Drone photo of Ho Chi Minh City, Vietnam.

Ho Chi Minh City, 30 September 2024 – Vietnam’s rapidly growing climate tech startup ecosystem secured US$92.6 million in cumulative financing for 49 startups between 2015-2023, according to the first report to map the growth of the country’s funding ecosystem. 

The Vietnam Climate Tech Ecosystem report released today by New Energy Nexus and Clickable Impact with support from the Swiss Entrepreneurship Program (Swiss EP, shows that there is huge room for growth as climate tech funding contributed only four percent of Vietnam’s total venture capital investment in 2023—well below the global average of 10 percent.

“Vietnam witnessed a remarkable acceleration in investment from 2021-2023, with funding for climate tech startups averaging 365 percent growth year-over-year,” said Thao Tran, country head of New Energy Nexus Vietnam, one of the few organizations building a clean energy innovation ecosystem to support climate startups. “This shows that there’s a strong ecosystem to support clean energy innovators to develop their ideas, but that there’s a funding crunch when it comes to commercialisation and deploying this tech where it’s needed most,”

“We see great room for entrepreneurial support organizations like New Energy Nexus to help Vietnam’s climate tech entrepreneurs build more commercially sound businesses, improve their investment readiness, and connect with both domestic and international capital,” said Jason Lusk, managing partner of Clickable Impact.

Key findings from the report:

• Among the 49 funded startups, 76 percent have been founded since 2019.
• Most deals have been early-stage, with seed and Series A funding comprising 47 percent of the deal count. Only two startups have graduated to Series B, a funding round that signals a startup’s readiness to scale.
• Most climate tech startups operated out of Vietnam’s largest cities: Ho Chi Minh City (65.3%) and Hanoi (26.5%).
• Farming and food production startups raised 48.4 percent of all climate tech funding in Vietnam.

Although funding for the circular economy and carbon sectors remains limited, there is an emerging trend marked by an increasing number of startups in these areas. This aligns with the growth in grant funding, which could lead to a higher number of investable startups in the next business cycle.

Furthermore, while many startups and investors remain optimistic about fundraising, a gap persists between investable startups and investors with a deep understanding of the market and the specific challenges faced by early-stage ventures.

Vietnam is highly vulnerable to climate change; according to the World Bank, the country faces potential economic losses of up to 12-14.5 percent of its annual GDP by 2050.¹ Climate tech entrepreneurship is critical in mitigating Vietnam’s greenhouse gas emissions and empowering the country’s communities and industries to build climate resilience.

Notes:

[1] World Bank (2022). Vietnam Country Climate and Development Report.

The 3GE Team, [RE]Power Hackathon First Place winner, presents their clean energy policy proposal.

Announced at New Energy Nexus Indonesia’s [RE]Power event, the policies will be shared with policy leaders who will formulate the upcoming 2025-2029 RPJMN (National Medium-Term Development Plan).

• First place: Encouraging private sector engagement through efficiency and transparency in a public-private partnership for renewable energy infrastructure project in Indonesia | 3GE Team (Nain M. Farchan & Elmaira Ferlita S) – Universitas Jember
• Second place: Establishing a Coordinating Ministry for Climate Change as a Solution for Data Integration and Roadmap Synchronization to reach Indonesia’s Net Zero Emission Goals | Invaluable Team (Azaria Ahmad Haykal, Gema Wachid Aryasatya, Rafi Ramadhan Seba) – Institut Teknologi Bandung & University of Tokyo
• Third place: Proposing strategies to strengthen the clean energy research and development ecosystem in Indonesia | Arindama Team (Rizka Fitria Utami & Herlina Pebria) – Universitas Sultan Ageng Tirtayasa
  These teams were selected after completing a rigorous bootcamp, developing capstone projects, and participating in intensive mentoring sessions. The winning teams will share a total prize of IDR45,000,000.

“Young people are not only one-quarter of the Indonesia’s population, but they’re also at the forefront of climate change impacts. That’s why we’re showcasing their ideas and solutions, providing them the opportunity to collaborate with entrepreneurs, researchers and policymakers to influence future energy policy,” said Diyanto Imam, Program Director of New Energy Nexus Indonesia. “We’re so proud of the finalists and all the participants who demonstrated unyielding optimism to solve some of the world’s most intractable problems.”

According to the first-place winner 3GE Team, there are several key issues in Indonesia’s clean energy policies, particularly in relation to Public-Private Partnerships (PPP). These include a lack of transparency and persistent corruption within renewable energy projects, unclear risk-sharing mechanisms between the public and private sectors, and the absence of compelling incentives that limit the appeal of green energy initiatives under the current PPP framework.

“To address these challenges, we recommend improving public transparency and accountability through open reporting on project implementation, establishing clear risk-sharing mechanisms to strengthen public-private partnerships, and developing more attractive programs for investors with effective financing strategies,” said Elmaira Ferlita S, a member of the 3GE Team. “These measures are essential for driving sustainable development in Indonesia’s clean energy sector.”

“I never realized how much goes into creating a policy and how deeply it impacts our daily lives. While I’m thrilled that our team won, I’m even more grateful for the knowledge and networks we’ve gained through the [RE]Power Hackathon, especially the intensive discussions we had with our mentors and industry experts,” added Nain M. Farchan, also from the 3GE Team.

New Energy Nexus (NEX) Indonesia’s [RE]Power Hackathon is the country’s first youth-driven energy policy hackathon designed for young innovators to develop forward-thinking policies that will catalyze the adoption of clean technologies across Indonesia.

“I am pleased to see our youth dedicating their minds to creating policies that will drive Indonesia toward achieving its sustainable energy transition goals. The fact that dozens of young people applied to the [RE]Power Hackathon shows their deep interest in and commitment to these critical issues,” said Ir. Senda Hurmuzan Kanam., M.Sc on behalf of Eniya Listiani Dewi, Director General of New and Renewable Energy. “As someone who helps shape regulations, it gives me peace of mind knowing we are not alone in this journey. When my time ends, I am confident that our future leaders will take the reins and ensure Indonesia’s continued progress with just policies.”

The [RE]Power Hackathon also welcomed five startups from Bali showcasing products ranging from waste-derived innovations to eco-apps aimed at promoting sustainable tourism: Ambawarna, Kishara, Decoco Luminer, Ecous, Kelana Terra.

[RE]Power is proud to collaborate with eleven youth-led organizations: BEM FH Universitas Indonesia, Climate Rangers Jakarta, Economy for Ecology, Environmental Law Society FH Universitas Indonesia, Green Welfare Indonesia, School of Applied STEM Universitas Prasetya Mulya, Society of Renewable Energy ITB, Society of Renewable Energy ITK, Society of Renewable Energy Universitas Indonesia, Teens Go Green Indonesia, and Mindworks Lab. NEX Indonesia is also grateful for the support of our media partners, Changemakr Asia, Katadata.co.id, Katadata Green, and Zona EBT.

The support from Milkywire, the Ministry of Energy and Mineral Resources, and the Ministry of National Development Planning has been critical in NEX Indonesia’s efforts to foster a vibrant cleantech ecosystem in Indonesia.

Makati City, Philippines, 18 September 2024 — The Philippines currently has 91 clean energy and climate startups, representing a six-fold increase since 2020 (from 15), according to a new report, It takes a village: Growing an ecosystem to support Philippines’ clean energy startups, from New Energy Nexus. Of these startups, 18 have raised almost US$1.3 million.

“The Filipino clean energy innovation ecosystem has shown huge progress and promise in the past years, but the nascent space runs the risk of stalling because of lack of access to networks, funding, testing facilities, and skills training,” said Brenda Valerio, Country Director at NEX Philippines. “Local entrepreneurs are best placed to understand how to deploy solutions in their communities and transition our economy more equitably to clean energy. It really does take a village to build and deploy these solutions.”

The study also found that while these startups are mostly in Metro Manila (34.1%), entrepreneurs from Northern Mindanao (14.5%) and CALABARZON (16.5%) are carving up space in the industry.

Industries for climate and clean energy startup companies and enterprises

Nearly half of startups (49%) are in the renewable energy generation sector, while others are in the sustainable transportation / e-mobility sector,  energy access sector (both at 8%), and waste management (7%).

These developments are due in part to more opportunities for clean energy businesses to scale, with over 100 national energy policies and incentives easing the burden on entrepreneurs, increasing opportunities in the private sector, and incubator and accelerator programs run by organizations such as New Energy Nexus—which is still the only non-profit clean energy accelerator in the country. New Energy Nexus has directly supported over 90 percent of these startups since 2019.

Despite significant progress, the report outlines how public, private, and advocacy stakeholders can build an innovation ecosystem to support more thriving startups and accelerate the adoption and deployment of clean energy innovation.

• Among the gaps seen are in the public sector. Unstreamlined bureaucratic processes, lack of resources at the local level, and potential policy changes make it tough for many entrepreneurs to access the funding and incentive programs that the government provides. There is also a lack of research, testbeds, and facilities in the country that could accelerate the development of clean energy technologies.
• Another concern is private investments. Of the US$ 1.3 million in funding mentioned above, only 13 percent came from private loans and investments. Furthermore, some startups require substantial upfront investment,  yet many are not ready to meet the demand of managing large capital injections. This is where support from the private sector, government, and nonprofits is required—beyond early-stage funding, startups need to access venture capital and growth-stage funding in order to scale and access new markets.

“In my observation, most startups are not yet ready for the type of funding that’s currently available. We have to recognize that many of these companies are still at an early stage in their development,” said Rachel Santiago-Sacro of venture fund Clime Capital, which invests in sustainability and clean energy ventures. “It’s crucial that we provide support at every stage of a startup’s journey, not just when they’re ready for significant investment.”

• On the scarcity of capital, the report recommends experimenting with diverse funding mechanisms and de-risking strategies to create a more investor-friendly environment for both institutions and innovators. These include public-private partnerships, venture capital, and crowdfunding, which could boost financial support for energy innovation in the country.

Furthermore, the report calls for streamlining regulatory processes for ease of business, enhanced support on market access, integration of energy innovation and entrepreneurship topics in academic curricula, and fostering a community of various stakeholders to facilitate mutual learning.

“Many of these gaps could be filled by addressing fragmentation in the clean energy sector,” Valerio said. “Instead of working independently, government agencies, think tanks, and non-government organizations must collaborate to make processes more efficient for startups and to catch up with the country’s growing startup space.”