The climate crisis has become a major concern for everyone around the globe, right? We will be in grave danger if the climate keeps changing at the same drastic pace. In such a scenario, we need attention and effort from the social, political, economic, scientific, and business worlds to deal with this crisis. While people are trying to find solutions to this global issue, we must look into climate technology. The growth of climate technology can become a useful solution to the climate crisis. It refers to the group of technologies addressing the impacts of climate change, aiming to reduce greenhouse gas emissions, and promoting the decarbonisation of the world economy.
The climate tech companies are playing a major role in the climate crisis management. They are using climate technologies to create products and services to mitigate and adapt to climate change. In simpler words, these climate tech companies are innovating solutions to decrease the impact of global warming. Adding more power to the battle against the global climate crisis, various governments have extended helping hands towards the climate tech companies. Government assistance can come in the form of funding, favourable climate acts, awareness build-up, and so on!
Read on as we discover the different ways governments can, and some are aiding in developing climate tech companies.
● Various Ways Governments Supporting the Growth of Climate Tech Companies
Climate tech start-ups and companies are heading the fight against climate change. Several governments all over the planet have started to realise the value of climate technologies and the importance of backing climate tech companies. The emergence of new climate tech start-ups proves the ongoing effort to use more climate technologies and bring in innovations. Here are a few examples!
1. Promoting Climate Tech Start-Ups
More and more start-ups are entering the field of climate tech, which is good news for us. Governments should promote the start-ups and companies engaged in creating solutions for the risks brought by the climate crisis. A climate tech company can help reduce greenhouse gas emissions, adapt to climate change, generate economic benefits, and encourage international collaboration. Governments must educate people about such companies. It will draw attention as well as funding from different sources.
2. Passing Necessary Climate Acts
Efforts matters, but sometimes, we need strong regulations to make something happen. When global warming is breathing on our necks, biodiversity is at risk, and valuable species face extinction, accurate climate acts must be in order. Fortunately, many governments in different parts of the world have started passing acts to empower the fight against global warming.
3. Providing Financial Support
Funding is a key factor for any type of business. A business can reach its peak with proper funding and show the best results. Governments can support climate tech companies the same way! Fundings can come in different ways from different directions. Companies and start-ups can approach the governments. However, many governments can make the offer to the climate tech companies.
Here are some examples of financial assistance provided in the United States to clean energy start-ups (the same category but slightly different from climate tech start-ups). CALSeed Ventures provides seed-stage grants on behalf of the California Energy Commission. NREL (National Renewable Energy Laboratory) has been giving the American-Made Challenges series of prizes since 2018. These prizes are focused on technology priorities the Department of Energy has identified.
Furthermore, The United States Government-operated ARPA-E assists US-based companies in recognising R&D projects for probable transformational technologies. By the way, ARPA-E’s funding is available for all businesses, and small companies can also receive funding with favourable terms.
4. Giving Access to Costly Facilities
Not all climate tech companies can afford to build or rent a state-of-the-art laboratory, equipment, and testing facilities. Small-scale companies with limited funding can often face this issue. But where innovation is key, these tools become crucial. Governments can speed up the process of innovation and building of products and services by providing access to modern facilities and laboratories.
5. Offering Expert and Professional Advice
Any business starts operating with proper research and in-depth knowledge of their field. When a company enters the climate technology sector, it will come prepared. Nonetheless, technology is ever-expanding, and then there is experience. If or as needed, climate tech companies can connect to a consultant, but it can be expensive. Governments often step in and provide expert opinions and consultations via third parties.
The future of climate tech companies worldwide looks promising. The government initiative can make their case stronger. Many countries, including the United States, are increasing awareness about the climate crisis and the required actions to prevent it. Climate tech companies and start-ups have started getting more and more funding. Governments are offering funding via grants, prizes, etc. Here’s hoping for the steady growth of climate tech companies and the complete reduction of global warming!