New Commonwealth Bank insights suggest that Australian businesses are poised to benefit from a surge in climate tech over the next decade.
Climate tech is a growing field of technology addressing climate change, which includes electric vehicles, low-carbon cement, and emission measurement tools. It is forecasted to grow ninefold over the next decade.
Speaking ahead of a CBA-hosted climate tech panel discussion at South by Southwest (SXSW) in Sydney, CommBank General Manager of Climate Strategy Alex Matthews highlighted the potential for Australian businesses to transition and drive economic growth in the anticipated climate tech growth.
“Funding for climate tech in Australia has accelerated in recent years, and Australian ventures hope to raise $1.5 billion in the next 12 months. With strong research and development, a thriving start-up ecosystem, and pools of capital, Australia is well-positioned to capture the opportunity,” Matthews said.
According to CBA research, Australian businesses are adopting sustainability initiatives, with 58% already and 49% planning to do so. However, 60% of businesses report that costs and lack of funding are primary barriers, with 60% of businesses citing these as the primary barriers.
“We see climate tech playing a critical role in not only in providing new solutions for consumers and business but also helping address cost barriers through efficiencies in the ways these solutions are developed and brought to market,” Matthews stated.
“We’ve seen this in practice already as innovation has drastically reduced the cost of solar panels in the past years, making these technologies more affordable for Australian businesses and households,” he added.
