Why there’s hope for net zero by 2050

Welcome to The Offset! Delivered once a month via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in greentech. Get it in your email inbox by registering here.

Dear readers,

It might be hard to believe – thanks to the extreme weather we’re seeing around the globe – but there’s been progress in the global warming battle.

In fact, one of the world’s top energy officials has said that the rapid adoption of solar energy and electric vehicles should be cause for optimism, a commodity in short supply when it comes to the climate.

Today’s issue also looks at how geopolitics can complicate greentech investing.

— Peter

THE BIG STORIES

1️⃣ Malaysia’s national carmakers are joining the EV wagon, but hurdles remain

While not everyone may agree that electric vehicles are the best solution for the climate crisis, they’re undoubtedly the future of the car industry. Malaysia’s carmakers are jumping on the bandwagon, but hurdles remain, including a lack of rural charging stations.

2️⃣ This Temasek-backed agritech firm sows sustainability into rice farming

The world runs on rice after all. Billions of people rely on it as a staple food. However, rice farming is plagued with environmental issues like methane emissions and excessive use of water. Temasek-backed startup Rize is working to tackle the problem by, among other things, building a platform to help rice farmers reduce their greenhouse gas emissions.

DEEP READS

‘Staggering’ green growth gives hope for 1.5C, says global energy chief

The growth in renewable energy efforts and green investments in the past two years has given a top global energy official cause to hope that the world could stay within the 1.5 degree Celsius limit on global heating. Fatih Birol, the executive director of the International Energy Agency, cautioned that while much more needed to be done, the adoption of solar energy and electric vehicles have left him feeling optimistic.

Birol added that solar energy installation and EV sales were on track for the world to hit net-zero emissions by 2050, a key part of the Paris climate agreement. However, he said that a lack of international cooperation is now the most important challenge to hitting the 1.5 degree Celsius goal, adding that rich countries had more responsibility for achieving the target.

“Advanced economies have special responsibilities in fighting climate change. What I would expect advanced economies to do is to increase their ambition further, rather than reducing it,” he said.

The next UN climate summit, Cop 28, will be held this November and December in Dubai and would be a key opportunity for nations to set more ambitious goals, he said.

Image credit: Timmy Loen

TRENDING NEWS

Also check out Tech in Asia’s coverage of Asia’s ecommerce scene here.

1️⃣ China’s greentech giants link supply chains to Southeast Asia

Chinese companies are investing in Southeast Asian nations as part of their greentech supply chains, which includes rare earth mining, EV production, battery materials processing, and solar panel production. However, such investments deepen the region’s dependence on China, which could be complicated amid rising geopolitical tensions.

Why it matters:

Some experts fear greentech partnerships with China could be a new source of conflict between Southeast Asian nations. They could also put the region even deeper in the crossfire between the US and China as the two superpowers battle for technological superiority.

2️⃣ Solar power and storage prices have dropped almost 90%

A new study has indicated that over the last decade, the cost of solar power and battery storage has fallen by 87% and 85%, respectively. The study was produced by researchers from Berlin’s Mercator Research Institute on Global Commons and Climate Change.

Why it matters:

Some experts fear greentech partnerships with China could be a new source of conflict between Southeast Asian nations. They could also put the region even deeper in the crossfire between the US and China as the two superpowers battle for technological superiority.

3️⃣ EV, energy storage battery prices set to fall more, report says

With consumer demand for electric vehicles down, the price of EV batteries has fallen 10%, according to market research firm TrendForce. A price war instigated by Tesla in January resulted in high battery material prices, which have been falling.

Why it matters:

Carmakers may be forced to either slash prices and profit margins or slow their assembly lines. The former method may hasten EV adoption, but the latter would be a blow for the industry.

4️⃣ Twitter ranks worst in climate change misinformation report

A report by Climate Action Against Disinformation has found that Twitter’s (now known as X) policies do the least to counter misinformation compared to Meta, Pinterest, YouTube, and TikTok. The report noted that Elon Musk’s purchase of the platform added to the confusion over policy enforcement.

Why it matters:

By some estimates, Twitter has more than 500 million monthly active users. That’s a lot of people that could be exposed to harmful climate change denialism content.

Photo credit: Shutterstock

5️⃣ HSBC to make US$1 billion in funding available to climate tech startups

Global banking giant HSBC has announced that it has set aside US$1 billion to fund emerging climate tech firms around the planet. Startups in areas like EV charging, carbon removal tech, and sustainable agriculture will be targeted.

Why it matters:

For a startup to scale and achieve its desired impact, it needs funding. But this can be harder to come across in less obviously lucrative areas of greentech, so funding from an institution like HSBC is crucial.

STARTUP WATCH

1️⃣ Resourcify, a platform to digitize waste management, raises US$14.9 million

The German cloud-based recycling platform identifies valuable materials and aims to connect local recyclers with global corporations. The series A round was led by Vorwerk Ventures, with participation from Revent, Ananda Impact Ventures, Speedinvest, BonVenture, and WEPA Ventures.

2️⃣ Lightspeed Venture Partners backs Berlin-based greentech firm Plan A in US$27 million round

Plan A provides a decarbonization platform that businesses can use to gun for net-zero emissions. The firm counts BMW, Deutsche Bank, Visa, and KFC among its customers.

3️⃣ How much carbon pollution is in your product? Muir AI raises US$3.2 million to answer that question

Estimating a product’s carbon footprint can be a tricky proposition, especially for smaller firms focused on extending their runway rather than their environmental impact. Muir AI aims to help them find out by combining satellite technology with artificial intelligence and machine learning.

4️⃣ Traceless completes US$38.7 million series A funding round

The German startup produces a natural biomaterial that can be used as an alternative to plastic. The materials it produces can be processed using technologies that are already commonly used in the plastics and packaging industry.

5️⃣ AC Ventures leads new round of agritech firm Koltiva

Indonesian firm Koltiva helps food producers trace the movement of food along the supply chain, from farmers to consumers. The agritech firm has received an undisclosed sum in an AC Ventures-led round that also included Silverstrand Capital, Planet Rise, and Development Finance Asia, among other investors.

That’s it for this edition – we hope you liked it! Do subscribe to continue receiving The Offset.

See you next month!

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