11/21/2019 | Press release | Distributed by Public on 11/21/2019 09:15
The market map visualizes a representative selection of Israeli companies in various industries impacting Climate Change such as Energy, Agriculture, Mobility, etc. I selected a couple of startups for each sector, based on different criteria. Please note that it is not exhaustive. I met some of the companies mentioned and organized interviews with others.
Israel, which was ranked as #6 country in the 2017 Global CleanTech Innovation Index, continues to export novel technologies all over the world. Despite limited natural resources and arid climate, Israelis have overcome the challenges of the land.
Today, with over 600 companies and startups in CleanTech, Israel has gained the status of a high quality international player in the fields of environmental protection, agriculture, waste management, renewable energy and water treatment.
One impressive organization doing this work is the Arava Institute for Environmental Studies and its various research centers, which in collaboration with Palestinians, Jordanians and other international researchers, are dedicated to finding solutions for sustainable agriculture, renewable energy, water management and desert ecology.
CleanTech is not industry specific. It has emerged as an umbrella term for a variety of different concepts related to environmental challenges, such as conserving resources while increasing productivity at the same time.
It is usually also used to describe ethical investments which is a form of social sustainability. Indeed, impact investors, who choose to invest in companies, organizations and funds based on environmental and social impact alongside a financial return, spotted the synergy early on. Cleantech startups can find a financial boost with 'impact funds.' On the multinational corporations' side, Cleantech solutions are aligned with strategic CSR (Corporate Social Responsibility) undertaken by private businesses, particularly popular with millennial and Generation Z consumers and clients.
6 major trends
Because Cleantech is cross-sectorial, this map gives a good - but by no means exhaustive - overview of which industries are impacted. Let's dive in.
Tackling global challenges
The urgency of global warming has never been so clear. The most recent report released by the UN highlights the economic risks of inaction. For example, the forced migration from the Global South is dramatic: political factors aside, droughts and natural disasters are can be a catalyst for violent conflicts. UN forecasts estimate that there could be up to 1 billion environmental migrants by 2050.
This summer, France recorded an all-time highest temperature of 46 ° Celsius, leading to the deaths of 1,500 citizens, according to their health ministry. In Delhi, a new study has revealed that air pollution and its side effects kill 80 people every day. And by the end of 2050, there will be more plastic than fish in the ocean, according to a new report from the Ellen MacArthur Foundation.
In this context, entrepreneurs are seizing the global warming threat as an opportunity to transform society and make a difference. They have ideas, tech, and know-how. Yet Cleantech startups need to scale up in the fight against climate change.
Still, unlike SaaS companies, for example, Cleantech startups struggle with challenges. Infrastructure and hardware solutions are not easy undertakings and there are fewer venture capitalists eager to back these initiatives. But there are exceptions and Israel Cleantech Ventures (ICV) is one of them. By diversifying its portfolio and gaining governmental support, ICV manages to keep Cleantech as its main focus.
The world doesn't need another online marketplace or mobile gaming app. We need to solve the global warming crisis. It's not just up to entrepreneurs. Policymakers, investors and leading corporates all have a major role to play in building successful Cleantech startups.
If you have insights on technologies or companies I should know about, feel free to share or contact me.