3 Southeast Asian climate tech companies for investors to watch

Published on November 12, 2024

2023 was the hottest year on record, underscoring a looming crisis for regions like Southeast Asia. Local climate investors estimate up to 37% of Southeast Asia’s GDP could vanish if global temperatures rise to 3.2°C by 2100. As the world’s fourth largest energy consumer, Southeast Asia’s reliance on coal-derived fossil fuels has significantly escalated its carbon emissions, positioning it among the world’s top emitters. 

Yet, there’s a silver lining: proactive climate action today could unlock over US$4 trillion in macroeconomic upside and create more than 230 million new jobs across the region by 2030. Despite Southeast Asia’s venture and climate sectors raising US$10.4 billion in 2022, a significant funding gap persists, spelling opportunity for global investors. 

With ambitions to cut over 33% of its greenhouse gas emissions by 2030, Southeast Asia faces the challenge of aligning rapid economic growth with its climate objectives. The region estimates a need for US$2 trillion to meet its 2030 climate goals. 

Fortunately, a handful of climate tech ventures in Southeast Asia are gaining meaningful traction, showing promise for commercial success, and leading the charge toward a more sustainable future. In no particular order, here are three climate tech companies in the region that global investors should keep an eye on.

Accacia

The real estate and infrastructure sectors, which account for 40% of global greenhouse gas emissions, are facing increased pressure to significantly reduce their carbon output. This effort is part of a broader goal to keep global warming within 1.5˚C above pre-industrial levels, pushing the industry toward a significant transformation in a market valued at over US$50 billion.

Governments are setting ambitious targets for zero emissions by 2050, introducing measures like higher carbon taxes and tougher construction regulations. These changes are making it more expensive to build and operate properties, while also shifting what investors look for—now, properties need to be both profitable and environmentally friendly.

Accacia, operating out of Singapore and India, offers a tech solution for large property owners to track their carbon impact effortlessly. With prestigious early clients such as AECOM, Allianz, UOB, and others, and now implemented across more than 20 million square feet of property monitored in Asia, Accacia is currently reaching into new international markets in Southeast Asia, the Middle East, and North America.

Koltiva

The global supply chain management market, valued at US$27.2 billion in 2022, is expected to surge to US$75.6 billion by 2032, growing at a CAGR of 10.9%. The sector is evolving rapidly, with increasing demands for transparency and sustainability worldwide.

Founded in 2013, Indonesia-based Koltiva operates a robust online and offline system that promotes the development of eco-friendly, traceable global supply chains. In addition to increased access to global sales and financial empowerment for smallholder farmers in emerging markets, Koltiva stands out with its ‘boots on the ground’ approach, employing hundreds of field agents who personally visit and assess farms, ensuring their cultivation processes meet stringent sustainability standards.

In its pursuit of enhancing supply chain transparency, Koltiva has pioneered software that tracks agriculture products from seed to table, making the entire process visible to buyers. The tech is vital for tracing goods back to their roots, which is crucial for global companies needing to comply with regulations like the EU Deforestation Regulation. With a growth rate of 1.8x in 2023 and projections of 2x to 2.5x in 2024, Koltiva is on track to achieve imminent profitability.

Xurya

Founded in 2018, Xurya has quickly grown to become Indonesia’s leading commercial and industrial solar energy player. It was the first company in the country to offer rooftop solar installations without an upfront cost, significantly boosting the adoption of solar energy across the market. 

Xurya has consistently led innovation in the sector, introducing the use of IoT for remote management of solar facilities and integrating machine learning into solar operations to enhance efficiency.

Xurya currently has over 170 solar projects across the nation with a total installed capacity of 100 MW. These projects help cut more than 152,000 tons of CO2 emissions annually and have contributed to the creation of over 1,600 green jobs locally. The company has successfully raised US$90 million in funding to date, with its latest US$55 million investment coming from prominent development finance institutions including Norfund, Swedfund, and BII, highlighting its pivotal role in Indonesia’s shift toward renewable energy.