Insider Brief
- A new three-year initiative called the Future Industries Partnership has launched to accelerate deployment of climate tech in heavy industries across Asia and the Middle East.
- Backed by HSBC, Third Derivative (an RMI accelerator), and Founders Factory, the program aims to connect startups in sectors like steel, cement, and chemicals with technical support, investor access, and corporate networks.
- The initiative addresses a key funding and commercialization gap for industrial decarbonization startups, which currently receive only 10% of venture capital and 3% of total global investment.
PRESS RELEASE — A new initiative to fast-track the deployment of innovative climate technologies has launched, with a mission to help decarbonize heavy industries such as iron, steel, cement, and chemicals across Asia and the Middle East.
The Future Industries Partnership, a three-year philanthropic program, will connect climate tech startups in the regions with the collective global expertise and networks of its founders: HSBC, RMI’s accelerator Third Derivative, and Founders Factory.
Production of industrial commodities is rapidly increasing across Asia and the Middle East, as their economies and cities continue to expand. However, nascent climate technologies in the industrial sectors only receive 10 percent of venture capital funding and only 3 percent of total global investment[1]. Scaling new technologies can be challenging as it requires specific skillsets and significant up-front capital to support development and deployment. It can also often face greater commercial and regulatory complexities.
At a time when much of the technology needed to decarbonize heavy industry has yet to reach material market adoption, the Future Industries Partnership hopes to select and support climate tech startups offering the most promising solutions across both regions. The Partnership will leverage the collective global expertise of the three partners to address the challenges faced by startups. Innovators will receive hands-on catalytic technical and commercial help to better plan, prepare, and reduce risks in order to get on a successful pathway to investment and deployment.
Beyond technical support, startups will gain access to an ecosystem of investors and corporate partners seeking opportunities to accelerate the net-zero transition in emerging markets. Launched in Singapore, which is home to 4,500 tech startups, entrepreneurs joining the program could particularly benefit from Singapore’s green economy focus and position as an international trade and finance hub to grow their network and expand into the region.
“The Future Industries Partnership is helping shape the future of global industry — where it matters most. Rapidly growing markets like Asia and the Middle East can lead on industrial decarbonization by choosing innovation and entrepreneurship. By applying our collective expertise and connecting startups with investors and corporate partners, we’re enabling breakthrough technologies to achieve commercialization and scale,” said Rushad Nanavatty, Managing Director of Third Derivative.
“At HSBC, we know that net zero innovation requires a constant flow of knowledge and talent to break down barriers to investment and large-scale implementation. By connecting startups, corporates, investors, and financial institutions, the Future Industries Partnership aims to use our global network to help take game-changing ideas and make them a reality, opening up opportunities for economic growth,” said Julian Wentzel, Group Chief Sustainability Officer at HSBC.
“Decarbonizing heavy industry is one of the greatest challenges in the climate transition. While breakthrough climate technologies show great potential, too many struggle to move beyond the lab due to funding gaps, complex regulations, and difficulty accessing industrial customers. Through the Future Industries Partnership and working with HSBC and Third Derivative, we’re addressing these barriers head-on. By combining deep technical expertise, global investor and corporate networks, and tailored commercial support, we’re helping future industrial leaders become bankable, scalable, and ready for deployment across Asia and the Middle East,” said George Northcott, President at Founders Factory.
Visit Third Derivative’s website for startup eligibility requirements and more information on how to get involved with the Partnership.
[1] According to the IEA, PwC and BNEF
