What is the Difference Between Clean Tech and Climate Tech?

As technology and sustainability evolve together in the hope of creating climate solutions, two distinct yet interconnected fields have emerged — clean tech and climate tech. 

While both aim to combat environmental challenges, they have distinct focuses and approaches that are reshaping industries and attracting significant investment.

Clean tech and climate tech explained

So, what’s the difference between the two?

Clean tech focuses on enhancing efficiency and reducing waste across various industries, whereas climate tech specifically targets the reduction of greenhouse gas emissions and adaptation to climate change.

Clean tech is a term coined in the early 2000s and encompasses a broad range of technologies and business models designed to improve environmental sustainability across various sectors. 

Its main focus centres around reducing industries’ environmental footprints by enhancing efficiency, minimising waste and utilising renewable resources, including innovations in energy efficiency, renewable energy, green transportation, water purification and waste management.

Climate tech, on the other hand, has a more specific focus on mitigating and adapting to climate change. It targets technologies that directly address greenhouse gas emissions, such as carbon capture and storage, climate modelling and adaptation technologies to cope with climate change impacts.

This distinction not only shapes investment strategies but also influences the development of innovative technologies essential for achieving a low-carbon economy.

What are some examples of climate tech?

Direct air capture (DAC) is one of the most pioneering forms of climate technology. Its processes, simplified, involve removing CO₂ from the air and either reuses it or stores it underground.

Big movers in this field include Climeworks, which works with companies like Morgan Stanley, Coca-Cola HBC Switzerland and LEGO.

Climeworks’ DAC expansion plans are projected to see the company capture 1.3 million metric tons of CO₂ per year by 2030.

Speaking during his time as General Manager, Onshore Wind Product Management at GE, Paul Judge, General Manager, Technical Wind at Fortescue says: “DAC is a time machine. It can do the things we wished we’d done in the past.”

The International Energy Agency (IEA) highlights that despite its promise, capturing CO₂ from the air is the most expensive application of carbon capture. 

So how do we get the DAC industry to scale faster?

CUR8’s Co-Founder and Chief Scientist Dr Gabrielle Walker says: “As well as coordinating the ecosystem, we need to embed carbon dioxide removal (CDR) in the wider climate conversation, both to look for opportunities and to ease fears.

“CDR goes along with other climate actions, like the phase out of fossil fuels investments, the required 7% reduction of emissions or the protection of existing sinks and rainforests.

“This is a moment of truth. We have an immense challenge and an immense opportunity ahead of us.”

Clean tech in action

There are plenty of common examples all around us that may not immediately strike you as clean tech. 

Renewable energies may seem like an obvious illustration, but EVs, recycling and waste management processes, as well as water reuse and the development of bioplastics, all count as clean tech applications.

Carbon Clean is a leader in revolutionising carbon capture solutions.

Its patented CycloneCC system — which is leveraged by mammoths of industry including Malaysian multinational oil and gas company PETRONAS — significantly reduces the cost and size of carbon capture units, making it more accessible for hard-to-abate industries. 

As of 2023, Carbon Clean had removed more than 1.9 million metric tonnes of carbon from 49 facilities worldwide, demonstrating the scalability and effectiveness of their solution.

Aniruddha Sharma, Chair and CEO of Carbon Clean, says: “We are on a mission to solve the biggest decarbonisation challenges faced by hard-to-abate sectors: cost and space.

“Our focus is on rapidly commercialising and scaling CycloneCC so it can help heavy industries play their part in a clean energy future.”

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