Asia’s climate tech startups are facing a sharper funding squeeze in 2026 amid geopolitical headwinds. But despite rollbacks from the current United States administration on climate pledges, Singapore and the region’s growing ecosystem shows that “hard tech” breakthroughs can still make the leap from lab to market.
In the latest episode of the Eco-Business podcast series Climate Tech in Asia, Jane Zhang, head of Southeast Asia and Singapore for Breakthrough Energy notes how the current headwinds have made investors pickier – although climate tech funding rose by 8 per cent last year, the number of deals hit a four-year low.
Zhang outlines the sector’s stark reality. “Hard tech” innovations – such as industrial processes and hardware – face long, capital-intensive paths from prototype to deployment, unlike their software counterparts. Early-stage capital is thinning as growth funds dominate. Yet, amid energy security concerns, plays in renewables, storage and critical minerals continue to attract investor confidence.
One standout example is Green COP, a spin-off from National University of Singapore (NUS) and a 2024 finalist of The Liveability Challenge (TLC). The startup turns agricultural waste into biofuel for the maritime and transport sectors, slashing emissions by up to 83 per cent.
Co-founder Sng Yee Ching describes the journey from pilot to commercialisation as the “toughest gap” – marked by high capital costs, unproven scalability, and slow paybacks. “No one wants to be the first adopter unless it’s proven at scale,” she says. Despite these hurdles, Green COP is now piloting its technology with Malaysia’s IOI Plantations and eyeing commercial deals.
Discovered by Bill Gates-founded Breakthrough Energy through TLC in 2024, Green COP is part of a growing network of innovators supported by the platform. Presented by Temasek Foundation and organised by Eco-Business, TLC has become Asia’s leading sustainability innovation challenge since its launch in 2018. It has attracted thousands of global applications, incubated 54 finalists, and channelled almost S$14 million in catalytic funding to help startups scale.
“Singapore shines as a climate tech hub,” Zhang observes. And Asia’s hunger for energy is immense – but the bigger the challenge, the bigger the opportunity.
In this episode, speakers share strategies for founders navigating the capital gap – from cultivating partners early and de-risking through data and pilots, to managing “blended capital” beyond traditional venture funding. “Demonstration beats presentation,” says Yee. Zhang adds: “Execute milestones, court customers, and strategise your capital stack.”
Now in its ninth edition, TLC 2026 will offer a record S$4 million in catalytic funding and support – its biggest boost yet – to speed cutting-edge sustainable innovations from lab to market. This includes S$2 million in catalytic grants from Temasek Foundation, S$2 million in development support from the Agency for Science, Technology and Research (A*STAR), and additional grants from Enterprise Singapore. Applications are open until 23 February 2026.
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