Climate tech: mapping the landscape in Scotland

Growing evidence of the impact of climate change is making climate technologies an increased priority for policymakers, investors, businesses and consumers. Prioritising growth in the climate technology markets is an identified priority in Scottish and UK Government economic and industrial strategies, with the development of climate tech potentially worth $1.5tn and $2tn of capital investment globally. This report has been commissioned by Scottish Enterprise to better understand the emerging climate tech sector in Scotland and the current investment landscape supporting it. It maps complementary sector components to help inform how support can be most effectively directed to enable Scotland to realise the opportunities from climate tech growth.

In order to map climate tech companies across Scotland, we must first identify and adopt a clear definition of climate tech; and then build an appropriate taxonomy for sector analysis. Crucially, our taxonomy and the allocation of companies using it focusses first on the application of the technology rather than the technology itself. Our data collection methodology combined extracted company data from multiple established and authoritative databases. This data was enhanced through desk-based research using online directories and cross-checked with data and information from further websites, particularly for early-stage companies.

Our company analysis indicates that the largest sectors are dominated by established companies and service providers. Much of the rest of the sector is still evolving and optimising technologies, scales and applications, developing markets and business models, and working to secure investment. Enabling technologies in other co-beneficiary sectors, such as digital, will deliver substantial benefits in terms of economic growth and tackling climate change.

Recognising the interconnectivity of these ecosystem components and designing support to facilitate and streamline that engagement will help accelerate both innovation and impact. Actively and intentionally resourcing the development of a climate tech market square will encourage enhanced confidence, clarity and activity in the sector and its investors.