As Southeast Asia experiences record-breaking temperatures and environmental challenges, the urgency for climate solutions has never been clearer. Local experts warn that if global temperatures rise by 3.2°C by 2100, Southeast Asia could lose up to 37% of its GDP. Currently, the region ranks among the world’s top carbon emitters, mainly due to its reliance on coal-based energy sources. However, decisive climate action today offers vast potential: experts estimate that proactive green initiatives could unlock over $4 trillion in economic value and create 230 million jobs across the region by 2030. Yet, despite raising $10.4 billion in climate-related funding in 2022, a substantial investment gap remains, presenting global investors with high-impact opportunities.

In Southeast Asia, a few climate tech companies are making notable strides in sustainability, targeting challenges in emissions reduction, energy efficiency, and resource management. Here are three promising companies to watch.

Accacia

Based in Singapore and India, Accacia has emerged as a key player in decarbonizing the real estate and infrastructure sectors, which contribute to 40% of global greenhouse gas emissions. As global policies push for net-zero emissions by 2050, Accacia helps property owners track and minimize their carbon footprint. Its platform is already in use by large corporations such as AECOM and Allianz, covering over 20 million square feet of monitored property. With expansion plans underway in Southeast Asia, the Middle East, and North America, Accacia’s technology aligns with investor interest in environmentally sustainable and profitable real estate solutions.

Koltiva

Founded in Indonesia, Koltiva tackles supply chain sustainability and transparency—a market projected to grow from $27.2 billion in 2022 to $75.6 billion by 2032. Koltiva uses a unique blend of software and field agents to build sustainable, traceable supply chains for agricultural goods. Hundreds of Koltiva agents work directly with smallholder farmers, ensuring compliance with environmental standards and fostering global market access. Koltiva’s technology also supports end-to-end transparency, allowing buyers to trace products from seed to shelf, vital for regulatory compliance in markets like the EU. The company’s impressive growth of 1.8x in 2023 and further expansion projections demonstrate its potential to meet investors’ demand for eco-friendly supply chain solutions.

Xurya

In Indonesia, Xurya leads the charge in commercial and industrial solar energy, promoting solar adoption through its unique no-upfront-cost model. Founded in 2018, Xurya now manages over 170 solar projects with a total capacity of 100 MW, helping to reduce CO₂ emissions by over 152,000 tons annually. Not only does Xurya help combat climate change, but it also contributes to job creation, with over 1,600 green jobs generated to date. Backed by $90 million in funding from investors like Norfund and Swedfund, Xurya’s integration of IoT and machine learning in solar management exemplifies the innovative potential of Southeast Asia’s climate tech landscape.

With Southeast Asia facing a $2 trillion funding need to meet its climate goals by 2030, companies like Accacia, Koltiva, and Xurya demonstrate the power of technology to bridge the region’s sustainability gap. Investors eyeing high-impact, scalable solutions in the region’s rapidly growing climate tech sector may find significant opportunities with these firms as they work to reshape Southeast Asia’s environmental and economic future.