Our first-ever LATAM Cleantech 25 showcases the emergence of a dynamic cleantech ecosystem across Latin America. Historically, this region has not been seen as producing global cleantech leaders, but it’s now positioning itself for an important role in the cleantech themes of the future. Regional capabilities in biotechnology and horticultural sciences are beginning to transfer into the South and Central American and Caribbean cleantech innovation ecosystem – a development that will become increasingly critical in the face of compounding climate adaptation needs.

Not surprisingly, Brazil and Chile have played most prominently in the records of venture and growth investments in Latin America over the past few years. The export strengths of Chile and Brazil in agricultural products and critical industrial materials provide these nations with an invaluable link to global demand markets, influencing the DNA of innovators launching ventures. This dynamic presents itself in the LATAM Cleantech 25 companies, for example:

• Ceibo (Chile) has developed copper extraction techniques capable of recovering copper in reserves with low ore concentration by leveraging a proprietary bacteria treatment for heap leaching.
• Chucao (Chile) has developed equipment that uses nanobubbles to increase recovery of valuable minerals in mines (copper, gold) and also has applications in offshore and onshore aquaculture.
• Circlua (Brazil) is using recovered mining waste to replace highly polluting clinker in cement production.

While Latin America has traditionally had an undersized role in global cleantech innovation, we see two critical developments that are shifting optimism: 1) the strengthening of the Latin American cleantech innovation ecosystem and 2) the relative youth of the region’s innovators.

A Growing Regional Ecosystem

The cleantech innovation ecosystem in Latin America is beginning to materialize into a network of pan-LATAM funds and entrepreneurial support organizations providing the fabric across the continent, complementing country-specific actors supporting inbound and outbound innovation in their respective countries. This is reflected in the mix of this year’s expert panelist group with public-private partnerships (e.g., Fundacion Chile) and corporate-backed funds (e.g., Vale Ventures – Brazil, Vista – Argentina) as key international nodes of innovation.

We have noted in previous analyses that – if using venture capital investments as a proxy – the global cleantech innovation ecosystem has gotten younger in recent years. This is partially a result of a more challenging investment environment where larger late-stage rounds are riskier, but also a matter of more new companies launching. This trend is especially pronounced in Latin America, which has skewed even younger than the rest of the world in recent years.

A Unique Identity for LATAM Cleantech Innovation Emerges

The mix of companies receiving investment in Latin America differs significantly from that of the rest of the world. There is an observably high percentage of Agriculture & Food innovation in Latin America, there is also a significant presence of companies developing solutions for the protection of natural resources and leveraging nature-based solutions to reduce climate hazards. Some examples from this year’s LATAM Cleantech 25:

• Coral Vita (Barbados) uses onshore coral farming to restore degraded coral reefs, accelerating the reef regrowth process and providing an important hedge against negative ecological (and economic) impacts of climate effects on oceans.
• Umgrauemeio (Brazil) provides in-situ computer vision paired with satellite imaging to detect wildfire outbreaks in forests and streamline reaction times.
• Cultivo (Mexico) uses satellite imagery to identify natural investments for carbon offsets and ecosystem services.
• SOS Carbon (Dominican Republic) has developed a novel vessel that collects sargassum quickly and cheaply without ecosystem damage – supporting ocean life development and leveraging the carbon and methane-capturing properties of sargassum.

Agriculture & Food:  Niche Advantages Beginning to Show

While the LATAM share of global cleantech investments averages at around 1% of global deals, the region’s Agriculture & Food innovators are more visible within the global numbers (albeit with high volatility year-to-year). It is not surprising that such an emphasis on Agriculture & Food innovation would play such a prominent role in LATAM cleantech innovation – agriculture, forestry, and fishing have comprised 6% or more of value added to GDP since 2020 in the region.

In LATAM agriculture innovation, we can observe innovation that may advance the scalability of emerging approaches (see Chile’s Food for Future improving on the insect biomass conversion process for animal feed) but also novel approaches to agricultural productivity (see Sylvarum using electrostimulation in indoor farming to “program” metabolic properties).

Of note is that biotechnology capabilities in Latin America are emerging as a source of strength in novel agricultural approaches, but also in adjacent industries. With certainty, a strong knowledge research base in biotechnology will provide a valuable platform for innovation in the region, especially as climate adaptation and resilience imperatives will demand more adaptable horticultural systems, and resource scarcity will require the ability to produce alternative inputs to industrial processes.

Some biotech for agriculture examples from this year’s LATAM Cleantech 25:

• Foreslab (Peru) is using biotechnology to improve native genetic diversity, allowing native plants and fruits to thrive.
• Infira Bio (Argentina) is a plant genetics company developing perennial crops for improved yield and resilience.
• Puna Bio (Argentina) is using highly resistant microorganisms to make crops more resistant to extreme weather conditions and able to thrive in degraded soil.
• Fungi Life (Colombia) is producing 100% biodegradable biosurfactants derived from fungus for heavy industry and personal care products, reducing the need for petrochemicals in cleaning product development.

Looking Ahead

The developments showcased in the LATAM Cleantech 25 are a testament to the region’s growing role in global cleantech. We are excited to witness the continued evolution of Latin America’s cleantech ecosystem. With its unique strengths in biotechnology, agricultural innovation, and resource conservation, the region is poised to make a lasting impact on global sustainability efforts.

Download your complimentary copy of the LATAM Cleantech 25 to see more companies, along with our analysis.

Register here for our complimentary webinar, Exploring Cleantech Innovation in Latin America and the Caribbean: A Deeper Dive into The LATAM Cleantech 25, on 14 January at 11:00 AM EST | 8:00 AM PST | 4:00 PM GMT.