During the recent Unlocking Capital for Sustainability 2023 event in Singapore, Richard Mattison, Vice Chair at S&P Global Trustcon, emphasized the potential for a transition from fossil fuels to sustainable alternatives to address the climate crisis impact.
He mentioned that while greenhouse gas emissions are projected to fall by 25% in 2050 in the best-case scenario, it may not be sufficient. However, he expressed optimism due to increased investments in renewables.
As discussions around energy transition intensify, questions arise about how to make this shift a reality. Nonetheless, obstacles such as capital, development timelines, and historical investment returns continue to challenge energy and industrial technology shifts.
Despite challenges, there are positive signs, with climate tech exits reaching significant levels in recent years. SPACs are seen as a viable option for climate tech companies to secure funding, although they have limitations.
There is no simple answer to promoting energy transition, and it requires various steps ranging from technical planning to exit strategies. The Southeast Asian tech startup ecosystem should consider approaching climate tech investment similarly to deep tech investment, focusing on the long-term view and technical aspects.
Investing in climate tech requires patience and a deep understanding of climate science, making it not suitable for everyone. While the sector may not be accessible to all, taking a meticulous and considerate approach is crucial for addressing the climate crisis effectively.
Ultimately, not everyone can be a hero in combating climate change, but by making informed decisions and prioritizing long-term sustainability, progress can be achieved.
Image Credit: RunwayML
This article was first published on October 2, 2023
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