SCALING CLEANTECH IN ASIADaniel Hersson, Team Leader, Cleantech VC/PE Project (Consultant)Innovation Conference, Astana, 25 November, 2016

STARTUPS ARE DRIVING

CLEAN ENERGY GROWTH

STARTUPS ARE DRIVING

CLEAN ENERGY GROWTH

CLEANTECH STARTUPS IN ASIA FACE MANY BARRIERS

ADB IS SUPPORTING NEXT GENERATION OF CLEANTECH ENTREPRENEURS IN ASIA

supporting leading accelerators & incubators

backing new cleantech funds

and investors

enabling active networking and collaborations

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SUPPORTING ASIAN CLEANTECH ACCELERATORS

SIX accelerators supported

1000+ startups evaluated

100+ startups accelerated

20+ startups seed-financed

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BACKING NEW ASIAN CLEANTECH FUNDS2

India’s first and only early-stage cleantech venture

capital fund ($25m) hosted by CIIE at IIM Ahmedabad

Supporting pipeline development, deal-sourcing and portfolio management

Recently launched low-carbon private equity fund ($400m) co-managed by

ADB, Orix and Robeco

Supporting fund-raising, deal-souring, due diligence and portfolio management

CREATING A CLEANTECH COMMUNITYNEW ENERGY

NEXUS• First global network

of cleantech accelerators

• 30+ members that has supported 1000+ start-ups and helped raise $2+ bn

• Co-founded by California Clean Energy Fund and Asian Development Bank

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LAUNCHING ABC ACCELERATOR@MOST

Launching Kazakhstan’s first Agri, Bio & Clean Tech accelerator

Managed by MOST Incubator Supported by Asian

Development Bank 10-15 start-ups per cohort Feb – June 2017

Photo to be added

THANK YOU

BACKUPS

Asia’s share of future growth in energy demand

Asia’s share of global CO2

emissions by 2035

66% 6%4

ASIA’S BIGENERGY & CLIMATE

CHALLENGE

Asia’s bigenergy & climate

OPPORTUNITY

CLEANTECH IS MUCH MORE THAN JUST RENEWABLES

Solar PV and thermal Wind, geothermal Biomass, biofuels

Renewable Energy

Energy efficiency Green material Smart grid

Resource efficiency

Air quality Water management Soil, forestry and land

Environmental protection

Internet of things & smart cleantechsmart cities, smart mobility, smart agriculture, smart buildings, smart industry

Source: Bloomberg New Energy Finance; UNEP

GLOBAL TRANSACTIONS IN GLOBAL RENEWABLE ENERGY 2014 ($bn)

WHY DO WE CARE ABOUT CLEANTECH VENTURE CAPITAL?

0.7%VC + PE Unique source of financing

for high-risk start-ups that are developing new solutions that are

commercially unproven but has potential for exponential growth

CLEANTECH VC IN ASIA IS STRUGGLING

Source: Cleantech Group, CB Insight

8% of global cleantech VC investment

5% of total VC investment in Asia

* Excludes transport

Cleantech VC (Asia)*

Cleantech VC (Global)*

Total VC (Asia)0

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4

6

8

10

12

14

16

18

20

Venture capital investment in 2014 ($bn)

X“99% of cleantech start-ups are not investable”

Indian cleantech vc

LACK OF STRONG CLEANTECH ENTREPRENEURS

X“We don’t do cleantech”

Global VC fund

LACK OF EARLY-STAGE CLEANTECH INVESTORS

X“Who shall I talk to?”

Indian cleantech entrepreneur

LACK OF CLEANTECH VC & START-UP COMMUNITY

CLEANTECH VC IN ASIA IS STRUGGLING

X “Cleantech is a noble way of losing money”Large pension fund

CLEANTECH IS TOO RISKY

44 million people are added to Asia’s urban population every year.

Asia will have more than billion vehicles by 2035

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Asia will consume % more energyby 2035

54

Asia’s bigenergy & climate

CHALLENGE