Globally, sustainable energy and low-carbon solutions top national and corporate agendas. For regional energy players, the time to commit to new, planet-friendly ventures is now.
While carbon-heavy technologies still have a role to play, green businesses are coming to the fore. In the past three years, the world has seen:
- More green unicorns. Over 25 green businesses have joined the global unicorn club, with combined valuations exceeding US $70 billion.1
- Increased green startup investment activity. There has been a more than 67 percent increase in deals since 2018, with a total of US $2 billion invested globally in sustainability-themed startups across 260-plus deals.2 Europe and North America currently lead in terms of investment size, with Asia rapidly catching up
McKinsey analysis finds that building on this potential, Asia could potentially see up to a ten-fold increase in startup activity over the next three to four years.
With advances in technology, financing, and regulatory policies, opportunities for building green businesses are more attractive than ever—and much of this momentum is concentrated in the energy industry. All that’s required is for Asian energy players (both established firms and startups) to seize the moment and apply the lessons learned globally.
Source: McKinsey & Company
Author: Gautam Kumra, Vivek Lath, Prabaharan Gopalan, and Anna Chua