Four Trends in Green Technology and Venture Capital

General Partner and Managing Director Pegasus Tech Ventures | Head of Startup World Cup (Anis Uzzaman).

As the world grapples with climate change and rising energy prices, green technology is more important than ever. Entrepreneurs will benefit from coming up with green technology business ideas that meet the growing market needs. Investors are increasingly focusing on renewable energy to improve the world and generate positive financial returns. Let’s take a look at the latest trends in green technology and related venture capital investments.

Green investing: stronger than ever

Eco-friendly solutions like electric vehicles and solar power were once considered off-limits, but now they’re entering the mainstream as we work together to fight climate change. This is highlighted in the Climate Tech 2020 report published by PwC Venture capital investment in decarbonization solutions totaled $418 million in 2013. This number reached 16.1 billion US dollars in 2019 and has since increased $87.5 billion has been invested in climate technology Between July 2020 and July 2021, according to the Climate Tech 2021 report. The sector has expanded into areas such as carbon sequestration, agriculture, food waste, renewable energy and decarbonisation of the built environment. The report shows that 14 cents of every VC investment dollar goes to climate technology.

The rise of green energy

As indicated International Energy Agency (IEA) renewable energy is on track to hit a global record in 2022, despite obstacles such as supply chain delays and high costs. Wind, solar and other renewable energy capacity has increased significantly as businesses and governments see the climate benefits. The falling costs of sustainable energy generation help to increase public consumption. There are new technologies that will take longer to enter the mainstream, but I predict a big technological breakthrough in 2023.

Corporate trends

Corporations have developed corporate responsibility initiatives to focus more on sustainability. For example, Google claims to have an eco-routing feature Google Maps has reduced greenhouse gas emissions by over 500,000 tons. Approaches to climate change include guiding consumers to make better choices, decarbonizing their operations and supply chains, and using technology to help businesses and cities determine their carbon footprint.

At the same time, Apple has made its operations carbon neutral and working towards the goal of zero carbon emissions by 2030. This means that suppliers will encourage and focus on using clean energy The power of influence This program aims to help provide clean energy to communities around the world. Intel is committed to clean greenhouse gas emissions In operation by 2040. The company is working to achieve goals such as clean positive water, free landfills, and 100% renewable electricity.

I expect collaborations between corporations and green tech startups, as well as financial investments, to become more common. Corporations have now realized that we cannot cool the world by reducing emissions alone; We need to remove carbon from the atmosphere. The United Nations Climate Report called imperative. The Frontier Partnership consists of Stripe, Alphabet, Shopify, Meta and McKinsey $925 million seed investment in five startups offering carbon dioxide removal (CDR). Another group, the First Movers Coalition, includes Microsoft, Alphabet and Salesforce.$500 million has been pledged to phase out CDRs by 2030.

Startup innovation

A number of successful startups are innovating in space, particularly in the area of ​​carbon removal. Brilliant Planet is using algae as an affordable, large-scale carbon sequestration solution. The London-based company grows microalgae in open ponds in the desert and achieves a solution without using fresh water. Brilliant Planet has built a 30,000-square-meter production facility in Morocco and the world’s largest algae-growing pond, setting the stage for further growth.

Climeworks uses direct air capture technology to capture carbon dioxide directly from the air. Because this carbon is permanently stored underground, it will never again be affected by climate change. Its website allows anyone to make a climate-related purchase or gift; More than 16,000 people from 56 countries took action. And the goal of the Blue Planet system for carbon removal is to mineralize and store carbon dioxide in the built environment. This helps offset the negative impact of concrete, which accounts for 8% of global carbon emissions.

I have no doubt that startup innovation will grow in a variety of cleantech solutions. More companies and governments are showing interest in electric and hydrogen vehicles, and several states have already banned gasoline-powered vehicles in the future. Solar and wind technologies are developing and are attracting attention for efficient and affordable renewable energy. Renewable energy storage is critical, making battery innovation an important area of ​​future research.

Looking ahead

With green tech and VC investment showing no signs of slowing down, now is the time for startups, corporations and investors to capitalize on the industry’s success. As we move forward, it remains difficult to predict which elements of green technology will be most important, so due diligence is more important than ever. Let’s hope that startups, corporations, and investors work together to find innovative solutions that our world needs more than ever.

The information provided here is not investment, tax or financial advice. You should consult a licensed professional regarding your particular situation.

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