by Ross Thompson CEO, Greenbox

Manufacturers across the Asia Pacific region – from Singapore to Sydney, Adelaide to Auckland – are central to decarbonisation. If Australia and its business ecosystem doesn’t ride the opportunity winds to its 2050 net zero target, don’t expect too much wealth and health to flow through the Australian economy in the years ahead.

Current events and latest polls tell us that Federal and State Policies have taken too long to implement. Meanwhile, a majority in our households and the workplace are thinking ‘just get on with it.’

As the presidential election approaches in the US, should the Democratic Party keep its control, it is likely that significant investment into cleantech will continue off the back of President Biden’s administration signing into law the largest clean energy investments in America’s history.

Add to this that the globally agreed target limit of 1.5C to avoid damaging climate change impacts was recently breached across an entire year for the first time, according to the European Union’s climate service, and it seems clear we need to take action – and soon.

How we create and use technology is the biggest lever to manage climate change. The International Energy Agency estimates that 35% of the emissions cuts needed to meet 2050 climate goals will have to come from technologies not yet available.

The window will close as governments and firms jostle for gamechanger tech in this great clean energy economy.

Given the enormity of the task at hand to decarbonise Australia, there will always be pressing trade-offs as Australia looks to leverage its abundance of gas reserves as the transitional fuel towards its 2050 net zero targets (latest policy, backing gas until ‘2050 and beyond’).

Aussie smarts should and must supply the inexorable demand created by the global transition to a net zero economy.

The good news is our climate tech sector has some momentum. Globally, compared with a few years ago, there is now a clear market for climate technology. Australian climate tech players span sectors ranging from renewables, carbon markets and agri-food through to storage, mobility, built environment, data and finance, and circular economy.

Our circularity focus here at Greenbox includes repurposing existing tech hardware to reduce e-waste.

Australian cleantech is powering up everything from EV charging and hydrogen solutions to virtual power plants, vertical and smart farming, and soil carbon removal. Climate Salad’s 2024 Australian Climate Tech Industry Report identifies 689 climate tech companies with 49% already operating internationally.

Key takeaways include that Australian climate tech can create both domestic and international impact, 80% of companies aim to raise capital in the next 12 months, and market conditions continue to make raising capital challenging.   

Climate tech founders are looking to the government’s recent 15B National Reconstruction Fund Corporation for financial support targeted at high-value industry transformation. Some are scratching their heads, however, and the fund has been under fire for being slow out of the blocks.

Climate tech addresses complex challenges, so this deep tech activity is naturally capital-intensive and a good number of Australian climate tech start-ups are struggling in the soft market for funding. Positively, Q2 2024 venture capital data from Cut Through Ventures showed that Climate Tech/CleanTech, along with Fintech and Biotech/Medtech “remained the most consistently supported sectors by investors, maintaining their positions atop the best-funded segments.” Long term, there is unquestionable demand for climate tech.

Australia’s energy transition is everyone’s challenge, but it is technology that will deliver it. Tech, AI and data analytics can see and rapidly think across, inside and forward to drive innovation, efficiency and productivity that is low-carbon, low-waste and regenerative.

Tech roles in every company should be highlighting efforts to bring their organisation and supply chains into the Australian circular economy. It’s about digital leadership but also taking responsibility given the ongoing deep environmental and social footprint attached to resourcing the infrastructure and hardware of this extraordinary digital era.

Importantly, you don’t have to be a climate tech company to impact climate change. There are quick and impactful decarbonisation wins for all Australian companies through technology.

The obvious one is reuse of devices like laptops, desktops, smartphones and monitors: around 15% of a company’s climate emissions come from its ICT equipment and 80% of an ICT product’s emissions take place when it is being produced. Circular ICT procurement delivers huge gains.

In a circular economy you have accessibility without necessarily buying, owning and discarding. The whole non-linear point is to keep products and materials circulating so materials don’t become waste and nature is regenerated.

On top of widespread tech-led business decarbonisation actions, we need the Australian government to step it up on climate policy. Business leaders should advocate for more financial support and incentives for renewables and low emission technologies and activities.

Climate tech companies do our heavy lifting for the transition, and they need a bit more help.To get to this green future first, we need commitment, capital and collaboration on a whole new level. Let’s get on with it and create the jobs, companies and country of the future.

Ross Thompson is Group CEO of sustainability, data management and technology asset lifecycle management market leader Greenbox. With facilities in Brisbane, Sydney, Melbourne, Canberra, Auckland, Wellington, and Christchurch. obligations.