Climate tech innovation is key to important carbon budgets approaching, offering solutions to help Ireland reach its net zero goals. Ireland has successfully promoted and facilitated tech sectors such as fintech and medtech, attracting capital flows to start-ups in these areas. The same now needs to be applied for the climate tech sector to draw similar international pools of investment to propel this sector forward.
PwC Ireland together with SustainabilityWorks last week launched their 2024 Climate Tech Report identifying a vibrant climate tech ecosystem on the island of Ireland with over 300 innovative climate tech companies. With the right supports, climate tech can be a contributing driver for Ireland’s economy for the next 20 to 30 years.
The report spotlights 22 key climate tech players across key sectors who are creating unique solutions to address the impact of climate change and advance the goal of net zero. According to the report, climate tech in Ireland has experienced steady but slow growth over the past decade, with some global locations now taking significant strides to establish themselves as tech hot spots, such as California and Germany.
Supporting the climate tech sector will not only assist the state in meeting its legally binding climate targets, but also provide economic benefits
The report calls for a dedicated climate tech hub on the Island of Ireland that brings together entrepreneurs, investors, researchers, government and businesses.
A global hub
The report states that while climate tech continues to grow steadily, Ireland must address funding gaps and capacity issues to speed up progress towards Ireland’s net zero goals. The state can - and should - do more. The government should prioritise this sector to make Ireland a global climate hub. Ireland has the opportunity to develop a new economic activity while simultaneously tackling the critical challenge of decarbonisation. To truly exploit the opportunity, PwC and SustainabilityWorks urge the state to officially recognise climate tech as a distinct sector and to prioritise targeted funding, particularly for early stage entrepreneurs.
Supporting the climate tech sector will not only assist the state in meeting its legally binding climate targets, but also provide economic benefits. The challenge and opportunity lie in identifying faster pathways to revenue for these companies, enabling them to scale and grow rapidly.
With over 300 companies, the breadth and scale of the climate tech sector in Ireland is remarkable. The PwC and SustainabilityWorks 2024 climate tech report discusses how the sector has developed organically and there is not enough focus on climate tech as an economic opportunity. Recognising and offering targeted support could amplify the already strong foundation that exists. Furthermore, investing in and supporting this sector will not only deliver economic returns for the state but also advance the achievement of our national climate action plan.
The report calls for three specific actions:
• A climate tech roadmap for Ireland that clearly aligns our decarbonisation targets with both existing and emerging climate tech solutions;
• Focus funding and supports on developing climate technologies in areas where there is competitive advantage, instead of trying to address decarbonisation challenges across all economic sectors; and
• Let’s recognise - officially and unofficially - climate tech as a sector, in its own right.
Ireland stands at the cusp of a big opportunity in the climate tech sector. With the right focus and investments, Ireland can become a key player in this growing field. To do this Ireland must act decisively and embrace climate innovation now.
For the full Climate Tech Report, see: www.pwc.ie