In an email interview, e27 asked TRIREC Partner Mike Lim about the state of climate tech investment in Southeast Asia (SEA) today. According to him, the diversity of the region presents “both challenges and opportunities”.

Because of that, he stresses that understanding the specific contexts and challenges of each country is crucial for successful climate tech investments.

“Many governments in SEA have recognised the importance of addressing climate change and are committed to sustainable development goals. There are policies and regulations put in place to encourage the adoption of climate technologies and incentivise climate-friendly efforts. This presents an opportunity for climate tech startups to align with government priorities and access support and funding,” Lim says.

“Moreover, as SEA is exposed to a wide range of climate-related challenges, including rising sea levels, extreme weather events, deforestation, air pollution, and water scarcity, climate tech startups are well poised to address these specific challenges and create impactful solutions that resonate with local communities,” he continues.

“Lastly, SEA’s startup ecosystem has been flourishing in recent years, with a growing number of entrepreneurs and investors focusing on technology-driven solutions. This ecosystem provides a good grounding for climate tech startups to thrive, collaborate, and attract funding.”

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In terms of challenges, like many other verticals, Lim points out that climate tech investment has also been affected the ongoing funding winter with its market fluctuations and changing economic conditions.

“However, we have also observed that interest in climate tech investments remains buoyant, with investment continuing in the space, albeit at more reasonable valuations compared to about two years ago,” Lim says.

This is why Singapore-based TRIREC remains optimistic about the prospect of climate tech investments in SEA.

“The urgency and importance of addressing climate issues have not diminished, and there is a persistent global commitment to decarbonisation and sustainability. As such, we believe that the enduring interest in climate tech and the growing awareness of environmental issues will continue to provide a strong foundation for continued investment in this sector,” Lim stresses.

How TRIREC supports climate tech startups

When it comes to supporting startups as an investor, Lim explains that TRIREC recognises the barriers faced by climate tech startups and are actively working to support them in overcoming these challenges.

“Drawing from our own entrepreneurial experiences and diverse backgrounds, we also provide valuable insights and strategic direction to help these startups navigate the complexities of the market,” says Lim.

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“Moreover, we have an extensive network and connections within the climate tech ecosystem that we can tap into to facilitate collaboration between startups and industry partners. Our strategic partnership with Pacific Channel is one example. We believe that such collaborations can lead to greater market access for startups aiming to make a broader impact.”

As a venture capital (VC) firm, TRIREC focuses on decarbonisation investments with a focus on five verticals: Food and agriculture, mobility, buildings, industries and energy.

According to the firm in a statement, through its expertise in analysing decarbonisation technologies, TRIREC maximises climate impact and business gains by focusing on investing in exceptional entrepreneurs whose innovations accelerate the reduction, prevention or sequestration of greenhouse gas emissions.

It has 20 portfolio companies from two funds, with three of them becoming unicorns.

“This year marks an exciting and transformative period for us as we embark on two significant fundraising initiatives. The first is TRIREC Venture II, a continuation of our early-stage decarbonisation strategy with a global mandate. We hope to raise between US$150 million to US$200 million to build on our previous successes,” Lim explains the firm’s upcoming plans.

“The second will be Energy Ignition Venture, which is a groundbreaking collaboration with INNOPOWER, a Thai-based energy innovations company which is formed through a joint venture between three of Thailand’s leading energy companies. This is a US$100-million growth stage fund that will invest in startups with existing revenue traction and help them accelerate their growth trajectory,” he closes.

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Image Credit: TRIREC

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