Cleantech Ecosystems: Building Effective Cleantech Policies for Every Nation

Many countries are focused on reducing greenhouse gas emissions and adapting policies and industries to the impacts of climate change. Cleantech innovation will play a decisive role for the future, tackling environmental issues while also strengthening economies, building climate resilience and generating jobs for the next generation.

Governments are essential to progressing innovation, but with some nations having limited resources, it’s critical to focus on strategies that deliver the best impact. What works for one region may not work for another, so efficient cleantech policies must align with regional requirements. By collaborating with stakeholders, governments can create policies that support innovation and bring cleantech solutions to market.

Cleantech Group works with a range of nations across Africa, Eastern Europe and Asia to build a cleantech policy fit for national requirements. At the core of this effort is the Cleantech Policy Intervention Toolkit, consisting of a series of policy mechanisms applied by leading cleantech ecosystems worldwide.

The toolkit comprises four key areas, including:- Early-stage innovation, Demonstration & Commercialisation, Scaling & Internationalisation, Gender & Youth. While each mechanism has proven to be effective, they require adaptation to meet each country’s specific needs and stage of development.

Evaluating the ecosystem and policy maturity

With limited resources, governments must ensure they make smarter decisions, creating supportive policies that align with their cleantech ecosystem’s current condition. For example, a deployment mandate could encourage demand for a mature technology, but if the technology is in its infancy, those resources could be more effective on de-risking R&D and commercialisation efforts.

To make the right decisions, governments must be clear about the existing startups and their stage, which policies are already in action and how effective they’ve been. For example, Turkey has a progressive cleantech ecosystem, with a set of cleantech clusters spread across the nation. In the last few years, Turkey experienced the emergence of 155 cleantech startups and $138 million in early-stage VC funding. The policy priority is to support these startups to commercialise and scale. In contrast, countries like Cambodia paint a very different picture. Over the last five years, only about 30 cleantech startups emerged, generating around $10K in early-stage VC funding. The Cleantech Group highlighted that only 7 of the 26 recommended early-stage policy mechanisms were implemented.

Identifying what works best for each nation

Impactful and effective policy interventions are dependent on the context of each nation, from a political, economic, social and cultural perspective. Nations will take a different approach towards mandate and show a preference towards incentive-based approaches or prioritise the expansion of existing mechanisms.

Building an ecosystem around the next stages

Determining the best policy is only the start. A successful cleantech ecosystem isn’t just created through implementing the right policies. It requires collaboration, engagement and shared ownership. This means bringing the right people in, identifying the challenges and possible barriers, defining the goals, timelines and responsibilities.

For some countries, delivering the most impactful outcomes may not necessarily be associated with a specific policy, but rather gathering the right people together to implement action. These types of relationships are the building blocks for delivering long-term cleantech success. They foster trust, promote innovation, and pave the way for a more sustainable and equitable future. Every nation can build a cleantech ecosystem, but success depends on delivering policies that align with regional conditions, engaging with stakeholders and following best practices. By applying a structured, collaborative approach, governments can enable the transformative potential of cleantech for national economies, their people and the planet.