With its dynamic economies, expanding green infrastructure, and climate-vulnerable geography, the region stands at the forefront of one of the greatest transitions of our time. From solar startups in Vietnam to EV unicorns in Indonesia, climate innovation is accelerating across sectors and fast.
But numbers tell the story best. From massive clean energy investments to the surging electric vehicle market and nature-based solution potential, the ASEAN climate tech ecosystem is reshaping what’s possible for both planet and profit.
Here are 10 market-defining metrics you need to know if you want to understand and act on the future of climate tech in Southeast Asia.
Southeast Asia is rapidly emerging as a critical hub for climate technology, showcasing immense potential for investment, innovation, and impactful solutions. Far from a nascent player, the region is a dynamic ecosystem where climate vulnerability intersects with unparalleled economic opportunity, driving a transformative shift towards a sustainable future. The following ten signals, underpinned by robust data and growing momentum, demonstrate why Southeast Asia is unequivocally the next big thing in climate tech.
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The climate tech market across Southeast Asia and India was a substantial $102 billion in 2023 and is projected to skyrocket to $350 billion by 2030, representing an impressive compound annual growth rate (CAGR) exceeding 20% [1]. This explosive growth is more than just a numerical expansion; it's deeply rooted in the region's demographic dividend, rapid urbanization, and an escalating energy demand driven by burgeoning industrialization and a rising middle class. Unlike developed economies burdened by legacy infrastructure, Southeast Asia has the unique opportunity to "leapfrog" traditional, carbon-intensive development paths. Governments across the region are increasingly prioritizing sustainable growth, implementing proactive policies and incentives that attract green investment and foster local innovation. This confluence of factors makes the region a focal point for global decarbonization efforts, signaling strong investor confidence and strategic relevance.
In 2024 alone, Southeast Asia attracted a remarkable $26 billion in investments across clean power, alternative fuels, and end-use decarbonization technologies [2]. This significant financial flow reflects a decisive and accelerating shift away from fossil fuel dependency, a historically dominant energy source in many regional economies. Countries like Vietnam, Indonesia, and the Philippines, once heavily reliant on coal, are now actively embracing renewable infrastructure, driven by energy security concerns, falling technology costs, and international climate commitments. This investment surge is crucial not only for reducing emissions but also for creating green jobs, enhancing energy independence, and building more resilient power grids in a region highly susceptible to climate impacts. It underscores a fundamental readiness to transition towards a cleaner, more sustainable energy future.
By 2024, Southeast Asia and India collectively accounted for 7% of global climate tech investment, a clear indicator of the region's rising prominence on the international stage [3]. Within ASEAN, Indonesia has emerged as a powerhouse, attracting an impressive 67% of all climate tech funding, largely propelled by its rapidly expanding electric vehicle (EV) sector and innovative smart farming initiatives. As global investors, increasingly seeking scalable green opportunities beyond the saturated markets of the U.S. and Europe, turn their gaze towards emerging economies, ASEAN stands out as a key frontier. Its diverse economies, large addressable markets, and growing appetite for sustainable solutions make it an attractive destination for impact-driven capital and technological deployment.
The electric vehicle (EV) market in Southeast Asia is experiencing one of the world’s fastest expansion rates, characterized by exceptional CAGRs: 45% for four-wheelers and an even higher 53% for two-wheelers through 2030 [4]. This surge is multi-faceted, fueled by rising fossil fuel prices, which make EVs economically more attractive, and robust supportive policies from governments actively promoting electrification. Furthermore, the region is witnessing a dynamic influx of new EV startups, from local innovators to international players, alongside a flourishing ecosystem of battery technology developers. Given the pervasive use of two-wheelers in many Southeast Asian cities, the electrification of this segment holds immense potential for reducing urban air pollution and decarbonizing daily commutes, signalling a profound shift in urban mobility.
Of the top 50 climate tech startups in Southeast Asia, an overwhelming 62% are headquartered in Singapore [5]. This concentration is no accident. Singapore has meticulously cultivated its reputation as a premier financing and regulatory hub in Asia, attracting deep innovation capital and fostering a conducive environment for green enterprise. The city-state's stable political landscape, transparent legal framework, highly skilled talent pool, and proactive government initiatives—such as the Singapore Green Plan 2030 and significant investments in research and development—make it the undisputed beating heart of the region’s green startup ecosystem. Its influence, however, extends far beyond its borders, with Singaporean innovation and investment capital consistently rippling across neighboring countries, acting as a crucial enabler for regional climate tech growth.
Reflecting the region's economic structure and urgent environmental needs, 42% of Southeast Asia's top climate startups operate within the agriculture and food sectors [5]. These innovators are primarily focused on developing sustainable inputs, drastically reducing food waste, and implementing precision farming techniques. This strong sectoral presence is critical for a region where agriculture plays a vital economic and social role, employing a significant portion of the population and contributing substantially to national GDPs. Decarbonizing food systems in Southeast Asia is paramount not only for mitigating climate change but also for ensuring long-term food security, enhancing farmer livelihoods, and preserving crucial biodiversity. Innovations range from alternative proteins and vertical farming to blockchain-enabled supply chain transparency and smart irrigation systems, addressing both efficiency and environmental impact.
The emergence of climate tech unicorns signals a maturing ecosystem capable of delivering scalable and highly impactful solutions. The region proudly counts eFishery, an Indonesian smart aquaculture startup, among its climate tech unicorns, having achieved this status in 2023 [6]. eFishery's success in leveraging technology to revolutionize shrimp and fish farming demonstrates the potential for homegrown innovations to achieve significant commercial scale while addressing critical environmental and social challenges. While other companies, including those in the EV charging infrastructure space like Star Charge, are substantial players, eFishery's story provides a clear example of climate-focused technology reaching a billion-dollar valuation in Southeast Asia, inspiring further investment and entrepreneurship in the sector.
Vietnam has rapidly emerged as a leading clean energy technology manufacturer in ASEAN, particularly excelling in the production of solar panels and wind turbine components [7]. Its strategic geographic location, competitive labor costs, and proactive government policies promoting renewable energy development have positioned it as a critical node in the global green supply chain. Vietnam's ability to efficiently scale manufacturing processes for key renewable energy technologies makes it an indispensable partner for countries worldwide seeking to accelerate their energy transitions. This manufacturing prowess not only contributes significantly to Vietnam's economic growth but also solidifies Southeast Asia's role as a vital contributor to global decarbonization efforts, ready to meet growing demand from Europe, the U.S., and other decarbonizing economies.
By 2030, Southeast Asia’s voluntary carbon market is projected to reach an impressive valuation of $30 billion [8]. This significant potential is driven by a twin force: the increasing number of corporate net-zero commitments from multinational corporations and the active development of government-backed trading platforms across the region. Countries such as Indonesia, Vietnam, Malaysia, and Singapore are diligently working to establish national registries and robust protocols to enhance the credibility, transparency, and liquidity of their carbon markets. This development is crucial for attracting investments into carbon sequestration and reduction projects, particularly those involving nature-based solutions, and for channeling finance towards a just energy transition.
Despite covering just 0.7% of the global land area, Southeast Asia accounts for a remarkable 29% of the world’s cost-competitive potential for nature-based solutions (NbS) [9]. This includes critical initiatives such as reforestation, mangrove restoration, peatland rewetting, and soil carbon projects. These vital ecosystems possess an immense capacity to mitigate up to 21.7 Gt CO₂e annually, offering a powerful, natural defense against climate change. However, business models to effectively scale these solutions are still relatively nascent, presenting a massive "white space" for innovation, investment, and policy development. The region's rich biodiversity and significant natural capital make it a global hotspot for NbS, offering co-benefits that extend beyond carbon sequestration to include biodiversity protection, improved water quality, and enhanced community livelihoods.
What these metrics collectively reveal is more than just market momentum—they reflect a pivotal transformation underway across Southeast Asia. The region is uniquely positioned at the intersection of acute climate vulnerability and unparalleled climate opportunity. Its diverse economies, rich natural resources, young and dynamic populations, and growing technological adoption create a fertile ground for innovation in every facet of climate tech.
From electric vehicles and advanced energy storage systems to sustainable biotechnologies, circular economy solutions, and sophisticated nature-based approaches, startups and established companies across the region are innovating at an accelerating pace. However, no single startup, investor, or government can fully realize this potential in isolation. To truly unlock and scale the region's climate tech capabilities, a concerted effort is required, demanding bold and patient investors, consistent and supportive policy frameworks, inclusive innovation networks, and robust platforms that unify this fragmented yet incredibly promising ecosystem.
Challenges remain, of course. These include bridging funding gaps, particularly for early-stage ventures, ensuring policy consistency across disparate national contexts, addressing infrastructure deficits, and nurturing a deeper talent pool in specialized climate tech domains. Furthermore, ensuring equitable growth and integrating local communities into green value chains will be critical for long-term success and social acceptance.
The Climate Hero Club, among other initiatives, embodies this spirit of collaboration. By bringing together diverse stakeholders—investors, startup founders, corporate innovators, policymakers, and climate enthusiasts—it aims to foster a connected and synergistic environment. This is not merely about tracking the next wave of climate solutions; it is about actively building the network and facilitating the partnerships that empower them to rise, collectively steering Southeast Asia towards a resilient and sustainable future.
The moment for action is now. The signals are clear, the potential is immense, and the need is urgent. Joining this movement, connecting with other climate heroes, and contributing to the collaborative fabric of Southeast Asia's climate tech ecosystem is an invitation to be part of one of the most defining transformations of our time.
Climate Hero Club exists to bring this movement together. We’re not just tracking the next wave of climate solutions—we’re building the network that helps them rise.
Whether you're an investor, a startup founder, a corporate innovator, or just getting started in this space—this is your invitation.
🌍 Join the movement. Connect with other climate heroes. Let’s build Southeast Asia’s sustainable future—together.
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[1] PwC. "State of Climate Tech 2023: Unlocking the climate tech investment imperative." This comprehensive report provides an overview of global and regional climate tech investment trends and market size estimations. Specific regional breakdowns for Southeast Asia and India contribute to these figures. https://www.pwc.com/gx/en/industries/energy-utilities-resources/future-of-energy/state-of-climate-tech-report.html
[2] International Energy Agency (IEA). Southeast Asia Energy Outlook 2024. The executive summary and key findings sections of this report detail the significant investments required and already flowing into clean energy sectors across the region. https://www.iea.org/reports/southeast-asia-energy-outlook-2024
[3] HolonIQ. "2023 Southeast Asia Climate Tech 50." This report provides specific data on climate tech VC funding in Southeast Asia, including the percentage of global funding and Indonesia's leading share. https://www.holoniq.com/notes/2023-southeast-asia-climate-tech-50
[4] Krungsri Research (Bank of Ayudhya). "EVs in ASEAN Thailand vs Indonesia: Leading and Rising EV Production Hub." This industry outlook, citing analysis from BCG, provides the specific Compound Annual Growth Rates (CAGRs) for EV expansion in the ASEAN market. https://www.krungsri.com/en/research/industry/industry-outlook/hi-tech-industries/electric-vehicles/IO/evs-in-asean
[5] HolonIQ. "2023 Southeast Asia Climate Tech 50." This report details the geographical distribution of top climate tech startups, highlighting Singapore's significant concentration, and also breaks down the sector focus, including the dominance of agriculture and food. https://www.holoniq.com/notes/2023-southeast-asia-climate-tech-50
[6] TechCrunch. "Indonesian aquaculture startup eFishery lands $200M to expand in Asia." This article confirms eFishery's Series D funding round in 2023, which resulted in its unicorn valuation. https://techcrunch.com/2023/07/26/indonesian-aquaculture-startup-efishery-lands-200m-to-expand-in-asia/
[7] The Diplomat. "Why Vietnam Is Cutting Down Payments to Renewable Energy Developers." While not providing a specific global percentage, this article discusses Vietnam's rapid expansion in renewable energy and its significant installed capacity, indicating its leading role in manufacturing and deployment in the region. https://thediplomat.com/2025/06/why-vietnam-is-cutting-down-payments-to-renewable-energy-developers/
[8] Reuters. "Southeast Asia's carbon markets see nascent steps for growth." This article references the significant potential and ongoing developments in carbon markets across the region, aligning with projections from various consulting firms. https://www.reuters.com/markets/commodities/southeast-asias-carbon-markets-see-nascent-steps-growth-2023-11-09/
[9] Fairatmos and BCG Report. "Fairatmos and BCG Report Uncovers Climate Technology in Southeast Asia's Role in Unlocking the World's Carbon Sink." This report specifically highlights Southeast Asia's significant potential for carbon offset supply through nature-based solutions, including the 0.7% land area, 29% cost-competitive potential, and potential annual carbon mitigation figures. https://www.fairatmos.com/blog/fairatmos-and-bcg-report-uncovers-climate-technology-in-southeast-asia-role-in-unlocking-the-world-carbon-sink
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