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Energy Cleantech 21 Jul 2025

What are clean technologies? How does 'cleantech' work?

Clean technologies, also known as 'cleantech', are technologies that contribute to sustainability and environmental protection. This includes innovative solutions for  both climate change adaptation and mitigation, ranging from emission reduction to biodiversity protection and water treatment.

Cleantech is an emerging concept that, in recent years, has moved beyond specialized sustainability circles to reach a wider audience. As with all new terminology, it can lead to some confusion. However, there is a consensus among energy sector experts: 'cleantech' refers to clean technologies. This entails the presence of a technological and innovative component with the primary goal of promoting sustainability and decarbonization.

Common examples of clean technologies include renewable energies,electric vehicles, recycling and waste management processes, water reuse and the development of bioplastics, according to the experts consulted.

Avaesen, the association of renewable energy companies and other clean technologies of the Valencian Community, specifies the definition. Their general manager, Pedro Fresco, points out that the purpose of 'cleantech' is to "reduce or avoid the environmental damage of processes that we currently perform with other, more impactful technologies." He adds, "When we refer to 'cleantech,' we are not only talking about major technological developments, but also about services or business models that rely on technology to some extent."

Efficiency-oriented processes can also be incorporated into this concept. According to Covadonga Pevida, a researcher at the CSIC (Spanish National Research Council) within the Institute of Carbon Science and Technology, the term comes from the clean technologies that were already being used to reduce emissions from fossil fuels. "In the current context of the transition to renewables, the 'cleantech' concept is broadening to include not only technologies that enable cleaner fuel utilization, but also those that focus on the sustainability side.” In her opinion, even circular economy processes qualify as cleantech.

Investment in cleantech

According to the Energy Technology Perspectives 2024 report, published by the International Energy Agency (IEA), the value of clean technology transactions will reach $575 trillion by 2035, which would represent nearly a threefold increase over 2023.

BBVA joined the alliance Cleantech for Iberia, which has the support of Breakthrough Energy, an initiative founded by Bill Gates. The main goal is to create a global center that consolidates the Iberian Peninsula's position as a leader in the cleantech sector. A region where clean technologies will mobilize over €150 billion  in investment and create 2.65 million new jobs by 2030, according to Cleantech for Iberia.

What is cleantech and what are its features?

The trend over time is clear. "There is a consistent increase in investment in clean energy and decarbonized technologies, which has been growing steadily since the Paris Agreement," says Fresco, who has first-hand knowledge of the subject, as Avaesen leads the Cleantech Climate Launchpad clean technology business idea competition at the national level. "Startups are showing an increasing focus on technology and a greater readiness to face the demands of today's market. Clearly, more and more young people are joining cleantech entrepreneurship, bringing a distinctive technological approach to this dynamic landscape," says the association's general manager.

Researcher Covadonga Pevida also notes the rapid progress of cleantech. "Those of us who have worked with coal or fossil fuels see that commercial denitrification (DeNoX) or desulfurization (DeSoX) technologies were developed many years ago to remove nitrogen oxides and sulfur oxides.” But she believes that the discussion around cleantech now goes beyond that.

Today, the concept cannot be decoupled from the climate challenge facing the planet. "Cleantech challenges are intimately linked to the climate challenge facing humanity," Fresco points out. "We have to make a radical change in technologies in 30 years and that will require a huge amount of investment, far above what we are currently investing.”

What is climatech? Going beyond cleantech

In this context, there is another term that is emerging, which is even less well known and more recent than cleantech. The new term is 'climatech,' which is subtly different from cleantech. "We could say that climatech focuses on technologies and services that reduce the climate impact of our activities, while cleantech is somewhat broader, as it puts the focus on  broader environmental issues, such as the water cycle, waste treatment or biodiversity protection," Fresco explains.

Climatech therefore includes technologies that aim to mitigate the factors that cause climate change. Cleantech encompasses all of the above approaches, and adds others related to environmental protection. In other words, all 'climatech' is 'cleantech,' but not all 'cleantech' is 'climatech.'

Carbon capture, both from the air and in industry, is a typical case of 'climatech.' "Some activities have so-called process emissions. They cannot avoid emitting carbon. A very clear example is the cement production process. It inherently generates carbon dioxide (CO2), which is  linked to the raw materials themselves. These emissions are going to be generated and this is where carbon capture technologies come in. They add an additional process that selectively separates that carbon dioxide so that it can be stored," Pevida explains.

The race is not without its hurdles, however. According to the consulting firm PwC, there was a considerable slowdown in financing, dropping 30 percent from 2022 to $69 billion. This trend continued in the first nine months of 2024, when global investment stood at $41 billion - a 41 percent decline from the same period in 2023.