This research paper dives into the global trends in climate-tech entrepreneurship from 2013 to 2024, drawing on secondary data from top reports like those from PwC, BloombergNEF, the World Bank, and Multilateral Development Banks (MDBs). It looks at how investment flows vary across different sectors, regions, and types of investors, while also interpreting the results through the lenses of entrepreneurship theory, sustainability transitions, and innovation systems.The findings show that global investment in climate-tech skyrocketed nearly six times between 2013 and 2021, largely fueled by policy commitments like the Paris Agreement (2015) and the swift rise of renewable energy and electric vehicles (EVs). However, the sector faced a downturn in 2022–2023 due to tightening macroeconomic conditions, before making a partial recovery in 2024. Despite these ups and downs, climate-tech proved to be more resilient than the overall venture capital markets, highlighting its long-term strategic significance.When we break it down by sector, we see some notable imbalances: renewables and EVs dominate the funding landscape, while high-impact but riskier areas like carbon capture, sustainable agriculture, and water resilience are still underfunded. This points to a trend where entrepreneurial ecosystems favor commercially viable technologies, leaving innovations aimed at adaptation somewhat overlooked. On a regional level, funding is heavily concentrated in North America, Europe, and Asia-Pacific, with Africa and Latin America together receiving less than 10%. This is particularly troubling given the heightened climate risks that the Global South faces. Public finance tools play a crucial role in opening up entrepreneurial opportunities in high-risk areas and emerging sectors. However, relying too much on subsidies brings up concerns about the long-term viability of these business models. This discussion looks at these insights through the lens of entrepreneurship theory, showcasing both the promise and the challenges of climate-tech entrepreneurship as a force for sustainability. It points out the tricky balance between making a profit and ensuring the planet's survival, which pushes entrepreneurs to innovate in environments that depend heavily on policies and require significant capital. The paper wraps up by stating that climate-tech entrepreneurship can be a strong driver for sustainability transitions, but it faces hurdles like sectoral disparities, regional inequalities, and a lack of funding for adaptation efforts. Suggestions include broadening investments beyond just mitigation, developing markets for adaptation technologies, enhancing collaboration between public and private finance, and building capabilities in developing economies. Future studies should focus on gathering primary data, analyzing startup performance over time, and assessing impacts to see how entrepreneurial efforts lead to tangible climate results. In short, climate-tech entrepreneurship is both a chance and a challenge—an innovation engine that needs careful guidance toward fair and comprehensive climate solutions.
SRIVASTAVA et al. (Thu,) studied this question.