At COP16, Saudi Arabia Bets On Climate Tech To Make Deserts Bloom

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At COP16, Saudi Arabia Bets On Climate Tech To Make Deserts Bloom

Saudi Arabia is channeling significant investments into green innovation to transform its arid landscapes, but critics argue that these efforts risk being overshadowed by accusations of greenwashing, raising questions about their impact as genuine climate solutions.

This week, Riyadh is hosting the United Nations COP16 conference, focusing on drought and desertification—issues central to the Gulf kingdom. Saudi officials have announced plans to restore 40 million hectares of degraded land as part of their environmental goals.

While the country is a key player in climate tech investments, it continues to staunchly defend its oil industry, leading critics to claim its environmental initiatives deliver only limited results. According to a 2023 PwC report, Saudi Arabia contributes nearly 75% of the Middle East's investments in climate technology start-ups globally. However, its green tech funding is heavily tilted towards energy solutions, with $363 million allocated to climate-friendly energy projects—almost ten times the amount invested in food, agriculture, and land-use innovations.

One promising initiative is located in the desert north of Jeddah at the King Abdullah University of Science and Technology (KAUST). Researchers there are employing microorganisms to lower the energy costs of wastewater treatment. The facility converts carbon into methane gas, which powers its operations, while producing filtered water that can be used to grow algae for livestock feed or to irrigate plants to combat desertification, according to Peiying Hong, the academic leading the project.

Turning sand into fertile soil is another innovative effort underway. Himanshu Mishra, a KAUST expert in environmental science and engineering, has developed a carbon-enriched compost made from chicken manure—a plentiful yet underutilized resource in Saudi Arabia. This compost acts like a sponge, retaining water and nutrients while fostering microbial biodiversity, essential for plant growth. Mishra's experimental farm is now flourishing with vegetation, and he envisions Saudi Arabia exporting both the product and its transformative technology.

Such projects show potential, but scaling them regionally or nationally demands substantial financial backing and political commitment. Hong emphasized the need for venture funding to demonstrate their large-scale viability, while investor John Robinson noted the challenges of securing financing for these types of start-ups, although some private investors have shown interest.

Despite these green initiatives, Saudi Arabia remains the world’s leading crude oil exporter and continues to prioritize technologies like carbon capture and hydrogen production under its "circular carbon economy" framework. Critics argue these measures are primarily designed to justify ongoing fossil fuel reliance.

In May 2024, the European Centre for Democracy and Human Rights (ECDHR) criticized the Saudi Green Initiative, claiming it masks the country's dependence on fossil fuels and disregard for environmental justice behind ambitious sustainability rhetoric. Saudi officials, however, defend their approach as essential for maintaining energy security.

UNSW’s Climate Tech Spin-Offs Get a Boost with Investible Partnership

Sydney-based early-stage venture capital firm Investible has joined forces with the University of New South Wales’ (UNSW) Trailblazer for Recycling and Clean Energy (TRaCE) program in a co-investment initiative to support climate tech startups emerging from the university.

The partnership, part of the Technology Commercialisation Venture Scheme, will focus on Seed and Series A investments in climate tech spin-offs from UNSW and companies nurtured through the TRaCE program.

This initiative, the first of its kind at an Australian university, is inspired by successful models from ecosystems in Israel and Singapore. Its goal is to accelerate the transition of research innovations into commercial enterprises.

A unique buy-back mechanism allows TRaCE to minimize risks and recycle funds from successful ventures, reinvesting in new startups. Gabriella Nunes, TRaCE’s director of research and commercialization, said the program aligns with TRaCE’s mission to support climate tech startups in their journey from the lab to market while ensuring a steady flow of seed funding.

TRaCE has initially committed $1.7 million to the program, which is further bolstered by Investible’s $32.7 million climate tech fund that has already backed 29 startups.

“This partnership sets a new standard for TRaCE,” Nunes said. “Combining TRaCE’s research capabilities with Investible’s investment expertise and ASEAN market access provides a strong foundation for our startups to thrive.”

Through the co-investment scheme, the aim is to secure more funding for promising technologies, attract venture capital earlier, and establish a sustainable cycle of capital reinvestment for university spin-offs.

Investible CEO Charlie Ill, who has experience with similar co-investment models internationally, expressed optimism about the partnership’s potential.

“TRaCE’s openness to innovative models and willingness to collaborate with Investible is a promising start,” Ill said. “This partnership strengthens our investment efforts and enhances access to resources and markets for university spin-offs.”

Fund Hampton Capital is also part of the collaboration, bringing its expertise in scaling university spin-offs and leveraging its vast network to support high-growth enterprises.

According to Nunes, the collaboration is designed to address the “Valleys of Death” that climate tech startups face, where high costs and uncertain market viability often deter private investment. By reducing risk, the scheme aims to draw more investor interest at an earlier stage.

The partnership commenced in August with DeCarice, a startup developing hydrogen-diesel hybrid technology that could cut diesel use in heavy-duty vehicles and machinery by up to 90%.

Founded in 2023 by engine industry expert Goran Bozic and UNSW Engine Research Laboratory director Professor Shawn Kook, DeCarice previously participated in UNSW’s Founders Climate 10x Accelerator. While Investible provided pre-seed funding, TRaCE supported Industry PhD funding, enabling a researcher to focus on the startup’s commercialization.

DeCarice CEO Bozic highlighted the importance of the ecosystem: “This full ecosystem has been vital for our journey from the lab to market, providing both funding and critical support to attract venture capital and drive growth.”

Tencent Unveils CarbonX 2.0 to Drive Global Climate Tech Innovation

Tencent has unveiled the 'CarbonX Program 2.0,' a global initiative aimed at driving technological innovation to support the goal of achieving carbon neutrality by 2050. The program seeks to identify and support the development of next-generation climate technologies, with plans to allocate significant resources and funding.

Building on the success of the initial CarbonX Program, which focused on identifying promising technologies within China, the expanded 2.0 version will target climate tech innovations worldwide. Tencent aims to address the challenges posed by underdeveloped carbon neutrality solutions.

The initiative focuses on four core areas: Carbon Dioxide Removal (CDR), Long Duration Energy Storage (LDES), Carbon Capture, Utilization, and Storage (CCUS), and Carbon Capture and Utilization (CCU).

• CDR focuses on removing CO2 from the atmosphere, with pilot projects already launched in Kenya.

• LDES aims to integrate renewable energy into power grids, demonstrated by a 100-kilowatt energy storage project in the Maldives, offering over six hours of storage.

• CCUS targets emission reductions in the steel industry through next-generation point source technology in Serbia.

• CCU collaborates with industry partners to create new value chains by converting captured carbon into chemicals and consumer goods.

The program invites proposals until May 2025. By September 2025, 10–15 promising teams for each focus area will be selected, with the final winners announced in February 2026. These winners will receive further funding and resources to develop and implement their projects.

The program was introduced at the 'Sustainable Social Value Innovation Summit' in Beijing, where industry leaders discussed collaborative strategies for advancing the Sustainable Development Goals (SDGs) and fostering an ecosystem of innovation.

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