Pwc Report Shaped The Current And Future Plans To Invest In Climate Technologies

The five key opportunities for the region to support the purpose of taking this leadership position in climate technology are solar and wind energy, energy to food, green hydrogen production, recycled plastics, and waste to energy, according to the new report, which shapes the Middle East's current and future plans to invest in climate technologies.

As the report mentioned, the challenges of climate change issues are critical for the Middle East due to the region’s vulnerabilities, such as its infertile landscapes and low water levels due to multi-year droughts, frequent sandstorms, and rapidly rising temperatures, which are a growing reality for the region’s 400 million people.

Dr. Yahya Anouti, PwC Middle East ESG Leader, said, "Our analysis shows that there is a growing appetite for climate tech investment in the Middle East, in contrast to a more subdued global picture, where overall venture funding for climate tech start-ups fell by $52 billion over the first three quarters of 2022."

"While our region continues to make substantial inroads on climate technology, to become key players in this space, countries will need to invest in research as well as pioneer technologies locally, such as cost-effective electrolyzes, bioreactors, air capture, and many other innovative technologies that can help mitigate the effects of climate change."

Jon Blackburn, Partner, Energy, Utilities, Resources, and Industrials, PwC Middle East, stated, "For the Middle East to assume a leadership role in climate technology, it will require focus, increased funding, and changes in regulatory and reporting requirements to enable the growth of a climate technology ecosystem."

He further added, "Beyond the existential questions that climate change poses, governments, companies, and individuals need to look at the opportunities that green technology presents."

"Reorienting local economies to become greener and developing the critical capabilities to help the world address climate change will not just result in economic benefits but can position the region as a new global green hub,"  according to the report.

Ultimately, the report indicates the direction of the climate tech investments flow in the Middle East towards the development of technologies that focus on priorities such as greenhouse gas (GHG) emissions, with two-thirds of regional investment going into sectors that generate 85% of GHG emissions, in contrast to global investment flows, which appear to be less targeted.

According to the report, success in using the opportunities that leading in climate tech brings requires a holistic and mission-oriented approach that joints on a number of factors, including the coordination and unity of efforts across governments and the private sector, the launch of a dedicated regional climate-tech fund, de-risking through longitudinal collaborations, prioritising climate tech R&D, pivoting existing technical capabilities, creating an enabling regulatory ecosystem, and galvanising young people into climate action.

 By Sumita Pawar