With several of the world’s largest economies and corporations making significant commitments toward decarbonization, a new era of innovations has spawned, aptly named climate tech. Consequently, interest, specifically from venture capitalists and innovators, is causing a boom in the development of and investments in transformative technologies that have the potential to fully eliminate greenhouse gas (GHG) emissions across the five major emitting industries: industry, agriculture, buildings, transport, and energy production. In order to identify the key technologies shaping the climate tech ecosystem, Lux Research took a bottom-up approach by starting at the source of GHG emissions to populate a list of 35 potential technologies capable of fully eliminating GHG emissions. With factors like policy and regulation, consumer preferences, supply chain risk, shareholder demands, and employee sentiment impacting business decisions and performance, there is now a sense of urgency to address the GHG emissions problem from a business perspective that did not exist before. Climate tech presents a growing opportunity to find suitable technologies with value propositions in a new competitive marketplace. The vibrant ecosystem, influx of capital, and growing regulatory support present industry with a promising pipeline of climate tech solutions for technology commercialization. With growing early stage developments being funded, industry is best positioned to identify the best technologies for its portfolio and execute the last steps toward market application.
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