Green Transformation: How it’s Leveraging Technology to Address the Impacts of Climate Change

Written by
Justin Yue

What is GX?

In 2015, the United Nations adopted the Paris Climate Accords to reduce the impact of climate change by having countries agree to scale down emissions, thereby building resilience to the adverse effects of environmental change and promoting regional and international cooperation. Another example of climate related policy is the Kigali Amendment to the Montreal Protocol. 148 countries signed this international agreement, which aims to decrease the consumption of hydrofluorocarbon (a greenhouse gas). With the implementation of global frameworks such as the Kigali Amendment and the Paris Climate Accords, there now exists an exciting opportunity for GX startups to proactively address the various needs of green transformation stakeholders.

Core physical assets aside,
ultimately, we at Geodesic believe GX will be driven by technology — SaaS and data startups that are advancing the climate goals of businesses, governments and societies.

These SaaS tools offer digital platforms that promote collaboration amongst various stakeholders, enabling businesses, consumers and government organizations to align on common climate goals. GX is more than just about government organizations promoting green initiatives. These technologies help businesses become less reliant on traditional forms of energy and identify more sustainable ways of managing operations. GX is driven by strong private sector demand and interest in green initiatives, which has fueled the growth of startups in the space that are addressing the needs of the modern day enterprise and consumers looking to adopt green initiatives. In 2021, climate startups raised $40B in private funding.

What are different forms of GX?

Himanshu Gupta (CEO and Co-Founder of ClimateAI) spoke at the Geodesic Annual Forum in February 2023 in Tokyo.

How do countries around the world view GX?

Green transformation is top of mind for country leaders around the globe as nations consider the societal, economical and environmental impacts of adopting a more green strategy. Countries such as the United Kingdom, Iceland and the Netherlands are promoting innovative technology to help lower carbon emissions and transform current processes that are negatively contributing to the environment.

Let’s take a deeper dive into how Japan is promoting GX

Japan has limited natural resources and depends heavily on imported raw materials and energy. In 2021, the country ranked as the second-largest importer of natural gas. Given these circumstances, exploring alternative energy sources and adopting green transformation are top priorities for the Japanese government. Green transformation represents an exciting opportunity for Japan to be more politically and environmentally self-reliant by being less dependent on other countries’ resources.

Key Takeaways

  • Policy leaders across the globe are embracing and promoting GX given the current state of energy consumption. GX is a top priority for societies around the world.
  • Across all verticals (energy, food and land use, transportation, built environment, carbon, climate management and industrial) startups are capitalizing on the unique business opportunity presented by GX and are serving as catalysts for GX innovation. Whether it be helping businesses monitor ESG standards or holding various stakeholders accountable for carbon emissions, startups are spearheading innovation within green transformation.
  • GX is in early innings and there are various verticals such as energy, carbon and climate management that are ripe for disruption. While the GX category has yet to mature, funding in emerging sub verticals such as carbon (which includes use cases such as carbon removal and storage as well as carbon utilization) continues to increase, which underscores the importance and need of these tools.

What’s next?

GX startups will continue to play an important role in promoting a more green and sustainable future. Business demand for startup tools to help with GHG emissions reporting and green transformation will continue to grow, providing a large addressable market for startups in this space to scale. We are excited to monitor the role GX plays in shaping the way we as a society live more sustainably. If you are a founder of a GX SaaS business and are thinking of international expansion to APAC, please do not hesitate to reach out as we would love to chat.