A Promising Year For ClimateTech
Climate change and sustainability have been hot topics for decades, but progress has been slow. Until now.
Advances in green technology have soared in recent years; global governments have committed to a net zero future, sustainable technologies are economically viable and the cost of wind and solar power has fallen by 70% in the last decade, to name just a few examples. Additionally, with Russia’s invasion of Ukraine and the legislation of the Inflation Reduction Act, the implications for the future and feasibility of this new frontier in ClimateTech look promising.
As we enter the New Year, we have conducted some market research to predict ClimateTech’s trends of 2023.
Seven ClimateTech Trends To Look Out For in 2023
ClimateTech will continue to be appealing in a generally bleak environment
As the economic decline continues to hit the tech and crypto market, ClimateTech investing will emerge as a haven for entrepreneurs and investors. The unavoidable effects of climate change, alongside the recent passage of the Inflation Reduction Act, will foster a prolonged bull market in ClimateTech.
Hybrid and electric technologies will move beyond cars to include trucks, aeroplanes, and boats
The electrification of trucks, aircraft, and watercraft will commence, or at least go hybrid, to begin with. With better batteries, more effective electric motors, and hybrid technology, the range can now be extended for use in more than just passenger cars.
The next generation of climate technologies must incorporate transparency and trust
Exciting changes resulting from the recent transfer of capital and talent to diverse markets related to the climate have been observed. For instance, an increase in innovation in carbon removal projects, sales procedures, measurements, and verification technologies was observed in carbon markets. As the industry continues to evolve, securing trust and enhancing accessibility for new businesses are both vital. Examples of what this would look like could be by offering simple carbon measurements and verification to enable smallholder farmers to participate in carbon markets.
We will see more emphasis on finding climate solutions that safeguard the most vulnerable
Investors, philanthropists, and the government will put more effort into buying communities and ecosystems more time in 2023 as the effects of climate change worsen and disproportionately affect those who are already most vulnerable.
There will be a push in the coming year to define the landscape of scalable investment opportunities in adaptation and resilience as well as to pinpoint the technologies and business models that will give us the best chance of safeguarding lives and the environment while we simultaneously move to quickly reduce emissions and absorb carbon dioxide from the atmosphere.
Renewable Energy is poised for explosive growth
Nearly 33% of the world’s electricity is anticipated to be generated by renewable sources by the end of 2023. Businesses and consumers are getting more interested in solar and wind energy as they become more cost-competitive with conventional forms of power generation. The falling costs of storage technologies are also making it easier for renewable energy to be used on the grid. More CleanTech solutions will probably be applied in the field of renewable energy in the upcoming years.
The importance of resilience will increase for grid operators
Even with our best efforts, emissions are still rising, and the quantity of carbon trapped in the atmosphere is increasingly changing weather patterns. For grid operators, this implies more floods, fires, and other instances where the grid is under stress, causing overload or blackouts.
It is unclear how grid operators will respond to this growing danger, but one potential conclusion is the development of mini and microgrids, which can use batteries to function independently of larger electrical networks if necessary.
2023 will be the year of tech talent migration to ClimateTech
Entrepreneurs from household tech companies will continue to flock to ClimateTech, bringing all of their expertise, networks, and enthusiasm to a market poised for a sustainable tomorrow. These individuals have a wealth of experience building on a global scale, and they are recognising trillion-dollar legacy sectors and systems as opportunities for billion-dollar climate business opportunities.
How Storm4 Can Help
These ClimateTech trends of 2023 show the market’s continuing upward trajectory. Many ClimateTechs will be looking to meet this increased demand by growing their teams. This is where Storm4 can be of support. As GreenTech Executive Search specialists, we connect GreenTech startups with the brightest minds on the market across North America, Europe and APAC.
For support with your hiring needs, get in touch today.