How greentech becomes the solution to climate change to achieve net-zero emissions

The future of the global business landscape is increasingly centered around sustainability and environmental responsibility, as awareness of ecological issues grows among communities worldwide. The impacts of climate change, ranging from rising global temperatures to extreme weather events, have underscored the urgent need for action to safeguard humanity and the planet. 

Reflecting this global priority, 196 countries agreed at the UN COP 26 (Climate Change Conference 26) in 2021 on the target of achieving NZE (Net Zero Emissions) by 2050. NZE has a mission to decrease the greenhouse gases released into the atmosphere, either naturally or through technological means. The aim is to limit global warming to a maximum of 1.5°C between 2030 and 2050 to mitigate the most severe consequences of climate change.

Indonesia, as one of the highest contributors of global greenhouse gas emission, has a vital role to play in this collective effort. The journey to NZE 2050 requires participation from all parts of society—including government, corporations, investors, and startups to accelerate the transition toward clean energy and sustainable practices.

Among the most dynamic drivers of this transition are green technology startups (Greentech). These companies focus on creating solutions to reduce environmental damage and promote sustainability. Their innovations aim to cut CO2 emissions, minimize waste, protect biodiversity, and advance renewable energy. As environmental consciousness spreads, the number of greentech startups is growing rapidly, drawing attention and support from both private and public sectors.

Avina Sugiarto, Partner at East Ventures, emphasizes that the growth of greentech is not only driven by environmental need but also by technological advances. Many startups are incorporating data analytics, AI (artificial intelligence), and the IoT (Internet of Things ) into their models, creating more precise, effective, and scalable solutions. 

These technologies enable smarter energy systems, real-time monitoring of emissions, and more efficient management of resources, contributing to a greener economy.

From an investment perspective, the greentech sector is becoming increasingly attractive. Globally, funding for greentech startups reached about US$92 billion in 2024, up to 10% from the previous year. 

Southeast Asia is emerging as a key player in this landscape, with startups in the region securing approximately US$191 million in 2024. Impressively, more than 90% of this funding flowed into Indonesia, highlighting the nation’s growing importance in the regional green economy.

A few companies backed by East Ventures are driving this progress in Indonesia, such as Xurya and Jejakin, which are among those leading the charge. Their innovations exemplify how local entrepreneurs are addressing climate challenges while contributing to economic development.

“We believe that the commitment to seek collaborative solutions, along with contributions from all stakeholders, sends a positive signal for the future of the greentech sector,” said Avina.

In addition, initiatives like the Climate Impact Innovations Challenge (CIIC), Indonesia’s largest climate innovations tech platform, organized by East Ventures and Temasek Foundation, are part of these efforts to bring forward innovative, tech-driven climate solutions.

Since 2023, CIIC has successfully brought over 800 green innovators, serving as a catalyst for innovation and helping to accelerate the development of sustainable solutions. This year, CIIC 2025 will focus on three tracks, which include: Energy Transition, Sustainable Agriculture, and Circular Economy.

Submissions are still open until 25 June 2025. For more information, visit climateimpactinnovations.com.

This article is a summary of two articles. Read the original articles published at Kontan media and Kontan paper, on 26 May 2025.