Limiting global warming to 1.5 degrees Celsius will require new technologies – including from developing countries and emerging economies – where entrepreneurs struggle to find investors. In Latin America and West Africa, GIZ is supporting start-ups that make a measurable contribution to climate action. The aim is for them to become more attractive to private investors.
microTERRA and Cirkula are two examples of climate action ideas. The company microTERRA works in Colón, Mexico, an area known for its dense rows of greenhouses full of tomatoes and peppers. Nitrogen fertiliser residues in the wastewater linked to this agriculture can produce emissions and acidic soils. However, microTERRA’s founder, Marissa Cuevas, has come up with a solution: Lemna minor, commonly known as duckweed.
This small, fast-growing plant absorbs nitrogen from the water. Cuevas therefore began collecting agricultural wastewater in Colón and using it to cultivate duckweed. ‘With each hectare, we can remove around 58 kg of nitrogen a day. In terms of climate impact, this translates to CO2 savings of around 250 kg per day,’ explains Cuevas. She and her team produce two extracts from the duckweed, which are used in the food industry to mask bitterness and aftertastes in sweeteners – an example of the circular economy.
Cirkula, a young company in Peru, has developed an app that allows restaurants and businesses to sell surplus food. The app has saved 100,000 kg of CO2 to date. ‘In Peru, 12.8 million tonnes of food are wasted each year, which contributes significantly to methane emissions,’ says founder Michelle Gomberoff. ‘We want to expand and solve the problem.’
Climate action as a condition for support
microTERRA and Cirkula are just two of 180 start-ups in Latin America and West Africa that the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH has been supporting with the CATAL1.5°T Initiative since 2023.
In the Global South, there are great ideas and new technologies for climate action. However, it can be difficult for start-ups to find the investors they need to grow. The Green Climate Fund (GCF) and the German Federal Ministry for Economic Cooperation and Development (BMZ) are therefore providing funds to support young entrepreneurs. The start-ups must calculate their CO2 savings precisely – the figures are verified by a project partner. The aim is to save a total of 230,000 tonnes of CO2 equivalent within six years.
The CATAL1.5°T Initiative coaches the young entrepreneurs and connects them with private venture capital investors, universities, other companies and government representatives. The objective is to create an environment that makes it as easy and attractive as possible for young people to launch a climate start-up and lead it to success.
Climathons as a source of new ideas
At the heart of the initiative is the accelerator – a programme for companies that have a proven business model in place already. In this programme, the founders not only receive training, they are also provided with grants of up to EUR 100,000, which they are required to repay once their company reaches a certain size. The duckweed start-up microTERRA and the founders of Cirkula are among the beneficiaries. ‘Participating in the accelerator introduces us to a larger group of companies, investors and public-sector organisations who can support our mission,’ says founder Cuevas.
Start-ups that are in an earlier phase are also supported, for example in developing their first prototype. For those without a fully developed business plan, the initiative organises Climathons in various cities in Latin America and West Africa. The events take place over one to two days and connect the local start-up scene with university students, school pupils and politicians. Tasks are set, and small teams then develop and present their ideas. In Barranquilla, Columbia, for example, an idea that impressed the jury was a climate-friendly cement that cleans the air in cities.
Last update: September 2024