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It is incredible how much can happen in 12 months. This year has been no different. However, some events impacted Clean Tech, how it's preserved, and the opportunities for Clean Tech to develop.
We look at three things which have impacted Clean Tech over the last year:
Oil prices
Oil has been a continuous headline throughout the year, with the price post-pandemic when the world "reopened", and the oil demand was significantly higher than supply pushing prices to new records throughout the year. Following this, Russia's invasion of Ukraine made more governments relinquish the oil supply directly from Russia. Trying to find solutions to move away from Russian dependency, we saw more investment in Clean Tech solutions.
Big businesses such as the telecoms industry, which has previously relied heavily on diesel, have also actively sought alternative energy methods after the price spiking of diesel throughout the year. Solar panel technology hit an all-time low for its price bracket this year. This low-cost, sustainable energy solution has seen many companies choose it as an alternative.
Cloud solutions
The pandemic saw companies re-organise their processes to enable working from home. While offices may have reopened, this pushed forward cloud adoption worldwide. However, to enable the cloud, power is required. We will see 2023 have more Clean Tech opportunities targeting the cloud, creating low emissions part of a business's consciousness, particularly if working at home is used as part of their green credentials. Moving away from power transmissions and distribution systems will significantly reduce carbon emissions, posing an opportunity for Clean Tech.
COP27
While some felt that COP27 did not do what was needed for the climate crisis, it did highlight the benefits of Clean Tech. Clean Tech is being referred to more often as Climate Tech, and this transition has resulted in climate start-ups being chased by investors rather than trying to pitch for funding.
In previous years, there was little interest in things like green hydrogen; however, this year, the recognition that multiple viable routes to lower admissions are needed has put Climate Tech squarely in front of potential investors. The world urgently needs Tech with the ability to reduce climate change, and these Climate Tech start-ups are dedicated to that purpose. Investors generally look to make at least a 30% return from Climate Tech start-ups.
The last few years have been a test for everyone worldwide, and 2022 was not much different. What did happen was refocus people's attention on the climate crisis, the climate-related disasters, and the instability of oil has pushed forward the climate agenda within individuals, businesses and investors. 2023 could be set to find higher levels of investment and more focus on seeing Climate Tech move closer to commercialisation as the industry begins to mature and is funded as a priority.