Strengthening Start-Ups Essential for Germany's Economic Decarbonization

10 Sep, 2024

Strengthening Start-Ups Essential for Germany's Economic Decarbonization

Germany’s German Startups Association has highlighted the crucial role of start-ups in achieving the country’s climate goals and enhancing its position as a business hub. According to a new paper, start-ups are vital for driving economic transformation, especially in climate technologies. The association aims to double the number of unicorns in the climate sector by 2030, increasing from the current six. Additionally, it seeks to establish Germany as a leading venture capital provider for climate technologies and elevate one of its universities to the top three globally in climate innovation.

The association’s CEO, Verena Pausder, emphasized the potential for Germany to advance its "Made in Germany" success story with cutting-edge climate technologies. The "Innovation Agenda 2030" outlines strategies for leveraging available capital, focusing on key technologies, and addressing skills shortages. Proposed measures include improving visa processes and making English an official second language, as well as tripling venture capital investments to one percent of GDP by 2030.

Currently, around 30 percent of German start-ups address climate issues, but only one-fifth of venture capital is allocated to climate tech. Many of these start-ups are innovating in sectors like renewables and mobility, contributing to Germany’s reputation as a "Green Energy Valley."