The emergence of a vibrant cleantech ecosystem throughout Latin America is the subject of our first-ever LATAM Cleantech 25. This region has generally not been known to be the birthplace of world cleantech leaders, but it is now positioning itself for a significant part in the upcoming tech themes. The South and Central American and Caribbean tech innovation ecosystem is beginning to have local expertise in biotechnology and agricultural sciences, a development that will become extremely important as climate adaptation needs become more urgent.
Unsurprisingly, Brazil and Chile have dominated Latin America’s history over the past few years as the main players in the venture and growth investments. Chile and Brazil’s agricultural products and crucial business materials export strengths give these countries an essential link to global demand markets, which has an impact on the DNA of innovators who start new businesses. This dynamic presents itself in the LATAM Cleantech 25 companies, for example:
- Utilizing a proprietary bacteria treatment for heap leaching, Ceibo ( Chile ) has developed copper extraction techniques that can recover copper in reserves with low ore concentration.
- The technology used by Chucao ( Chile ) has been developed to increase the recovery of valuable minerals ( copper and gold ) in mines. It also has applications in offshore and onshore aquaculture.
- In its cement production, Circlua ( Brazil ) uses recovered mining waste to replace highly polluting clinker.
We see two crucial developments that are restraining optimism, namely the strengthening of the Latin American tech innovation ecosystem and the comparative youth of the region’s innovators, despite the fact that Latin America has traditionally played an oversized role in world cleantech innovation.
A Growing Regional Ecosystem
Latin America’s tech innovation ecosystem is beginning to develop into a network of pan-LATAM funds and innovative support organizations that provide the framework for the continent, in addition to country-specific actors supporting inbound and outbound innovation in their particular nations. 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.
In earlier analyses, we have observed that the global cleantech innovation ecosystem has gotten younger in recent years, if venture capital investments are used as a proxy. This is a result of a more difficult investment environment, where larger late-stage rounds are more risky, and also because more innovative businesses are launching. Latin America, which has skewed yet younger than the rest of the world in recent years, has a particularly strong influence on this trend.
A Brand New Identity for LATAM Cleantech Innovations
Latin America’s investment mix is drastically different from that of the rest of the world. Latin America has a sizable share of agriculture and food innovation, and there are also many companies working on solutions to protect normal resources and utilizing nature-based solutions to combat climate change. Some examples from LATAM Cleantech 25 this year:
- Coral Vita ( Barbuda ) uses onshore coral farming to restore damaged coral reefs, thereby accelerating the reef regrowth process and acting as a crucial defense against ocean-related negative ecological ( and economic ) effects.
- Umgrauemeio ( Brazil ) uses in-situ computer vision and satellite imaging to identify wildfire outbreaks in forests and shorten recovery times.
- Cultivo ( Mexico ) uses satellite imagery to identify natural investments for ecosystem services and carbon offsets.
- SOS Carbon ( Dominican Republic ) has created a novel vessel to quickly and affordably collect sargassum without causing any harm to the environment, helping to promote the development of ocean life and making use of sargassum’s carbon and methane-capturing abilities.
Agriculture &, Food:  , Niche Advantages Beginning to Show
While the region’s Agriculture & Food innovators are more visible in the global numbers ( although the volatility is high year-to-year ), the average share of global cleantech investments is around 1 % of global deals. Agriculture, forestry, and fishing have added 6 % or more to GDP since 2020 in the region, which is not surprising given the importance placed on agriculture and food innovation.
In LATAM agriculture innovation, we can see innovations that could improve both the scalability of novel approaches to agricultural productivity ( see Sylvarum using electrostimulation in indoor farming to “program” metabolic properties ) as well as innovative ones ( see Chile’s Food for Future improving the insect biomass conversion process for animal feed ).
Notable is the fact that Latin American biotechnology capabilities are expanding not only as a strength in tale agricultural strategies but also in adjacent industries. A robust knowledge base in biotechnology will be a useful platform for innovation in the region, particularly as resource scarcity and climate adaptation imperatives require more agile horticultural systems.
Examples of biotech for agriculture 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 ) makes crops more tolerant to extreme weather conditions and flourish in degraded soil by using highly resilient microorganisms.
- Fungi Life ( Colombia ) reduces the need for petrochemicals in the development of cleaning products by producing 100 % biodegradable biosurfactants made from fungi for heavy industry and personal care products.
Looking Forward
The regional role in world cleantech is being demonstrated by the developments highlighted in the LATAM Cleantech 25. We are excited to witness the continued evolution of Latin America’s biotech ecosystem. With its unique strengths in biotechnology, agrarian innovation, and resource conservation, the region is poised to make a profound impact on global sustainability efforts.
Download your pleasant copy of the LATAM Cleantech 25 to see more companies, along with our analysis.
Register around for our pleasant 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.
