Technology designed to boost extreme weather resilience is expected to grow ninefold over the next decade as Australian businesses focus on addressing the impacts of climate change, according to Commonwealth Bank (CBA).
Climate technology is a group of technologies focusing on addressing climate change – from electric vehicles to new innovations such as low-carbon cement and tools to measure and report on carbon emissions.
Alex Matthews, general manager of climate strategy at CommBank, said the rise of climate technology will provide Australian businesses with opportunities to transition to net zero and drive economic 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,” he said.
CBA's latest research found that Australian businesses have focused more on transitioning to net zero, with nearly 58% already adopting a sustainable initiative such as reducing carbon emissions, green energy initiatives, sustainable waste management, and reducing water usage.
The research also found that 49% of Australian businesses plan to adopt further sustainable measures. However, 60% of businesses pointed to costs and lack of funding as primary barriers to establishing and implementing these measures.
“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 said. “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.”
