Capgemini – Climate Tech Report, 2024

Capgemini's Climate Tech report highlights the importance of climate technologies, including renewables, batteries, low-carbon hydrogen, carbon capture, and alternative fuels, in addressing the climate and ecological crisis. According to the survey, three-quarters of executives believe that their organizations cannot achieve their sustainability goals without climate tech. On average, executives expect climate tech to contribute to 37% of their decarbonization or net-zero goals. However, the adoption of climate tech is hindered by high costs, with 77% of executives stating that it increases product costs. For instance, low-carbon cement and steel produced using climate tech are significantly more expensive than conventional options. Sustainable aviation fuel is estimated to cost 123% more than jet fuel. Despite the need for climate tech, organizations are only willing to accept a 9% increase in cost. The rate of corporate investment in climate tech is expected to rise by just 7.7% over the next two years. Digital technologies such as AI and digital twins are seen as crucial for reducing development costs, increasing efficiencies, and speeding up innovation processes. Executives view AI as the most promising technology for accelerating climate tech adoption. However, there are pockets of rapid progress in climate tech adoption, particularly in solar PV and electric vehicles, where green premiums have decreased significantly. Government support, private financing, and corporate action are identified as key factors in bringing down costs and scaling up adoption. For example, tax credits offered under the US Inflation Reduction Act (IRA) are expected to reduce climate tech costs by 40% on average.