Climate Tech: the missing piece of Ireland’s decarbonisation jigsaw

• Ireland must invest more in Climate Tech to speed up progress towards the country’s net zero goals. 
• Bridging the gap in capital and supports for Climate Tech - new report by PwC and SustainabilityWorks ‘The Irish Climate Tech Opportunity 2024’

PwC Ireland as well as PwC UK’s Northern Ireland practice and SustainabilityWorks identify gaps that must be addressed for the transition to the net-zero economy, with finance being critical. This is according to the 2024 Climate Tech report 'The Irish Climate Tech Opportunity 2024’ by PwC and SustainabilityWorks, published today. 

The report proposes that governments and organisations across the island of Ireland must recognise Climate Tech as a sector in its own right, arguing that it has developed organically and largely without formal support. Leveraging Ireland’s success as an innovation hub - seen in tech sectors such as FinTech and MedTech, national efforts should be refreshed to do the same for Climate Tech, will attract international pools of investment to propel this sector forward. It is critical that governments on both sides of the border and private sector collaborate to maximise the scale of capital for Climate Tech. 

Four climate tech entrepreneurs from Northern Ireland were interviewed as part of this report, from:

• Joulen - a cutting-edge technology and energy services firm headquartered in Belfast.
• Senergy Innovations Ltd, based in Carryduff, creates affordable, eco-friendly, and integrable solar thermal panels.
• Aramune Technologies Ltd - established as a Queen’s University Belfast spin-out in 2021, it is pioneering a novel method for infection prevention in livestock, companion animals, and humans.
• Artemis Technologies, based in Belfast, is a pioneering clean maritime technology company specialising in zero-emission commercial vessels.

David McGee, ESG Leader, PwC Ireland, said, 

“Climate Tech can be part of the solution to ramp up the decarbonisation of our economy.  But we must provide more State and private sector support to the Climate Tech ecosystem to speed up progress towards Ireland’s net zero goals.  Currently there is not enough focus on Climate Tech as an economic opportunity. Recognising and offering targeted support could amplify the already strong foundation that exists. Investing in and supporting this sector will not only deliver economic returns to the State but will also advance the achievement of our national Climate Action Plan.”

Cat McCusker, Regional Market Leader for PwC in Northern Ireland added, 

“The world now has less than 10 years to halve global greenhouse emissions if we are to have hope of achieving net zero by 2050. Climate Tech is critical to meeting that challenge.While entrepreneurs across the island of Ireland are making a big impact with their Climate Tech solutions, addressing both local and global issues, they need more support from the public and private sectors. The Northern Ireland Executive has recently published a draft Programme for Government, in which there is commitment to publish a new environment strategy, set carbon budgets and develop the region’s first Climate Action Plan, which we hope will make a difference in driving this exciting economic opportunity.”

“Meanwhile, PwC’s latest Net Zero Economy Index reveals that a year-on-year decarbonisation rate of 20.4% is now required to limit global warming to 1.5°C above pre-industrial levels. This means that the world must now decarbonise at a rate twenty times faster than it achieved last year. The UK has had the highest long term level of decarbonisation in the analysis, maintaining a decarbonisation rate of 3.8% over the duration of the 21st century - meaning that progress really needs to happen fast.”

The report spotlights 22 key Climate Tech players in key sectors across the island of Ireland who are creating unique solutions to address the impact of climate change and advance the goal of net zero. The report highlights that Climate Tech in Ireland has experienced steady but slow growth over the past decade, with some global locations now taking significant strides to establish themselves as Tech hot spots, such as California and Germany.  

In addition to the climate imperative, the green economy presents a generational investment opportunity. Ireland’s Climate Tech companies will pursue international markets, enabling our economies to build a robust Climate Tech sector that drives economic growth. The report cites specific significant Climate Tech opportunities for Ireland in the key areas:

• Grid technologies and energy management services 
• Decarbonisation in commercial buildings
• Smart farming, nature restoration and food system innovation - Ireland’s largest domestic sector has an opportunity to lead the way globally 
• Ireland can play a leading role in EV battery technology and the advancement of Sustainable Aviation Fuels (SAF)
• Empowering women-led businesses and ensuring equitable access to finance

The PwC and SustainabilityWorks report calls for three specific actions:

• A Climate Tech Roadmap for Ireland that clearly aligns our decarbonisation targets with both existing and emerging Climate Tech solutions;
• Lets recognise - officially and unofficially - Climate Tech as a sector in its own right 
• Focus funding and supports on developing climate technologies in areas where there is competitive advantage, instead of trying to address decarbonisation challenges across all economic sectors; and  

Aideen O’Hora, Co-Founder, SustainabilityWorks, concluded, 

“Ireland stands at the cusp of a big opportunity in the Climate Tech sector. With the right focus and investments, Ireland can become a key player in this growing field. To do this Ireland must act decisively and embrace climate innovation now.”