The 2023 Australian Climate Tech Industry Report published by climate tech network Climate Salad has reported that climate tech companies grew their revenues by 88 per cent over the last 12 months, with Australian climate tech founders having raised $553 million in 2022, up from $338M in 2021.
However, the report also highlighted the challenges the industry is facing, and that it will need at least $1.5 billion in investment in the next 12 months for the sector to create more high-value jobs and more companies in order to build Australia’s net-zero economy.
“There is no sugar-coating the situation we are in. Our planet is heading towards an epic disaster,” Mick Liubinskas (pictured, centre, with his team), Climate Salad co-founder and CEO, said. “However, we don’t need to get stuck in anxiety and apathy. There is hope, and more importantly, action. Australian climate tech founders are strong, smart, collaborative and ambitious.
“I am incredibly optimistic about the future of the Australian climate tech sector and our ability to impact meaningful change,” Liubinskas added. “However, we need more industry collaboration, more government support, and more investment dollars. $1.5 billion sounds like a lot of capital for one sector, but serious issues require serious investment, and this is the principal issue of our time.”
At the moment, 97 per cent of founders are currently hiring, and it is projected that over 5000 people will be employed by climate tech companies by 2024.
International expansion is also in the sights of many Australian climate tech companies. In fact, 47 per cent already have overseas customers and 72 per cent have intentions to expand into a new international market this year.
As a rapidly-growing industry worth over $4 billion, the report cited that Australian climate tech’s role in meeting the looming 2030 renewables and CO2 emissions reduction targets and averting climate catastrophe. Climate Salad has noted that its members have ambitions to remove 1,300 gigatons of carbon emissions by 2030.
The sector is also a priority area for the new $15 billion National Reconstruction Fund. The report says that further industry collaboration and investment is essential, especially considering the recent market downturn that has made raising capital more difficult.
“Climate tech founders are no strangers to thinking big,” Amanda Price, Partner KPMG Enterprise, Co-lead Transactions and Ventures, said. “After all, the entrepreneurs in this ecosystem are courageous enough to take on the largest challenge in human history. However, with this large-scale thinking comes large-scale challenges – proven by the fact that nearly half of all climate techs are developing a new technology from scratch. There is no playbook, which is why having support around you is critical as you grow.”
