Reshaping Funding for Climate Innovation

Entrepreneurs are building the climate solutions we desperately need, yet they’re still struggling to access the right kind of capital. Climate finance is growing, but it’s not always structured in a way that actually works for early-stage startups tackling massive global challenges. The result is that many promising climate solutions in the countries are often underfunded and struggle to scale. This session will dig into the real issues on why climate startups in emerging markets face funding bottlenecks, what investors should be doing differently, and how we can rethink investment strategies to unlock the full potential of climate innovation. Emerging markets, highly susceptible to climate change, are underserved by traditional funding models, necessitating tailored investment strategies that address unique challenges such as lengthy development cycles and the need to modernize outdated industries. Investing in local climate entrepreneurs is crucial for both climate mitigation efforts. Notably, McKinsey and Bloomberg NEF estimate that over US$200 trillion is required for the green transition, with a significant portion allocated to tangible assets. Moreover, these numbers do not reflect funding needs for adaptation, which are more acute in these markets. This session seeks to explore and develop funding approaches that are not only effective but also equitable, ensuring that capital reaches the entrepreneurs poised to drive transformative climate solutions in emerging markets.