Cleantech Group has unveiled the 2026 APAC Cleantech 25 list, highlighting the region’s most promising private companies driving innovation in sustainability and clean technology. As fuel insecurity deepens and electricity demand rises, these innovators demonstrate practical solutions to challenges that once seemed improbable.
Spotlight on Breakthrough Solutions
The annual list recognizes companies that actively develop and deploy cutting-edge technologies. These range from AI-optimized data centers and solid-state fusion to sand-based thermal batteries, off-grid cold chains, green cement, and solar-reflective cooling systems.
Moreover, these companies address critical energy, industrial, and climate challenges across Asia-Pacific while simultaneously boosting economic growth and technological progress.
Industry Outlook: Innovation Set to Accelerate
Anthony DeOrsey, Research Manager at Cleantech Group, emphasized that innovation in energy generation, storage, and industrial decoupling from fossil fuels remains strong across the region. He noted that these trends were already intensifying before the outbreak of geopolitical tensions in the Middle East and are expected to accelerate further.
Rigorous Selection and Emerging Trends
Cleantech Group selected the companies through a detailed evaluation process. It combined insights from expert panels, market intelligence, and data-driven analysis. The criteria included technological innovation, scalability, partnerships, and investment traction.
As per press release, this year’s findings highlight several major trends shaping the cleantech landscape in Asia-Pacific.
Global Pressures Drive Regional Innovation
First, global geopolitical tensions—particularly in the Middle East—have disrupted supply chains and increased economic strain. Since Asia-Pacific relies heavily on imported oil, the region faces amplified challenges. Consequently, companies are intensifying efforts in energy generation, storage, and reducing dependence on fossil fuels.
Strong Investment Momentum Beyond China
Meanwhile, although overall venture investment appeared to decline in 2024 and 2025, the shift reflects the maturation of Chinese companies moving toward debt financing. When excluding China, investment activity across the rest of Asia-Pacific has remained strong. In fact, the first quarter of 2026 has already surpassed total deal activity seen in 2020.
Race to Build AI Infrastructure
At the same time, Asia-Pacific is accelerating its push into AI infrastructure. Companies are competing globally in data centers, semiconductors, and thermal management technologies. Japanese innovators, in particular, are advancing memory storage and heat dissipation materials. As GPU power demands increase, the need for efficient thermal solutions is becoming urgent.
Rise of AI-for-Cleantech
In addition, AI is increasingly being applied within cleantech itself. New companies across countries such as China, Malaysia, Vietnam, India, and Indonesia are leveraging AI to improve efficiency in energy systems and infrastructure operations. This shift marks a significant expansion of AI’s role in sustainability.
Surging Electricity Demand and Industrial Heat Challenges
Looking ahead, electricity demand across Asia will reach unprecedented levels. Growth will stem from digital services, air conditioning, industrial electrification, and electric mobility. Furthermore, heavy industries—especially cement, iron, and steel—will drive more than half of energy demand growth through 2035.
As a result, innovators are focusing on solutions like fusion energy, long-duration energy storage, and thermal energy systems for industrial heat.
Climate Adaptation Gains Ground
At the same time, climate adaptation technologies are gaining importance. Although they currently receive only a small share of investment, Asia-Pacific offers strong opportunities for growth. Extreme heat is already affecting daily life, increasing the urgency for cooling solutions and resilient food systems.
Therefore, this year’s cohort includes companies working on solar-reflective cooling, off-grid cold chains, and modular water treatment. These solutions also support “South-to-South” transfer, enabling innovations developed in one region to scale across other parts of the Global South.
Driving Collaboration and Investment
Finally, Cleantech Group produced the APAC Cleantech 25 with support from ADB Ventures and Twin Tower Ventures. The report serves as a key resource for investors, corporations, and policymakers seeking to engage with high-potential cleantech startups.
By showcasing emerging leaders and technological advancements, the initiative aims to accelerate collaboration and channel investments toward solutions that can deliver meaningful environmental impact.
