Uncovering the critical elements for Asian climate technology to thrive

Uncovering the critical elements for Asian climate technology to thrive

In the hard-to-abate sectors like aviation, startups may need to work in consortiums or alliances to solve complex problems. Singapore, with its status as a technology and business gateway to Asia, offers a promising landscape for early-stage climate tech startups. However, these companies face notable fundraising, policy, market, and integration challenges.

Fundraising Challenges

Climate tech startups often rely on a mix of grants and private capital. Grants, while catalytic by de-risking projects and supporting vulnerable stakeholders, can be unpredictable, bureaucratic, and limited in scale. Private venture funding has become more targeted and discerning, favouring startups with sustainable business fundamentals and real-world problem-solving. Competitions like Singapore's SLINGSHOT and Lee Kuan Yew Global Business Plan Competition provide critical opportunities for startups to access investor networks, grants, and global exposure, but these require strong pitches and validation of market potential.

Market Signals

Climate tech companies often face weak or delayed market signals due to policy uncertainty, fragmented demand, and the challenge of quantifying impact and return in early stages. Singapore’s regional and global connectivity can strengthen market signals for startups targeting regional and global trade flows.

Policy Coherence

Globally, climate tech innovation is shaped by complex and sometimes inconsistent climate policies across jurisdictions. Singapore provides a relatively coherent and supportive policy environment, yet startups must still navigate evolving regional and global regulatory landscapes.

Integration of Solutions

Effective climate tech solutions require multidisciplinary integration across energy systems, industrial processes, and urban infrastructure. Singapore’s emphasis on collaboration, networking, and co-creation offers a model for fostering solution integration.

Advice for Early-Stage Climate Tech Startups

• Leverage grant funding strategically to de-risk projects and attract private investors, while preparing for the administrative burdens and limitations associated with grants.
• Participate in regional startup competitions and global platforms like SLINGSHOT and LKYGBPC to build networks, validate business models, and gain exposure to investors and collaborators.
• Focus on building robust business fundamentals and verifying real-world impact to attract more discerning investors in the current funding climate.
• Engage proactively with policy developments and seek partnerships to navigate regulatory complexity and leverage Singapore’s R&D ecosystem and regional connectivity.
• Cultivate cross-sector collaborations early to integrate their climate solutions effectively and enhance scalability.

In summary, the climate tech startup ecosystem in Singapore benefits from strong regional networks, government support, and global connectivity. However, startups still face notable fundraising, policy, market, and integration challenges that require strategic navigation and leveraging diverse resources and partnerships. Prioritizing the ease of implementation of a solution can increase potential buy-in from adopters.

This article is related to topics such as Carbon & Climate, Policy & Finance, aviation, infrastructure, climate, business resilience, decarbonisation, sustainable finance, innovation, climate finance, and climate tech. It can be found in various regions within the Asia Pacific and Singapore. Joining the community supporting the article's publication can provide unlimited access to the content and members-only perks. The article does not contain any advertisements.

The article is part of the SDGs (Sustainable Development Goals) 9, 12, 13, and 17. The lull in climate tech investments is due to investors nursing a "hangover" following exuberance during the Covid-19 pandemic. The article is intended to strengthen independent journalism, which is crucial for guiding business and policy development for positive impact. The winning ideas at TLC 2025 are featured in a readable article. Technology risk is often less of a problem for startups compared to market development and supportive policy frameworks. The article is published in a context of ongoing discussions and developments in the field of climate and sustainable infrastructure.

Notably, Nandina REM, a climate tech startup, was a finalist at The Liveability Challenge (TLC) 2024 for their solution to produce circular carbon fibre materials recovered from aircrafts.

1. To secure funding for their climate tech ventures, startups should strategically leverage grant funding to de-risk projects and attract private investors, while also preparing for the administrative burdens and limitations associated with grants.
2. Climate tech companies can gain exposure to investors, collaborators, and various opportunities by participating in regional startup competitions, such as Singapore's SLINGSHOT and LKYGBPC, and global platforms.
3. Effective climate tech solutions require multidisciplinary integration, and Singapore's emphasis on collaboration, networking, and co-creation offers a model for fostering solution integration.
4. Startups must engage proactively with policy developments, seek partnerships, and leverage Singapore's R&D ecosystem and regional connectivity to navigate regulatory complexities.
5. Cultivating cross-sector collaborations early in the development process can help integrate climate solutions effectively and enhance scalability, as demonstrated by Nandina REM, a finalist at The Liveability Challenge 2024 for their circular carbon fibre material production solution recovered from aircrafts.

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