“We must act now” – the Launch of the “Forum on Climate Tech Investments” at the Hamburg Sustainability Conference

On October 8, CATAL1.5°T hosted a high-level session at the Hamburg Sustainability Conference (HSC) 2024 with Mafalda Duarte, Executive Director of the Green Climate Fund, Ambroise Fayolle, Vice-President of the European Investment Bank, and Ingrid-Gabriela Hoven, Managing Director of GIZ.

Our highlight of our day at the Hamburg Sustainability Conference was the high-level panel discussion on "Financing Climate Innovations in Emerging Markets". The session organized by the CATAL1.5°T Initiative brought together influential key figures, resulting in an engaging and dynamic exchange of ideas addressing current challenges. Mafalda Duarte, Executive Director of the Green Climate Fund, underscored the urgency of leveraging early-stage technologies. “By 2050, an estimated 45% of greenhouse gas reductions will rely on technologies currently in the adoption phase,” Duarte noted. “To close this gap, we need to work on fostering ecosystems. Just like the CATAL1.5°T Initiative is already accelerating high-impact ventures by providing services to develop their business models and solutions and connect them to the market. Bringing different ecosystem actors together is crucial at this point.”

This matchmaking is also what Rogelio de los Santos, Managing Partner at Dalus Capital, emphasized: “We took the first CATAL1.5°T accelerator cohort from Latin America and let them present their solutions to investors. This is what you need to build an ecosystem, especially in an emerging market, which puts you in a context of restrictions.” Adding an entrepreneurial perspective, he talked about disruption in established industries: “It’s better not to compete but to disrupt.” This way, innovation can create adaption curves and impact – a critical aspect when it comes to climate ventures. “We are learning how to evaluate climate start-ups, which works differently to evaluating software companies. The timing and business models need to be assessed differently, with a focus on climate impact,” de los Santos added.

Ambroise Fayolle, Vice-President of the European Investment Bank, raised an important question about the distribution of investments: “Have we reached the tipping point where investing in green assets is increasingly more profitable than in fossil fuels?” Fayolle also emphasized the role of public-private collaboration: “The combination of private financing and public guarantees is pivotal to developing both large-scale projects and early-stage climate ventures.”

Moderator Alexandra Harbour from the Venture Climate Alliance led through a captivating discussion panel that addressed barriers like inadequate policy frameworks, the lack of innovative financial instruments, and the challenge of mobilizing private risk capital. The speakers called for action through policy improvements, financial mechanisms like blended finance, and stronger technical support to bridge these gaps and boost climate tech in developing regions. The perfect starting point for the introduction of our new event series.

Following the lively discussion at HSC, Ingrid-Gabriela Hoven, Managing Director of GIZ, announced the launch of the “Forum on Climate Tech Investments” which will be implemented by the CATAL1.5°T Initiative in the coming months. The global shift towards sustainable, green economies is not only critical to combating climate change, but also represents a multi-trillion-euro business opportunity. However, to seize this opportunity, the conditions for private sector engagement must be improved – the central purpose of this Forum.

“We can no longer afford to just talk about climate action, we must act now,” Hoven stated. “Together with IFC and national partners, we bring together key players such as policymakers, development banks, venture capital investors, and entrepreneurs to discuss current barriers, identify effective solutions, and develop recommendations for follow-up actions.” The Forum aims to address the challenges of climate tech investment in emerging markets, particularly the barriers to mobilizing risk capital.

Set to run through mid-2025, the Forum’s participants will focus on three key areas to enhance climate tech investments: improved policy environments, innovative financing mechanisms, and technical support. This strategic dialogue will likely include regional forums in Mexico, Colombia, Brazil and Senegal, each tailored to local contexts, to develop actionable solutions for reducing investment risk and boosting ecosystem resilience.

Hoven concluded the presentation of the “Forum on Climate Tech Investments” by calling for the necessary changes to be initiated together: “The Forum will expand on the discussions initiated here today. I invite and encourage all of you to actively participate in these discussions. Your input will be crucial in shaping actionable outcomes and scaling climate solutions in emerging markets.”

These outcomes of the regional forums will be synthesized into a comprehensive policy paper, which will be presented at the Hamburg Sustainability Conference in June 2025. This document will serve as a strategic guide for governments, financial institutions, and development organizations on scaling climate tech investments globally. The next HSC will revisit these developments, offering an update on progress made and solidifying climate tech investment as a critical component of the global climate agenda.

With the “Forum on Climate Tech Investments” underway, CATAL1.5°T continues to lead efforts to unlock the potential of climate tech in emerging economies – driving collaboration and fostering the conditions necessary for impactful innovation.

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