Defining Cleantech
Ambiguity leads to ineffective communication and many times slower action; when we say "cleantech" this is what we mean
Hey there,
In nearly every introductory conversation that we have about the Georgia Cleantech Innovation Hub (GACIH), we get at least one question about how we define “cleantech” or about what sectors we include within “cleantech”. Every once in a while, we also get a strange look from someone when we say “cleantech” and not “climate tech”, presumably because the term, “climate tech”, is being used almost ubiquitously to describe the work being done in this field today.
So, we decided to take a step back from our typical newsletter content to share how we define the term and what we think it means for our efforts to develop a robust and inclusive cleantech economy in Georgia. Let’s start with our definition:
Cleantech is the set technology advancements that create a two-fold impact by: 1) improving the economics (performance or cost), and 2) reducing the ecological and human impact of pollution, or improving the productive use of natural resources, or by simply reducing waste or pollution related to a process.
This broad definition builds upon pioneering work by the Cleantech Group, circa 2002, and others including Greentown Labs, Clean Edge, and various consulting firms. This definition animates every part of our vision and mission.
Before we go further, here is what you can expect from the rest of newsletter:
Why we chose this definition
How we see “cleantech”, as defined, fitting with other commonly used terms
Why this definition is important for our organization’s work in Georgia
So let’s dig in. To start, here are few links resources for those looking for different perspectives on defining terms in this space.
Fresh Links, Tools, and Resources:
There is a lot of good thinking and writing on this topic and we want to make our readers aware that much of our thinking is built upon this work. If you know of others, please engage in the comments, we am always game to learn. Here are few links to those resources:
Weekly Resource List:
Cleantech Group Taxonomy (10 mins) - The trailblazing group that trademarked cleantech back in 2003 has continued to evolve their definition and its sub-sectors. The full taxonomy is very detailed (over 400 sub sectors); we have found their industry groupings to be valuable in guiding our work.
Clean Energy Ventures Blog (5 mins) - One of the first “cleantech” vs. “climate tech” definition pieces that we could find dating back to 2020/21. Their Venn diagram clearly supports their definition of cleantech vs. climate tech, however it is slightly different than ours.
Climate Tech VC’s Criteria (10 mins) – CTVC’s has been putting out well-researched thought leadership in this space for over 5 years. They describe “climate tech” as a theme and not an industry — which we agree is accurate. Their definition requires that two filters: 1) climate impact and 2) climate vertical both be met to fit as a climate tech company.
MIT’s Post Mortem on Cleantech 1.0 (Article, 30 mins) — A longer read regarding the lessons learned from the cleantech 1.0 era (2006-11). It provides context as to why there has been a move away from using the term “cleantech”, but also why we should not be frightened by it either.
Defining Cleantech and Why it Matters
There is a lot to unpack here and having some historical context is helpful. However, what we find most important is the “why” and and what the implications are. We will try to cover all of this as succinctly as possible.
An Evolution of Terms
The term "cleantech" was first coined in the 1990s by investors in the American financial sector to categorize emerging technologies aimed at reducing the environmental impact of industry and growing population. It gained significant traction in the early 2000s after the dot-com bubble burst, as venture capital began flowing into the sector.
Concomitantly, the term "green tech," also emerged as environmental concerns gained mainstream attention, serves as a broader umbrella term. Organizations like Greentech Media thrived under this moniker because it was able to create a big tent. However, this term also seemed to draw the most backlash, as it became associated with solutions that did not delivery both economic value and environmental value.
"Climate tech" is the most recent addition to this terminology family, gaining popularity in the late 2010s and early 2020s. This shift partly represents an effort to rebrand after the tumultuous end of the Cleantech 1.0 era that followed the 2008 financial crisis, when many investors experienced significant losses in the sector.
Why A Broad Definition of Cleantech
There are essentially three reasons why we chose to use the term “cleantech” and to define it broadly when describing our organizations purpose, even though the word has become somewhat dated. They are as follows:
It Provides Freedom to be More Relevant In Georgia: We have written extensively about how we are trying to grow a world-class innovation ecosystem in Georgia to complement the state’s burgeoning cleantech manufacturing ecosystem (see Five Steps and Hidden Gem). In short, we believe innovators will develop their products and businesses here if we make clear a) what assets the state has to create a durable competitive advantage for cleantech innovators in specific sectors, and b) how innovators can access them. By defining cleantech broadly, we have the most freedom to highlight what sectors of cleantech will thrive in Georgia, providing competitive advantage to innovators and having positive knock-on impacts with the state’s communities, key industries, and companies.
It Enables Faster Impact: We crafted a definition that includes both technologies that address mitigation — avoidance of the causes of waste, pollution and — and adaptation — resiliency to their impacts — because the timeline to impact for mitigations solutions can be longer than that for adaptation. To grow an innovation ecosystem, momentum from quick wins is essential and we see that opportunity with adaptation solutions.
It Can Be Easily Extended from the State’s Manufacturing Boom: Cleantech is already a term used when describing growth of manufacturing prowess in electric vehicles, batteries and solar power. Cleantech is one of the growth industries of the future that will create good jobs and a tax base for decades to come. This manufacturing base, in fact, is one of the unique differentiators that the state can use to attract and grow new innovative companies. The manufacturing skillsets and capabilities in electrochemistry, assembly, and high tech can transferred to other sectors covered under this broad definition, including, but not limited to water purification, e-fuels, and the circular economy.
Of course the risk here is that a broad definition of cleantech, can create a untenable scope, a lack focus and few results. To avoid this, we aim to be diligent about amplifying industry groups and sectors within cleantech where Georgia provides innovators a competitive advantage on a global scale. We have written about logistics as one of these industry groups, and there are certainly others. We are currently working through “Step 2” of the roadmap to creating a world-class cleantech innovation ecosystem.
Cleantech Industry Groups
Cleantech is not itself an industry, instead cleantech is a cross-cutting set of technologies that align with specific industries. There are many organizations that have extensively researched and developed segmentations for cleantech, so we have not developed our own, instead aligning our thinking to the taxonomy developed and maintained by the Cleantech Group. The Cleantech Group’s taxonomy has at its top level, six industry groups: Agriculture & Food, Energy & Power, Materials & Chemistry, Resources & Environmental Management, Transportation & Logistics, and Waste & Recycling. Our list of Georgia-based cleantech start-ups uses these industry groups in its categorization.
Cleantech, Climate Tech and Sustainability
While the term “climate tech” has seemingly replaced “cleantech”, especially by newer ventures with the desire to distinguish themselves from what is perceived as the "older generations" of cleantech companies, it has a smaller area of focus than cleantech. Climate tech is widely agreed to encompass technologies that mitigate greenhouse gas emissions and address the impacts of climate change on the environment, people and communities. Cleantech, generally, and also in our definition, includes pollution and waste that includes and extends beyond just greenhouse gases (e.g., carbon dioxide, fluorocarbon gases, methane, sulfur hexafluoride, etc.).
While some may want to debate us on this point, I believe that our definition of cleantech fully includes climate tech solutions. We view the excessive release of GHGs from processes to be a form of pollution, just like particulate matter, ozone, CFCs, lead, and myriad others. To take this a step further, we believe that pollution is simply a form waste. It is the (usually) unintended, but not un-impactful, result of processes that have not been designed to economically address unwanted, unneeded outputs. I realize this is getting a bit philosophical, and that is not the point of this article, and so will move on. The key takeaway here is that our definition cleantech encompasses greenhouse gas pollution mitigation and adaptation.
One more related, and complementary term that is worth considering here is “sustainability”. We believe that sustainability is an outcome with and even broader and more encompassing definition when compared with cleantech. Sustainability is the collection of efforts undertaken to create and maintain the conditions under which humans and nature can co-exist and thrive today and for many future generations. Sustainability goes beyond the environmental dimension that is cleantech’s focus to include social and economic dimensions as well. As we have defined it, we view cleantech as an arrow in the quiver for those that are engaged in promoting and driving sustainability to achieve their objectives. The two terms are, therefore, distinct, but complementary.
Why it Matters
Everyone knows the adage that if you want to go fast, go alone; but if you want to go far, go together. Well, we want to go fast and far. That requires many things, but it is rooted in clear and unambiguous communication. Precise terminology helps the ecosystem — investors, entrepreneurs, corporates, non profits, academia and policymakers — to direct resources most effectively. We hope that by publishing how we define cleantech, it will encourage others to do the same. Perhaps, more importantly, also encourage our ecosystem players to begin to align their efforts against the specific industry groups, sectors, and subsectors that have differentiated resources for innovators Georgia.
Upcoming Events and Opportunities
As the days are getting lighter and brighter, our cleantech event calendar gets (slightly) lighter as well. Make sure you have these high quality events on your calendar to expand your connections in the ecosystem.
Insights on Electric Vehicle Infrastructure Advancements in Georgia — May 13 — Hosted by the Technology Association of Georgia, this lunchtime event at Curiosity Labs will feature a diverse panel of utility experts from Georgia Power and EPRI along with cutting edge manufacturers from Rivian and Archer Aviation. The panel will share how they are addressing the challenges of the new wave of mobility across the EV ecosystem in Georgia.
Driving Our Future: AI and the Path to Cleaner Transportation — May 13 — Rounding out a full day, TAG also presents this happy hour event at Honeywell, where a panel of industry leaders, AI innovators, and sustainability experts as we explore the transformative impact of artificial intelligence on the future of automotive sustainability. From smart manufacturing and energy-efficient design to AI-driven supply chains and autonomous mobility, this event will dive into how cutting-edge technology is reshaping the industry for a greener, more efficient future.
Cleantech Hustle Hour @ ATLTech Week — Jun 11 — A special Cleantech Hustle Hour hosted in Midtown during Atlanta Tech Week. Just because you aren't grinding doesn't mean that you aren't hustling. Enjoy the camaraderie of your peers, a beverage, and network with your fellow Georgia-based cleantech startup hustlers.
ATL Cleantech Connect — Jul 16 — A quarterly social to engage members of the Greater Atlanta cleantech community, focusing on topics with strong local and national impact. This month focusing on the intersection of Cleantech and Resilience. Be sure to subscribe for updates on every event when registering.
Did we miss an event? Do you have an upcoming event that you want included? Please let us know!
Wrap up
That's it. We took a step back this week to take a step forward by sharing our definition of cleantech and the implications of that defintion.
Here is what you learned:
GACIH has a broad definition of cleantech, that gives the organization the white space to amplify the cleantech sectors that win in Georgia
While climate tech is most used term in this space today, the term cleantech addresses a broader scope
Defining terms is important so that we can move farther, faster with better understanding of what is in scope for our ecosystem’s stakeholders and beneficiaries.
If you are interested in discussing and debating the topics in this newsletter, please engage us in the comments, on social, or contact us directly. The conversation is what the ecosystem needs to progress.
And as always...If you enjoyed Build Cleantech Faster in Georgia, please consider subscribing or referring this edition to a friend or colleague.