climate-related executive orders, signaling the beginning of his promised change in the U.S. governmental agenda. The U.S. is falling in line with several other countries to focus on repairing the global climate crisis. The solution, as it usually does, lies in technological innovations, dubbed “Climate Tech” by today’s investors. So what is it?
Put simply, Climate Tech is the term to describe technological solutions designed to alleviate the climate crisis. PWC defines climate technology solutions as solutions that tackle the challenge of decarbonising the global economy, with the aim of reaching net zero emissions before 2050. Climate technologies usually exist at the intersection of clean tech, prop tech, and energy tech.
Climate change is at the forefront of the global agenda. By 2030, Britain has pledged to cut their carbon emissions down 68% and China has pledged 60%. The cost of climate change for governments is growing, and their policies are adjusting accordingly. This change in priorities is reflected in the investment market.
Leon Saunders Calvert, head of research and portfolio management at London Stock Exchange Group, argues that in 2021, banks will be taking into account your business’s carbon footprint when determining company loaning. New York state alone has $5 billion dollars set aside for NYSERDA, their clean energy program. Investors, both governmental and private, are looking for technology that reckons with the changing climate.
The term acts as an umbrella to cover technology that transitions the energy supply to renewable sources, promotes zero-emissions transportation, reduces the impact of buildings and other infrastructure, cultivates sustainable land use, or decarbonizes industrial processes.
For your business, a climate technology investment could present as a wide variety of services: an energy efficiency solution for building air conditioning, automated financial analysis on the risk of a natural disaster, or renewable energy generation and storage.
Climate Technology racked up $60 billion in private investments in 2019. The Earth is changing, and sustainability is crucial to the future of your business, regardless of the industry.
Reach out to our Indoor Climate Experts to find out what a Climate Intelligence solution can do for your business’s carbon footprint today!