COP, Startups, and SMEs: Platforms Championing Climate Innovation
The climate crisis is no longer a distant threat: it's our current reality.
Extreme weather events are devastating communities worldwide, and as UN Secretary-General Antonio Guterres lately declared “2024 has been a masterclass in human destruction". The urgency for action is undeniable, and while global summits like COP (Conference of the Parties) that have happened in the past 2 months have been often criticized, they remain crucial platform for driving the climate transition.
COP: A Platform for Action, Not Just Promises
COP brings together nations that signed the UN Framework Convention on Climate Change (UNFCCC) to negotiate strategies for tackling climate change. While progress has been slow and often overshadowed by the influence of fossil fuel lobbyists and by the slow negotiations and agreements across attending governments, COP remains vital for several reasons:
- 📢 Amplifying Marginalized Voices: COP provides a platform for indigenous groups, youth activists, and civil society to voice their concerns and advocate for climate action.
- 🤝 Driving Global Collaboration: It fosters collaboration between governments, businesses, and NGOs, facilitating knowledge sharing and partnerships.
- 🎯 Setting Global Goals: COP sets the global agenda for climate action, pushing for commitments and targets, even if they are not always met.
However, the transition from negotiation to action is critical. We need to move beyond promises and focus on concrete solutions. This is where startups and SMEs come in.
What is the United Nations Framework Convention on Climate Change? | UNFCCC
Why are Startups and SMEs the Agile Champions of Climate Innovation?
Now more than ever, it is time to accelerate new solutions, go beyond the status quo, and unleash the positive impact of the entrepreneurial revolution. Startups and SMEs are uniquely positioned to drive climate innovation. Their agility, creativity, and community focus allow them to develop and implement groundbreaking solutions. Here's how:
1. They drive Innovation, developing and scaling new Technologies
According to a World Economic Forum report, 50% of the technologies required to achieve net-zero goals have yet to be developed. Startups are at the forefront of developing and scaling technologies in renewable energy, circular economy solutions, and nature-based technologies.
According to the World Bank's latest data, SMEs account for approximately 90% of businesses and more than 50% of employment worldwide. In Europe they produce an estimated 55% of all innovations (European Commission, 2021) thanks to their smaller scale that make them more agile than corporates, and are increasingly adopting sustainable and circular models.
2. They focus on localized Impact
SMEs and Startups are deeply rooted in their communities, enabling them to tailor solutions to local needs, such as sustainable agriculture practices and energy-efficient infrastructure. This localized approach fosters regenerative business models that prioritize ecological restoration, including:
- Localized food production systems that reduce emissions and enhance food security.
- Circular economy innovations that minimize waste and create sustainable value chains.
- Nature-based solutions, such as reforestation and sustainable agriculture, aligning with the Global Biodiversity Framework (GBF) goals.
3. They can accelerate decarbonization
The United Nations Environment Program(UNEP) estimates that achieving the Sustainable Development Goals will require an investment of $5-7 trillion annually, highlighting the critical role of startups and SMEs in this transition.
SMEs are pioneering green technologies like carbon capture systems and clean hydrogen production, addressing high-emission sectors and significantly reducing global carbon footprint.
However, to fully harness their potential, startups and SMEs require supportive ecosystems that prioritize innovation and sustainability.
Approximately 30% of key mitigation technologies, such as clean hydrogen and biofuels, encounter significant cost barriers, particularly in heavy-emitting sectors like materials, transport, and agriculture. It is crucial to scale these solutions for effective industrial decarbonization.
The IFC notes that SMEs alone have the potential to reduce greenhouse gas emissions by 50% through sustainable practices and embracing green technologies.
4. They collaborate across sectors
By forming partnerships with policymakers, NGOs, and larger corporations, startups can amplify their impact. Collaborative efforts enable knowledge sharing, funding access, and the development of scalable climate solutions.
The NatureTech Alliance, introduced at the World Economic Forum and formed by ERM, Salesforce, NatureMetrics and Planet Launch NatureTech Alliance to Address Biodiversity Loss exemplifies such cross-sector collaboration, fostering partnerships that drive impactful solutions to fight biodiversity loss.
5. They can shape consumer behavior
With increasing consumer demand for sustainable products, small and medium-sized enterprises (SMEs) that adopt eco-friendly practices can significantly influence broader behavioral changes, establishing themselves as market leaders. According to a study by Nielsen, 73% of global consumers are willing to change their consumption habits to reduce their environmental impact, and 81% feel strongly that companies should help improve the environment. (Nielsen, 2021).
Celebrating our community at COP16!
From beginning of December, the COP16 will be hosted by the United Nations Convention to Combat Desertification (UNCCD) alongside the G20 Global Land Initiative and the International Drought Resilience Alliance (IDRA) in Ryiah'd to highlight the critical role of healthy land in climate solutions and enhancing drought resilience.
Two social business initiatives from our network ( who joined the 2 programs that we ran in Africa and Latin America in partnership with the Frieds of Social Business e.V) will showcase their innovative solutions. Meet:
GreenUP Gambia: This initiative transforms agricultural and organic waste into biochar, providing a sustainable cooking fuel solution while combating deforestation and carbon emissions in The Gambia. GreenUP is seeking investment to scale its operations, aiming to reach thousands more households and support the nation’s green energy transition.
Greencopper Dynamics: Based in Chile, the team used advanced technologies to predict, control, and manage mining waste, preventing land and water contamination. By integrating NASA Earth observation data with ground-based sensors, Greencopper Dynamics provides mining companies with real-time analysis to optimize waste management and reduce environmental damage.
While COP provides a global framework, real change starts at the grassroots level. Startups and SMEs have the power to disrupt traditional systems, prioritize regeneration, and drive meaningful change. By embracing innovation, collaboration, and bold action, we can create a thriving future for people, the planet and society.
Join the community. Join the future.
Written by Maria Ida Palmieri.
Published on November 25, 2024
Sources:
Intergovernmental Panel on Climate Change (IPCC Report 2024);
United Nations Environment Programme. (2021). Making Peace with Nature: A Scientific Blueprint to Tackle the Climate, Biodiversity and Pollution Emergencies. Retrieved from https://www.unep.org/resources/making-peace-nature ;
World Economic Forum. (2024, October 24). "Alliance of CEO Climate Leaders to prioritize action at COP29." ; World Economic Forum. (2021), "Accelerating Net-Zero: How Companies Can Get to Zero Emissions";
Nielsen (2021), “The Sustainability Imperative: New Insights on Consumer Expectations.” ;
World Economic Forum (2020). "The Future of Jobs Report 2020".;
World Bank (2023). "Small and Medium Enterprises (SMEs) Finance." ;
European Commission: "The Role of SMEs in Innovation in the EU."
