Greentech vs cleantech vs climatetech: unraveling the terms
"Climatetech," "greentech," and "cleantech" are terms that have become emblematic of the global push towards sustainability and environmental stewardship. While these terms are often used interchangeably, they represent distinct spheres within the broader movement to combat environmental challenges. Understanding the nuances between them is essential in appreciating the diverse approaches and technologies employed to create a more sustainable future.
Climatetech
Focus: Primarily addresses the challenges of climate change, including reducing greenhouse gas emissions, mitigating global warming, and adapting to the changing climate.
Scope: Encompasses a broader range of technologies and solutions beyond just energy, including those related to agriculture, transportation, waste management, and more.
Market Size: According to Net Zero Insights’ State of Climate Tech report, Europe and the U.S. raised a total of $82B in climate technology investment in 2022.
Company Examples: CarbonCure Technologies (embodied carbon reduction), The Ocean Cleanup (cleaning up floating plastics), Climeworks (carbon capture and storage), Ecolab (water, hygiene and infection prevention), Terracycle (waste recycling).
Greentech
Focus: Broadly refers to technologies and innovations that aim to have a positive impact on the environment. This includes both climate-related concerns and other environmental issues such as pollution and resource conservation.
Scope: Covers a wide range of technologies and practices, including renewable energy, energy efficiency, water purification, waste management, and sustainable agriculture.
Market Size: The global green technology and sustainability market size is projected to grow from $16.50B in 2023 to $61.92B by 2030 at a CAGR of 20.8% (Fortune Business Insights).
Company Examples: Tesla (electric vehicles), Recyclebank (incentivising sustainable habits), AeroFarms (vertical farming), SolarCity (solar energy), Renewlogy (preventing landfill-bound waste).
Cleantech
Focus: Similar to greentech, cleantech is a term that encompasses technologies and processes that have a reduced impact on the environment. It often emphasises cleaner and more sustainable alternatives to traditional technologies.
Scope: Traditionally, cleantech has been associated with energy-related technologies like solar, wind, and biofuels. However, it has evolved to include a broader array of environmentally-friendly innovations.
Market Size: The global market size for key clean energy technologies could reach more than $600B per year by 2030 if countries fully implement announced energy and climate pledges, with China would dominating the market, at some $391B per year (Statista). Key clean energy technologies include solar PV systems, batteries, wind systems, heat pumps, electrolysers, and fuel cells. Domestic demand in China, the EU, the U.S., and India would account for roughly three-quarters of the global market.
Company Examples: Enphase Energy (solar energy), Opus 12 (CO2 conversion), Blue Oak Resources (electronic waste recycling), ChargePoint (electric vehicle charging), Carbon Engineering (carbon capture).
Conclusion
In an era marked by heightened awareness of environmental challenges, the realms of climatetech, greentech, and cleantech emerge as catalysts for transformative change. As sustainability and ESG regulations gain momentum, these technologies are not only thriving but also propelling a seismic shift towards a more harmonious coexistence with our planet.
While there isn't always a strict delineation between these terms, they are all part of the larger movement towards sustainability and addressing environmental challenges. In practice, the choice of which term to use may depend on context, location, and the specific focus of the technology or industry being discussed. For example, "cleantech" might be used when discussing a start-up working on a new solar panel technology, while "climatetech" might be used when referring to a company developing solutions for carbon capture and storage.
