SEA’s climate tech landscape: Energy solutions are making it rain

2023 is on track to become the warmest year on record. This isn’t good news for Southeast Asia, a region that’s among the most at risk from climate change.

A rising crop of Southeast Asian startups are working to tackle these challenges, whether through electric vehicles or solutions like modifying agricultural systems.

Investors have kept an eye on this scene over the past decade, and Southeast Asian climate tech startups have seen a steady rise in funding.

Tech in Asia data shows that 41 of the region’s climate tech startups secured funding in 2023, the highest annual figure to date. However, the numbers for last year are substantially lower than those for 2022 in terms of dollar value. Climate tech funding hit its peak to date in 2022 at US$260.6 million.

A majority of these startups provide energy solutions such as waste-to-energy conversion systems and solar power integration as well as advancements in energy storage technologies.

For instance, Singapore-based Redex operates a platform for Asian utility firms to register, verify, and retire renewable energy certificates (RECs), which companies can trade to offset scope 2 emissions from fossil fuels. Each REC represents 1 megawatt hour of renewable electricity.

Thailand-based GreenYello, meanwhile, helps companies to develop, construct, operate, and maintain photovoltaic (PV) or solar power plants. Unlike traditional power plants, PV power plants generate electricity by converting sunlight into energy via solar cells.

The second-most popular field is waste management and recycling, which include ERTH in Malaysia, Indonesia-based Rekosistem, and Singapore’sBioMetallica. This is then followed by the carbon markets segment, which develop carbon capture tech or other projects that aim to balance carbon emissions.

Singapore has the most number of climate tech startups in Southeast Asia. In fact, the city-state has more of such companies than the rest of the region combined.

Part of this may be attributed to government support. For example, the Singapore Green Plan 2030 was announced in February 2021. Startup SG, a government initiative to showcase Singapore’s startup ecosystem, has also partnered with accelerators like GreenMeadows.