The discourse surrounding Climate Tech, an umbrella term encapsulating solutions aimed at mitigating or adapting to climate change, has gained traction in recent years. Yet, defining this concept remains a nuanced endeavor, with various interpretations and frameworks proposed by different entities. Some interpretations of Climate Tech are narrow, focusing solely on renewable energy solutions such as solar, wind, and hydroelectric power. In contrast, others adopt a broader perspective, encompassing a spectrum of innovations across sectors like agriculture, transportation, construction, and waste management.

Defining Climate Tech

Aster Fab refers to Climate Tech as encompassing any product, service or technology designed to address at least one of the six core objectives outlined in the European Union’s (EU) Taxonomy Regulation.

It’s important to note its distinction from cleantech, which predominantly focuses on energy-related elements. For further elucidation, delve into our blog post “From the Cleantech 1.0 Bubble to the Climate Tech Era” for deeper insights here.

The Six Objectives

Figure 1 – The definition of Climate Tech according to Aster Fab

Here are the six pillars outlined by the EU Taxonomy, providing a structured framework for understanding Climate Tech and its criteria.

1. Contribution to climate change mitigation: This pillar focuses on activities that significantly contribute to reducing greenhouse gas emissions or increasing carbon sequestration compared to the baseline for that activity. Climate Tech startup examples include: Ekwateur (Renewable Energy, France), Northvolt (Batteries, Sweden), Heliogen (Concentrated Solar Power), SkyCool (Radiative Cooling, United States)

2. Contribution to climate change adaptation: Here, the emphasis is on activities that enhance resilience to climate change impacts, such as improving infrastructure to withstand extreme weather events or implementing water management strategies to address changing precipitation patterns. Climate Tech startup examples include: Terrafuse (Flood Risk Modeling, United States), Urban Canopée (Heat Island Mitigation, France)

3. Sustainable use and protection of water and marine resources: Activities that promote sustainable water management, including water conservation, pollution reduction, and protection of marine ecosystems, all of which contribute to climate resilience and adaptation. Climate Tech startup examples include Bioceanor (Water Quality Monitoring, France), H2Ok Innovations (Water Optimization, United States)

4. Contribution to the transition to a circular economy: This pillar highlights activities that promote resource efficiency and waste reduction, thereby reducing the environmental footprint and contributing to climate change mitigation efforts. Climate Tech startup examples include AMP Robotics (Waste Sorting, United States), Ecovative (Mycelium Packaging, United States)

5. Pollution prevention and control: Activities falling under this pillar aim to prevent or minimize pollution of air, water, and soil, thereby reducing adverse environmental impacts and supporting climate resilience. Climate Tech startup examples include Blue Ocean Robotics (Ocean Clean Up, Denmark), Carbon Cure (Sequestered CO2 in Concrete, Canada), Graviky Labs (New Ink for Packaging, India).

6. Protection and restoration of biodiversity and ecosystems: This pillar underscores activities that safeguard biodiversity, restore degraded ecosystems, and enhance natural carbon sinks, such as forests and wetlands, thereby contributing to climate mitigation and adaptation. Examples: FlashForest (Wildlife Conservation), NatureMetrics (Biodiversity Monitoring, UK), Spoor (Birdlife Data for Wind Farms, Norway).

In conclusion, we advocate for a thorough framework that assesses the sustainability and climate impact of technological innovations. At Aster Fab, our primary mission revolves around supporting hard-to-abate industries in tapping into the potential of climate technology (see our 9 industries of focus here). So, if you are seeking to engage with Climate Tech startups or exploring ways to decarbonize your operations, feel free to reach out to Léonard Stéger lsteger@aster.com.