Cleantech in Asia: Leading the Global Green Transition

Asia, home to over half the world’s population and some of its fastest-growing economies, has become a critical battleground in the fight against climate change. The region is both a major contributor to global emissions and a hub for clean technology (cleantech) innovation. From solar power in China to electric vehicles (EVs) in South Korea and green hydrogen projects in Japan, Asia is driving a cleantech revolution that could reshape global energy systems, industries, and urban landscapes.

The clean technology (cleantech) sector in Asia is experiencing remarkable growth, driven by a combination of government policies, private investments, and increasing consumer demand for sustainable solutions. 

Asia’s cleantech industry thrives with leaders like CATL, BYD, Panasonic, Toyota, and startups such as VFlowTech and Cleverheat. Investment firms like Asia Cleantech Capital and Temasek Holdings, along with platforms like New Energy Nexus SEA, fuel innovation. China leads in scale, while Singapore, India, and Southeast Asia emerge as innovation hubs.

According to a Grand View Research’s report on the Asia Pacific Clean Technology Market, the Asia Pacific clean technology market was valued at approximately USD 481.7 billion in 2024, accounting for 52.6% of the global market share. Projections indicate that this market will reach USD 1,003.5 billion by 2030, reflecting a compound annual growth rate (CAGR) of 13.4% from 2025 to 2030.

Asia’s Cleantech Powerhouses

1. China: The Solar and EV Giant
   China dominates global cleantech manufacturing, producing over 80% of the world’s solar panels and 60% of EVs. Its state-backed investments in renewables have made it the largest renewable energy market, with over 1,000 GW of installed wind and solar capacity—more than the rest of the world combined. Companies like BYD and CATL lead in EVs and battery technology, while China’s Belt and Road Initiative exports cleantech infrastructure to developing nations.
2. India: Scaling Renewables and Green Hydrogen
   India aims to reach 500 GW of renewable energy capacity by 2030, focusing on solar and wind. It’s also betting on green hydrogen to decarbonize heavy industries, with a $2.3 billion incentive program. Startups like ReNew Power and Tata Motors are advancing solar farms and EV adoption, though challenges like grid instability and funding gaps persist.
3. Japan and South Korea: Innovating for a Zero-Carbon Future
   Japan prioritizes hydrogen energy, aiming to build a “hydrogen society” by 2030, with projects like Fukushima’s green hydrogen plant. South Korea, home to LG Energy Solution and Hyundai, is a leader in battery tech and hydrogen fuel cells. Both nations have pledged carbon neutrality by 2050, backed by heavy R&D spending.
4. Southeast Asia: Emerging Green Economies
   Countries like Vietnam, Thailand, and Indonesia are rapidly adopting renewables. Vietnam has emerged as a solar powerhouse, with installations surging from 105 MW in 2018 to 18 GW in 2023. Thailand is focusing on EV manufacturing, while Indonesia leverages its nickel reserves—a key EV battery material—to attract investments from Tesla and Hyundai.

What is the cleantech industry?

Cleantech, or clean technology, encompasses a diverse range of innovations aimed at mitigating environmental impact while enhancing resource efficiency and economic viability. 

At its core, cleantech seeks to address global challenges such as climate change, pollution, and resource scarcity through sustainable, scalable solutions.

This sector spans multiple industries, including renewable energy (solar, wind, hydro), energy storage, electric mobility, smart grids, water treatment, sustainable agriculture, and circular waste systems. 

Unlike conventional technologies reliant on fossil fuels and linear consumption models, cleantech leverages advanced engineering, data-driven systems, and environmentally conscious design to reduce emissions, conserve resources, and promote long-term sustainability.

What distinguishes cleantech is its dual mandate: environmental stewardship and commercial competitiveness. Solar power, for instance, now rivals or outperforms fossil fuels in cost-efficiency in many regions, demonstrating that green alternatives can also be economically advantageous. Similarly, advances in battery technology and grid infrastructure are accelerating the shift toward decentralized, low-carbon energy systems.

Asia’s cleantech industry is dynamic and rapidly growing, driven by increasing demand for sustainable solutions, government policies, and significant investments in renewable energy, energy storage, and sustainable technologies.

Major Corporate Players

1. China:
   • Contemporary Amperex Technology Co. Limited (CATL): The world’s largest producer of lithium-ion batteries for electric vehicles (EVs) and energy storage systems, CATL holds a dominant position in the global battery market, with a significant share in Asia. Its vertical integration and innovation in battery technology make it a leader in the cleantech space.
   • BYD: With a 17.2% share in the EV battery market, BYD is a major player in electric vehicles and renewable energy solutions, leveraging vertical integration to compete with CATL.
   • PhaBuilder: A Chinese company specializing in Polyhydroxyalkanoates (PHA) synthesis, a sustainable alternative to traditional plastics. PhaBuilder is set to complete a major PHA production facility by the end of 2024, with an annual capacity of 30,000 tons, making it a key player in biodegradable materials.
   • Yingli Green Energy Holdings: A leading solar panel manufacturer, Yingli is a significant player in China’s solar energy sector, contributing to the country’s dominance in global solar production.
   • China’s Renewable Energy Giants: China leads globally in solar, wind, EVs, rail, and batteries, accounting for 70-80% of global production for parts used in batteries, wind, and solar energy, and over 90% of global investment in cleantech manufacturing.
2. Japan:
   • Panasonic: Holding a 3.9% share in the EV battery market, Panasonic is a key player due to its partnership with Tesla and focus on premium battery technology.
   • Toyota Motors: A leader in hybrid and electric vehicle technology, Toyota is investing heavily in next-generation EVs and hydrogen fuel cell technology, contributing to Japan’s cleantech advancements.
   • Japanese Renewable Energy Initiatives: Japan is increasingly focusing on ASEAN’s clean energy market, particularly in solar and wind, as part of its strategy to expand cleantech influence in Southeast Asia.
3. South Korea:
   • LG Energy Solution: With a 10.8% share in the EV battery market, LG Energy is a major player known for its premium battery technology and innovation in energy storage systems.
   • South Korea’s Clean Energy Investments: South Korea is actively investing in ASEAN’s cleantech market, focusing on renewable energy and energy storage solutions to support regional decarbonization efforts.
4. India:
   • Adani Group: Building the world’s largest combined solar and wind energy project in the Gujarat desert, Adani is a major player in India’s renewable energy sector, driving large-scale clean energy projects.
   • Serentica Renewables: A decarbonization platform focused on providing clean energy solutions to energy-intensive industries, backed by a $250 million investment from KKR.
   • India’s Cleantech Ecosystem: India’s cleantech sector is growing rapidly, supported by government policies and incentives. The sector is projected to be the fastest-growing in India, with renewable energy sources like wind and solar expected to dominate electricity generation by 2050.
5. Singapore:
   • VFlowTech: A Singapore-based energy storage solutions provider specializing in vanadium redox flow batteries with a 25-year lifespan. Incubated at Nanyang Technological University, VFlowTech focuses on scalable, cost-effective energy storage for energy equity.
   • Insectta: A biotech company developing biomaterials from black soldier flies, used in biomedicine, cosmetics, and electronics. Its sustainable, circular approach minimizes waste and environmental impact.
   • GetSolar: Formerly Solar AI Technologies, GetSolar is accelerating solar power adoption in Southeast Asia through innovative financing and technology solutions.
   • Neuto: A leading clean energy solutions provider in Southeast Asia, focusing on energy efficiency and renewable energy projects.
   • EcoWorth Tech: A spin-out from Nanyang Technological University, specializing in waste-to-worth solutions like Carbon Fibre Aerogel for cleaning industrial liquid waste.
   • Sensorflow: Focuses on hotel energy efficiency using wireless sensors to reduce energy usage by up to 30%, with plans to expand to 800,000 smart hotel rooms globally by 2022.
   • Temasek Holdings: A Singaporean sovereign wealth fund actively investing in cleantech, including a $65 million funding round in Samsara Eco, an Australian plastic recycling technology firm.
6. Philippines:
   • Cleverheat: Founded in 2017, Cleverheat provides solar-powered refrigeration solutions to reduce post-harvest losses for farmers, addressing food security and waste management while lowering carbon emissions.
   • RAD Green Solutions: Specializes in non-incineration waste control technology (PYROCLAVE) for solid and infectious medical waste, contributing to sustainable waste management.
7. Cambodia:
   • ATEC Biodigesters International: Produces small-scale biodigesters for rural households, converting farm waste into biogas and organic fertilizer. ATEC’s PAYGO financing model enhances accessibility, saving farmers approximately $521 USD annually.
8. Indonesia:
   • SunGreenH2: A winner of Indonesia’s Climate Impact Innovations Challenge, SunGreenH2 develops energy-efficient electrolyzers for hydrogen production, targeting a landed cost of $3/kg.
   • Hydrogen Refinery: Focuses on low-cost ammonia-based fertilizer production via plasma electrolysis of waste, reducing up to 11 tons of GHG emissions per ton of fertilizer.
   • AC Biode: Produces syngas for green energy generation through scalable chemolysis of mixed organic waste, contributing to Indonesia’s green transition.
9. Australia:
   • Samsara Eco: An Australia-based plastic recycling technology firm that replaces plastic packaging with fossil fuel-free polymer resins, backed by a $65 million investment from Temasek Holdings and Main Sequence.

Investment and Support Players

• Asia Cleantech Capital: Founded by Ron Mahabir in 2007, this Singapore-based firm is a leading cleantech incubator, supporting over 150MW of clean energy projects and electric vehicle charging infrastructure. It has helped create over 100 jobs and raised over S$50 million in capital.
• Temasek Holdings: A Singaporean sovereign wealth fund investing heavily in cleantech startups, including Samsara Eco and other regional innovators.
• East Ventures and Temasek Foundation: Support Indonesia’s Climate Impact Innovations Challenge, providing funding and scaling opportunities for cleantech startups like SunGreenH2, Hydrogen Refinery, and AC Biode.
• New Energy Nexus Southeast Asia (Nexus SEA): A platform fostering smart energy software development and connecting cleantech startups across Thailand, Indonesia, and the Philippines.
• Cleantech Group: A global organization highlighting APAC cleantech innovation through reports like the APAC Cleantech 25, featuring companies from China, India, Australia, and Singapore.

Key Trends and Insights

• China’s Dominance: China leads globally in cleantech manufacturing, particularly in solar, wind, and EV batteries, driven by massive investments and government support.
• ASEAN’s Growth: Southeast Asia is emerging as a cleantech hub, with Singapore, Indonesia, and the Philippines leading in renewable energy and sustainable technology adoption. The region has a high renewable energy mix (45.7% on average), driven by hydropower and bioenergy.
• Investment Surge: Global cleantech investment reached $235 billion in 2023, with Asia-Pacific playing a significant role due to its fast-maturing EV value chain and risk appetite in baseload power and energy storage.
• AI and Digital Solutions: AI is transforming cleantech in Asia, particularly in agriculture, maritime decarbonization, and grid resiliency, with events like Cleantech Forum Asia (May 7-8, 2025) highlighting its role.
• Government Support: Countries like India, China, and Singapore are implementing policies and incentives to promote cleantech, with India projecting EVs to dominate new car sales by 2030 and renewable energy to lead by 2050.

Asia’s cleantech industry is led by a mix of established corporations like CATL, BYD, Panasonic, and Toyota, alongside innovative startups such as VFlowTech, Insectta, Cleverheat, and ATEC. Investment firms like Asia Cleantech Capital and Temasek Holdings, along with platforms like New Energy Nexus SEA, are driving growth by supporting startups and fostering innovation. China dominates in scale, while Singapore, India, and Southeast Asia are emerging as hubs for innovative cleantech solutions. For further details on specific companies or investment opportunities, additional research or direct inquiries to organizations like Cleantech Group (news@cleantech.com) may be necessary.

Asia’s Cleantech Surge

The cleantech sector in Asia is experiencing dynamic growth, underpinned by increasing public and private investment. 

Countries like China, India, Singapore, and South Korea are playing pivotal roles in this transformation. China, for instance, has become a global leader in battery manufacturing and solar technology. 

Companies like LionGo are pushing the envelope with solid-state battery innovation, which promises greater energy density and safety. In Singapore, Green Li-ion is tackling one of the key challenges in the EV supply chain by developing proprietary technology to recycle lithium-ion batteries into high-grade cathode materials, supporting a circular economy.

Across the region, cleantech startups are not merely adopting existing global technologies, they’re building localized solutions that address region-specific environmental issues. From water purification in arid regions of India to smart grid integration in urban Japan, the innovation landscape is both broad and specialized.

How is cleantech evolving in Asia?

Asia is rapidly emerging as a global epicenter for cleantech innovation, driven by a potent mix of government policy, industrial ambition, and rising environmental consciousness. 

From the manufacturing corridors of China to the innovation labs of Japan and the emerging green economies of Southeast Asia, the region is redefining what sustainable development looks like on a global scale.

China is undoubtedly the cleantech powerhouse of Asia. It dominates the global supply chains for solar panels, wind turbines, and batteries. 

Driven by strong government mandates, massive subsidies, and long-term industrial planning, China is investing billions into technologies like green hydrogen, solid-state batteries, and carbon capture. 

Japan is leveraging its engineering excellence and energy efficiency legacy to drive cleantech growth. It has invested heavily in hydrogen fuel cells, smart grids, and waste-to-energy technologies. 

Japanese companies are focusing on integrating renewable energy into aging infrastructure while maintaining the country’s energy security. With a declining population and limited natural resources, Japan is prioritizing technologies that promote circular economies and urban sustainability.

Malaysia is emerging as a regional cleantech hub with a focus on renewable energy and energy efficiency. 

The government’s Green Technology Master Plan has spurred investments in solar, biogas, and energy management systems. Malaysia is also becoming attractive to international cleantech investors due to its strategic location, supportive policies, and growing domestic demand for sustainable solutions. The country is positioning itself as a clean energy exporter, especially in solar technology.

Thailand is adopting cleantech to improve energy independence and address pollution issues in its urban centers. The government’s Alternative Energy Development Plan aims to increase the share of renewables in the national energy mix. 

Thailand is seeing growth in sectors like solar, bioenergy, and EV infrastructure. With strong support from both public and private stakeholders, Thailand is cultivating a startup ecosystem that supports innovations in smart agriculture, sustainable transport, and resource-efficient manufacturing.

What are the main drivers of growth for this industry?

Several key drivers are fueling this cleantech boom. Foremost among them are supportive government policies that offer subsidies, tax breaks, and favorable regulations for renewable energy and clean technology projects. 

The Chinese and Indian governments, for example, have established ambitious clean energy targets, creating both market certainty and investment incentives.

The influx of venture capital and institutional investment is another major driver. Asia has seen a surge in funding for cleantech startups, with investors increasingly prioritizing environmental, social, and governance (ESG) metrics. 

This capital is accelerating research and development, enabling companies to scale more quickly and reach broader markets.

Lastly, the growing demand for sustainable products and services among consumers and businesses alike is creating fertile ground for cleantech adoption. As awareness of climate change deepens, both individuals and corporations are seeking greener alternatives, giving rise to new market opportunities.

The main challenges on the horizon

Despite its impressive momentum, the cleantech movement in Asia is not without obstacles. Infrastructure remains a critical bottleneck. 

Many parts of the region still rely on outdated power grids that are ill-suited for integrating intermittent renewable energy sources like wind and solar. Upgrading these systems will require significant investment and long-term planning.

Financing is another persistent challenge. While capital is flowing into the sector, high upfront costs for some cleantech solutions, especially in developing countries, can deter adoption. Inconsistent regulatory environments also pose a risk. 

Enforcement varies widely across countries, which can slow the pace of innovation and create uncertainty for investors.

Cleantech in Asia is evolving rapidly, with a strong foundation of innovation, investment, and policy support. 

However, to maintain this momentum and fully capitalize on the region’s potential, stakeholders must work collaboratively to address infrastructure gaps, ensure regulatory consistency, and increase access to financing. 

With sustained effort, Asia is well-positioned to lead the global cleantech transition, shaping not only its own sustainable future but also influencing the direction of global environmental progress.