Climate tech encompasses a diverse range of technologies and applications focused on mitigating climate change, either by reducing greenhouse gas emissions across various industries and processes or by removing previously emitted carbon dioxide from the atmosphere. Key sectors for climate tech include mobility & transport, energy generation & distribution, industrial processing & manufacturing, food & agriculture, and the built environment.
The growth of these four cross-segments is credited to their alignment with climate change mitigation goals and the demand for innovative solutions., Founder of Conscious League, which includes Conscious Venture Studio — a platform that collaborates with global projects dedicated to products and services positively impacting climate, energy, and social equity — elaborates,
Recently, Apple reportedly shelved its plans to develop an electric car, raising questions about whether tech investment is shifting to more lucrative opportunities.“The recent struggles of climate-tech companies in the stock market may indicate investor preference for other sectors perceived as offering better returns. However, the long-term viability and necessity of climate tech solutions remain strong, suggesting that market fluctuations may not accurately reflect the sector's potential.
“Focusing on our sector, Climate tech software can have profitable business models. For instance, our SaaS model has a gross margin of over 80%, consistent with traditional SaaS models. However, regulatory pressures are necessary to unlock significant market sizes for adoption.” In the realm of climate tech software, traditional performance metrics are still relevant. Grace points out,“extended sales cycles, as certain companies adopt a ‘wait and see’ stance.”