In The News
29 Apr 2024
In November 2023, as part of a collaboration between EIT Climate KIC and IDB Lab, 26 Entrepreneurship Support Organisations (ESOs) from 11 countries in Latin America and the Caribbean (LAC) were selected to participate in a programme aimed at building their capacity for climate innovation. The primary objective is to equip them with the knowledge, skills, and tools necessary to accelerate climate technology solutions.
In March 2024, the 26 organisations concluded the first phase of the programme, which included attending specialised capacity-building and knowledge transfer modules led by experts from EIT Climate KIC. The training focused on essential areas such as Climate Entrepreneurship, Systems Change, Financial Sustainability for ESOs, Gender Mainstreaming, and Impact Assessment. Furthermore, this phase allowed participants to meet and learn from each other through facilitated sessions that emphasised sharing and best practices. This fostered a community spirit and encouraged collaboration within the region.
Challenges and Prospects for LAC Climate Financing
Four months of regular meetings and active collaboration also highlighted both the obstacles and prospects within the LAC ecosystem, especially considering its developing climate space. European climate start-ups raised over $20B in 2023, with the climate venture capital (VC) share reaching a record high of 43%(1). However, climate financing in LAC, though expected to grow significantly in the coming years, remains limited and scarce. Most VC funding still targets the region’s essential needs like infrastructure, telecommunications, and renewable energy – the last of which has seen a significant investment boost(2).
This was echoed by the ESOs, who mentioned that: “probably the biggest challenge they face is to carry out ClimAccelerator programmes given the lack of proper funding.” The network is still underdeveloped, and it is difficult to access funds from the private sector, and even more so from the public sector. If you are a VC, investor, advisor or mentor in the climate space, we invite you to contribute towards strengthening the ecosystem by signing up to our ecosystem contact list.
Building on the critical need for funding, many ESOs are turning their focus towards sectors where LAC countries have unique strengths and urgent needs. This includes prioritising programmes in agriculture, biodiversity, bioeconomy, and circular economy, directly responding to the region’s geographic vulnerabilities to climate change. Intriguingly, seven ESOs have already voiced a keen interest in crafting initiatives specifically aimed at preserving the Amazon rainforest, displaying a targeted approach to leveraging local expertise for global impact.
In April 2024, the participating organisations showcased their ClimAccelerator plans before a panel made up of EIT Climate KIC and IDB Lab experts. This evaluation will determine which of up to six organisations will advance to phase two, aiming to accelerate 100 climate-tech start-ups across the region. Announcements of the selected ESOs will be made in May, with an online event to highlight their upcoming plans with funders, investors, start-ups, mentors, and other stakeholders. Stay tuned for updates on our ClimaAccelerator LinkedIn account.
For 2024 and 2025, we’re set to offer start-ups a progressive, three-stage challenge tailored to amplify their impact in the field. Initially, all 100 start-ups will enhance their business development strategies, laying the groundwork for sustainable growth. From there, the 50 most-promising ventures will focus on achieving customer traction – a crucial step in demonstrating their market viability. The journey concludes here for the top 25, who will then concentrate on investor readiness, preparing them to attract vital funding and support. This structured approach ensures that each selected start-up is thoroughly equipped for success at every stage of their development.
If you are a start-up and wish to sign up for updates on the programme, you can share your contact details via this form. If you have further questions about our work in LAC, feel free to reach out to us at: climaccelerator@climate-kic.org.
- Hamilton, A. (2024, January 4). European Climate Tech in 2023. Dealroom.co. https://dealroom.co/blog/european-climate-tech-in-2023.
- Latin American Venture Capital Association. (2023). 2023 LAVCA Industry Data & Analysis. Retrieved from https://www.lavca.org/research/2023-lavca-industry-data-analysis/.
