As Southeast Asia (SEA) rapidly rises as the world’s fourth-largest economy, the region faces a defining question: can its climate tech ecosystem mature quickly enough to meet net-zero goals by 2030? Optimism abounds with climate investment in the area, growing 15 per cent year-on-year from 2015 to 2023. Yet a staggering US$2.5 trillion investment gap remains.

At Echelon Singapore 2025, a panel of leading voices in climate innovation unpacked the opportunities and gaps that must be addressed to unlock a thriving climate tech ecosystem in SEA. It is widely known that the climate crisis is worsening, and SEA is highly vulnerable.

Rebecca Sharpe, Director of Better Earth Ventures, noted, “SDG 13, climate action, is actively regressing,” citing UN ESCAP’s 2023 findings. Yet she remains confident: “Innovation can and should play a critical role. We just need urgency and alignment.”

That urgency stems not just from deteriorating environmental metrics but also from Southeast Asia’s unique potential. With 34 per cent of the region’s population aged between 15 and 24, it is primed to lead in digital innovation, including climate tech. But potential alone is not enough.

Policy, regulation, and mindset in climate tech

A recurring theme among the panellists was the regulatory vacuum in the region. Sharpe pointed to Europe’s robust climate legislation, noting that such frameworks compel action.

“Without regulations, climate solutions are seen as ‘nice to have’, not must-haves,” she said. Singapore, often viewed as a regional leader, has a carbon tax but lacks enforceable climate mandates.

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Equally important is cultural context. Arka Irfani, CEO of Bell Living Lab, highlighted the irony of Asia’s historic sustainability practices giving way to growth-at-all-costs models. “The traditional mindset of being inclusive and mindful of future generations has been lost. We need to bring it back.”

Nicole Ngeow, Executive Director of the Prudence Foundation, offered a perspective from the philanthropic front lines. Her foundation supports community resilience in climate and health. But she stressed that innovation must be viable. “Philanthropy can fund early-stage pilots to derisk models, but there must be a pathway to sustainable business,” she explained.

This view aligns with emerging blended finance models, where philanthropic capital helps prove concepts, and commercial investors scale them. “It’s not an excuse to ignore market signals,” she added. “Startups must still demonstrate viable unit economics.”

Several speakers agreed that alignment across sectors—government, corporates, researchers, and startups—is key to scale. Irfani shared a powerful example: a three-month government-backed programme in Indonesia helped Bell Living Lab partner with over 100 farmers to convert coffee waste into sustainable materials.

“Alignment allowed us to scale from idea to impact,” he said. “But for long-term success, proximity to market demand is essential.”

Hyperlocalisation also emerged as a critical success factor. Sharpe noted that effective climate solutions often address specific local challenges—from mangrove restoration in Indonesia to nutrient-rich farming in India.

“Localisation doesn’t mean small scale. Often, these solutions are replicable across borders,” she said.

Developing transformative climate tech is one thing; communicating its value is another. Jatin Kumar, CTO of Xinterra, offered a masterclass in bridging the technical-to-practical divide. His AI-powered material innovation allows textiles to capture carbon dioxide, an idea that could sound esoteric.

Also Read: Why these startups focus on informal plastic waste workers in the fight against climate crisis

“Communication is everything,” Kumar said. “You must explain your technology in a way your audience understands—whether it’s a five-year-old or a textile manufacturer.” By translating emissions metrics into relatable impacts (“20 of these t-shirts equals the emissions offset of a tree”), Xinterra helps partners grasp both the science and the benefit.

Regarding funding, climate tech faces a structural challenge: its returns take time. “Investors don’t always get it,” Kumar said candidly. “Climate solutions aren’t instant wins. We need a shift from fast to slow money, like in biotech.”

Sharpe echoed this, noting that many generalist VCs exited the climate space post-pandemic due to longer timeframes and higher perceived risk. “We need new financial models that match the climate reality,” she said. Tools like the Asia Climate Lab, which maps active climate investors, are helping founders navigate this new terrain.

The panel concluded with a consensus: climate tech must move from fringe to front stage. “This isn’t just about branding,” Irfani noted. “For us, converting waste is the business model. For climate tech to thrive, authenticity matters.”

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