Climate Resilient Technologies Market Trends

Growth Drivers

• Rising Carbon Emissions Across the Globe – Rising carbon emissions can contribute to the occurrence of massive disasters, such as the recent wildfire outbreak in Australia caused by heatwaves and flash floods in Indonesia. For instance, higher sea temperatures associated with climate change have doubled the likelihood of drought in the Horn of Africa region. Extreme droughts in 2011, 2017, and 2019 have repeatedly wiped out crops and livestock. Moreover, the UN predicts that temperatures will climb this century to 3.2°C above pre-industrial levels, much above the 1.5°C threshold needed to prevent the worst climate impacts, even if all of the climate commitments of the Paris Agreement are met.

•  Increasing Government Initiatives – The National Adaptation Fund for Climate Change (NAFCC) in India aims to meet the cost of adaptation to climate change for the states and union territories that are specifically vulnerable to the adverse effects of climate change. The government set up a budget provision of USD 43 million for 2015-16 and 2016-17, with an estimated requirement of USD 22 million for the financial year 2017-18 for NAFCC. The projects under NAFCC prioritize the relevant Missions under National Action Plan on Climate Change and to emphasize the needs that build climate resilience in the areas identified under the State Action Plan on Climate Change.

• Growing Demand for Climate Resilient Technologies in Agriculture Sector – The climate has a big impact on agriculture. The development and production of crops are influenced directly or indirectly by changes in temperature, carbon dioxide (CO2), moisture, water availability, and other factors. In addition to contributing to global warming, rising atmospheric CO2 levels are changing the agricultural ecosystem. Moreover, overusing chemical pesticides and fertilizers has a negative impact on the sustainability of agricultural systems and the health of the soil. Therefore, the surging threats to ensuring food security, followed by the influence of the climate change on crop production is expected to boost the market’s growth. According to the World Health Organization, there has been increase in the number of people affected by the hunger accounting to USD 828 million in the year 2021.

• Increasing Demand for Pest Control Measures – According to estimates, insect pests generate losses of 13.6% annually worldwide and 17.5% annually in India. Insect pests continue to have a significant negative impact on agricultural output and human health despite decades of scientific advancement. On the other side, the host plant, natural enemies, or extreme weather circumstances can manipulate an insect species' population abundance, which ultimately results in a severe infestation of insect pests in the field.

• Growing Adoption of Resource Conservation Technologies – Over 125 million hectares of land worldwide are used for conservation agriculture, with the majority of those being in the USA (26.5 million hectare), Brazil (25.5 million hectare), Argentina (25.5 million hectare), Canada (13.5 million hectare), and Australia (17.0 million hectare).

Challenges

• Higher Cost of Climate Resilient Technology - As the technology is relatively new, the associated training and development costs are expected to make it costlier than established technologies. Investments of billions of dollars in both built and natural infrastructure are needed to close the infrastructure gap while adapting to climate change. For instance, according to the OECD, around USD 6.3 trillion per year is estimated to be needed for investment in infrastructure globally between 2016 and 2030 to keep pace with development.
• Lack of Awareness on Climate Resilient Technologies
• Lack of Availability of Professionals for the Operability and Functionality of the Critical Infrastructure Associated with these Technologies