Climate Crisis, Green Oasis: Southeast Asia Lures Investors with Sustainability
According to Berkeley Earth, ERA 5, 2023 was the hottest in the last 125,000 years, bringing extreme weather events and crippling economic losses. This has led to a rise in interest in businesses that protect the environment. Investors are putting more money into these companies than ever before, marking a new era of “climate-conscious” investing. When discussing climate change, all the investors and entrepreneurs linked to it are “hot topics”.
Green and climate tech investments and fundraising also gained momentum, bolstered by an urgent need to adopt sustainable practices. This has heralded a new era of climate-conscious investments.
Southeast Asia, which has a lengthy coastline and low-lying areas that make it particularly sensitive to climate change, is seeing an increase in green tech investment, according to a recent DealStreetAsia analysis. The region’s green tech firms raised an incredible $140 million in funding between July and September—the largest quarterly volume in at least five years!
Leading the pack is Singapore-based InterContinental Energy, a renewable energy company, which raised a whopping $115 million in September from investor Hy24, which focuses on the sustainable hydrogen industry, and the city-state’s GIC sovereign wealth fund.
The third quarter’s climate-tech fundraisers were waste management firms Blue Planet Environmental Solutions in Singapore, and Rekosistem in Indonesia.
Other notable green tech startups raising capital include Singapore’s Hydroleap, a company specializing in green wastewater technology, and Climate Alpha, an AI-powered analytics platform for navigating the climate tech landscape. These funding rounds highlight the diverse range of innovative solutions taking root in Southeast Asia’s burgeoning green tech sector.
It can be said that Southeast Asia’s impressive fundraising exemplifies the global potential for green innovation, especially in Singapore
Why Singapore’s Green Wave is Attracting Climate Tech Investors
Beyond the urgent need for climate action, Singapore offers fertile ground for green tech startups for several reasons:
Large and Growing Market:
Singapore boasts a large and growing population with a high demand for sustainable solutions. This creates a lucrative market for green tech companies in areas like renewable energy, waste management, and sustainable agriculture.
Examples of success: Companies like Singapore-based InterContinental Energy (renewable energy) and Blue Planet Environmental Solutions (waste management) are attracting investors. Other notable players include Hydroleap (green wastewater technology) and Climate Alpha (AI-powered climate tech analytics), both based in Singapore.
Supportive Policy Environment:
Recognizing the urgency of climate action, the Singaporean government is actively prioritizing green initiatives. They offer attractive incentives for clean technologies, providing a stable foundation for green tech companies to establish and flourish.
Singapore has implemented a range of incentives to support regional companies, especially small and medium-sized organizations (SMEs), as they transition to sustainable practices. The S$180 million (US$135 million) Enterprise Sustainability Programme is one example of this. There are also funds aimed at improving energy efficiency for industrial setups, managing water usage, and initiatives promoting rooftop solar energy, building upgrades, and eco-friendly bonds.
The nation is determined to become a central hub for financing in various sectors, with a strong emphasis on renewable energy. Efforts have been made to develop an infrastructure and regulatory framework conducive to this goal.
Tech-Savvy Population: Boasting a young and tech-savvy population, Singapore offers a receptive market for innovative solutions.
42 years after it launched its first national computerization plan in 1980, Singapore – placed 64th among cities for its population size – has come up as the world’s 12th top tech city.
The standing, compiled from 14 metrics – including tech talent, real estate, and business environment – puts the country behind three Chinese cities, six Indian ones, Hong Kong and Melbourne, but ahead of Sydney and Tokyo.
The Future of Green Tech in Singapore
- More Innovation: As the market matures, we can anticipate a wider range of innovative solutions tailored to address Southeast Asia’s specific climate challenges. This could involve breakthroughs in areas like energy storage, water management, and climate-resilient agriculture.
Global Leadership: Singapore, with its strong foundation in research and development, has the potential to become a global leader in climate tech innovation. This leadership can inspire and influence other regions facing similar environmental challenges.
- Sustainable Future: With the successful implementation of climate tech solutions, Singapore can build a more resilient and sustainable future for its citizens and the environment. This could involve achieving carbon neutrality, minimizing waste generation, and fostering a circular economy.
Conclusion
The urgency of climate change has ignited a global fire for green tech investment. Singapore, with its supportive ecosystem and tech-savvy population, is emerging as a frontrunner in this green wave. As investors and innovators converge, Singapore has the potential to become a global hub for climate solutions, paving the way for a more sustainable future for all.
