This report assesses the current and future potential of Israeli innovation to play a central role in tackling the global climate change challenge. By undertaking the first mapping of Israeli companies developing technologies aimed at climate change mitigation and adaptation, the report reveals the current strengths of Israeli climate technology innovations. An AI-driven analysis of global climate innovations identifies Israel’s competitive advantage in comparison to other climate innovation ecosystems around the world. The report also evaluates the private capital and government investments in Israeli climate tech companies.
Mapping of Israel’s Climate Innovation Arena
Climate tech companies are mapped according to the relevant climate challenges addressed by their innovation. The report begins by describing the PLANETech Climate Challenge Map, the approach employed for compiling the climate companies, and the mapping procedure.
PLANETech Climate Challenge Map
The PLANETech Climate Challenge Map presents the main challenges to successful climate change mitigation and adaptation, across all activities of our daily life and natural ecosystems. The climate challenges are associated with four main areas: The Built Environment, Materials & Manufacturing, Land Use, and Nature, each of which contain 5 explicit challenges – 20 challenges in total (Fig. 6). This entails a broad and all-encompassing approach rather than focusing on specific economic sectors and services. When focusing on challenges, solutions can be facilitated by innovations from varied technologies that target the areas listed below each challenge. The challenges target the reduction of emission sources, enhancement of carbon sinks, as well as community, nature, and infrastructure resilience.
Climate Tech Companies
A list of Israeli companies identified as active in the climate arena, either having direct climatic impact or developing and implementing technologies that can positively contribute to tackling climate challenges, was compiled from the following databases: CBInsights, HORIZON 2020, Crunchbase, SNC, IVC and the Innovation Authority database as well as companies listed with the BIRD Foundation, PLANETech, Ecomotion, and the Israeli Smart Energy Association. Details on the founding year of the company and the number of employees were included in the compiled database. A glossary was
compiled, detailing each of the PLANETech Climate Challenges.10 Each company selected as a climate company was thoroughly examined andclassified according to its compatibility to the 20 challenges of the Map. These were designated by relating to the sector attribution of the innovation, the technology it is based on, the innovation’s functionality, how and where it is applied, and how (in the case of material products) it is generated. A company’s innovation, be it a product, service, or platform, can be associated with multiple challenges. Companies were classified with 1 to 4 climate challenges.
Capital investments in Israeli climate technology companies were mapped using the Crunchbase and IVC databases. Investor identity and amounts were extracted for each one of the company’s completed financing rounds. Investor characteristics, such as headquarters country and investor type (i.e., VC, Angel etc.) were also categorized, and a comprehensive unique investors list was compiled.