Global cleantech-innovation-programme

Fostering Clean Technology Innovation in Emerging and Developing Countries

The Global Cleantech Innovation Programme

for SMEs

ENTREPRENEURIAL INNOVATION IS THE ANSWER TO THE WORLD’S MOST PRESSING ENVIRONMENTAL CHALLENGES, AND THE KEY TO ECONOMIC GROWTH

THE GEF, UNIDO AND THE CLEANTECH OPEN BRING PROVEN EXPERIENCE, DRIVING POWERFUL RESULTS

Innovators are developing ingenious solutions to major challenges in energy generation, distribution and storage, air and water pollution, waste management, new forms of transport and construction techniques.

Entrepreneurship thrives in countries where there’s minimal red tape, strong rule of law, ready access to venture capital, government funding and a vibrant support network for entrepreneurs.

Almost all net new jobs are created by growing small businesses.

UNIDO and the Cleantech Open, with the support of the GEF, have joined forces to launch cleantech platforms and competitions in developing and emerging countries, based on the Cleantech Open’s proven accelerator model originally created in Silicon Valley.

UNIDO has been supporting SMEs in developing countries for over 20 years.

The Cleantech Open runs the world’s largest cleantech accelerator, supporting innovators and entrepreneurs through extensive training, mentoring, showcasing and access to capital:

Over 865 startups have completed this process in the United States alone

Over 40% of reporting alumni companies have now raised capital totalling over $950M, creating thousands of jobs

Participating countries have access to UNIDO’s in-country resources and to the Cleantech Open’s events, training, materials and an online global platform connecting entrepreneurs to a global network of mentors, investors and experts.

[email protected] | www.cleantechopen.org/gef-unido

“We are creating an innovative, global program supporting small- and medium-sized enterprises by leveraging the Cleantech Open’s global platform with UNIDO’s international network and resources.”— Dr. Naoko Ishii, CEO and Chairperson, Global Environment Facility

THE GLOBAL CLEANTECH INNOVATION PROGRAMME FOR SMES

BUILDING AN INNOVATION AND ENTREPRENEURSHIP ECOSYSTEM

This programme is focused on enhancing both emerging cleantech startups in each country and the local entrepreneurial ecosystem and policy framework. A competition-based approach is used to identify the most promising entrepreneurs across a country, whilst a local acceleration programme supports, promotes and “de-risks” the participating companies and connects them to potential investors, customers and partners. As the best cleantech startups progress through the Cleantech Platform, they are continuously trained, mentored and assessed. The very best startups from each country are brought together for the

nals of the Global Competition in Silicon Valley, California, where they can both compete for the Global Prize and connect with potential partners, customers and investors from around the world.

Each country will leverage $1 to 2m in funding from the Global Environment Facility matched by $2m to $6m+ in co-nancing (including in-kind) from in-country public and private sector partners. The programme in each country is led

by a local executing partner, supported by local stakeholders and advisors. An integral part of this programme is the development of the institutional capacity of local implementing partners, which are typically government agencies focused on SME development, clean technology and innovation. Furthermore, this programme seeks to reinforce, strengthen and connect existing in-country initiatives rather than duplicate existing activities. The Global Cleantech Innovation Programme for SMEs will unite stakeholders to d, fund and foster entrepreneurs with solutions to address today’s most urgent energy, environmental and economic challenges.

In most countries, the initial GEF funding will be for three years with the intention of holding two to three cycles of the annual Platform. Some countries will have national programmes from the start; other countries will start regionally and experience grows. At the end of each three- year country programme, the aim is for each national Cleantech be fully up and running with sustainable support from the public- sector and particularly private-sector co-sponsors.

Venture Capital

Cleantech Open Participants & Alumni

Volunteers Judges & Mentors

Service Providers

Utilities

Government

Foundations

UniversitiesPrivate Sector

Institutes & National

Labs


Cleantechexpand asPlatform to

PARTICIPATING COUNTRY STATUS REPORT | SPRING 2014

After a successful pilot in South Africa in 2011, a growing list of countries is now engaged in the Global Cleantech Innovation Programme for SMEs. After the successful programme in South Africa, additional programmes in Malaysia, Armenia, India, Turkey and Pakistan have received funding. Under the GEF-5 cycle (July 2010 - June 2014) an additional two countries, namely Thailand and Russia, have requested UNIDO’s assistance to launch Cleantech Programmes, and several further countries have already expressed a desire to launch similar programmes under the GEF-6 replenishment cycle (July 2014 – June 2018). The diversity of applicants in size and region will allow a strong foundation for regional collaboration, South-South technology transfer, and

and innovation of environmentally sound technologies.


Armenia

South Africa

India Pakistan

Malaysia

Turkey

The Global Cleantech Innovation Programme for SMEs is built around four major activities of the Platform:

The Cleantech Programme will focus on four spe technology categories, with each country covering all or part based on national priorities. Applicants will be encouraged to use climate resiliency as a key design criterion. As theprogramme evolves, additional categories for innovation to protect the global commons will be added.

KEY ACTIVITIES

TECHNOLOGY CATEGORIES

TRAINING MENTORING

SHOWCASINGACCESS TO CAPITAL

National Academies, National Webinars and

Regional Training

Practice Judging and Business Clinics

Local and international mentors (generalists and

specialists)

Business Clinics

Relationship with Strategic Investors, Angel Groups

and V rms

Pitch Panels, Networking, Investor Connect

Regional events and showcases

National Conference and Global Forum

Press exposure

WATER EFFICIENCY

WASTE TO ENERGY ENERGY EFFICIENCY

RENEWABLE ENERGY


CASE STUDY 1 FOSTERING CLEAN TECHNOLOGY INNOVATION IN SOUTH AFRICAIn the lead up to the 2011 climate summit in Durban, COP17, UNIDO and the Government of South Africa launched a Clean Technology Innovation Competition, as part of the GEF-funded “Greening the COP17” project. The competition was organized by the National Cleaner Production Centre South Africa (NCPC), with support

manages the world’s largest cleantech accelerator network.

Building on the success of the 2011 Clean Technology Innovation Competition, UNIDO and the GEF have developed a new project to promote the Cleantech Innovation Programme for SMEs in South Africa, in cooperation with the Technology Innovation Agency (TIA) and the Department of Trade and Industry (dti). The project will primarily aim

of the most promising innovative local clean- energy technologies; (ii) coordinating various existing and planned national programmes, funds, competitions, etc. relating to the promotion and development of clean-energy technologies, and providing pre-selected candidates and applicants for them; and (iii) connecting the mostpromising startups of South Africa with mentors and potential business partners abroad. Building on the legacy of 2011 and the existing capacity, the Cleantech Programme will initially be based in Pretoria and Johannesburg and will gradually expand to other regions as the project progresses. The Cleantech Programme in South Africa will

mentoring from July to October 2014.


to promote an innovation ecosystem in South Africa by: (i) assisting the identification and early-stage nurtuing


*Now known as the Global Cleantech Innovation Programme for SMEs

CASE STUDY 2 ACCELERATING CLEAN TECHNOLOGY VENTURES IN MALAYSIA In early 2013, the Malaysian Industry-Government Group for High Technology (MiGHT) joined the GEF UNIDO Global Cleantech Programme for SMEs* to launch the Cleantech Platform in Malaysia. The aim of the programme in Malaysia is to develop a platform that will nurture and accelerate the next generation of cleantech entrepreneurs. In doing so, MiGHT will be f vision that by 2020, Malaysia will be a major player in the cleantech industry globally, impacting not just the region, but environmental, energy and economic challenges around the world.

On the 20 February 2013, MiGHT, the Cleantech Open and UNIDO, brought together a diverse range of stakeholders from the public and private sectors to discuss the launch of the programme in Malaysia. Importantly, the meeting not only forged new collaborations between many existing initiatives, but also secured spec c commitments from stakeholders especially the Ministry of Energy, Green Technology and Water (KeTTHA) and GreenTech Malaysia (MGTC).

In October 2013, in collaboration with KeTTHA and GreenTech Malaysia, the GEF UNIDO Cleantech Programme for SMEs* in Malaysia was publically launched in conjunction with the 2013 International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM 2013) and the 4th Annual Global Entrepreneurship Summit (GES 2013) with the aim of advancing green growth through global entrepreneurship.

The public launch of the Programme at IGEM 2013 coincided with an extensive media campaign and outreach activities to ensure the buy-in of SMEs and project partners. The application period for the 2014 Accelerator The Programme will open in May 2014, with selected entrepreneurs participating in intensive training and mentoring from July to October 2014. In October 2014, the national winner will be announced as part of IGEM 2014 and in November 2014, the winning teams from Malaysia will attend the Cleantech Open Global Forum in Silicon Valley, California to connect with investors, partners and potential customers from all over the world.

CASE STUDY 3 PROMOTING CLEAN ENERGY TECHNOLOGY INNOVATIONS AND ENTREPRENEURSHIP IN INDIAOn 3 May 2013, the GEF UNIDO Cleantech Programme for SMEs* was publicly launched in New Delhi led by the Ministry of Micro, Small and Medium Enterprises (MSME) in India and the national executing agency, the Federation of Indian Chambers of Commerce and Industry (FICCI). The launch event was attended by Dr. Naoko Ishii, CEO and

Madhav Lal, MSME Secretary, assured full support of the Ministry so that the goals of the project could be achieved. Ms. Naina Lal Kidwai, FICCI President, applauded the project stating that it can play a catalytic role in channelling innovative solutions for greening of SMEs in India and has the potential to bridge the gap between Cleantech innovators, Cleantech users, and Cleantech investors, who are the three important pillars of the Cleantech ecosystem.

This project aims to promote clean energy technology innovation and entrepreneurship in selected MSME clusters across India through a cleantech innovation platform and competition. The MSME (micro, small and medium enterprises) sector in India plays a vital role in the Indian economy, contributing 45% of manufacturing output, 40% of exports and employing more than 69 million people. Tackling climate change and seizing the economic opportunity for green industryrequires increased design, deployment and scaling of innovative clean technologies by SMEs across India.

Through new collaborations across disciplines and sectors, this programme will build the national capacity for clean technologies and develop a supportive local entrepreneurial ecosystem for MSMEs developing clean and resource

synergistic initiatives and entrepreneurs in countries around the world. Through the growing community of national partners in the GEF UNIDO Global Cleantech Programme*, selected Indian cleantech entrepreneurs will be connected to potential partners in Malaysia, South Africa and around the world. The most innovative cleantech entrepreneurs

investors from around the world at the annual Cleantech Open Global Forum in Silicon Valley.


*Now known as the Global Cleantech Innovation Programme for SMEs

CASE STUDY 4 NURTURING EMERGING CLEANTECH ENTREPRENEURS IN ARMENIA In February 2013, Armenia became one of countries in Eastern Europe to join the Global Cleantech Innovation Programme for SMEs* with the support of the Ministries of Nature Protection, Energy & Natural Resources and Agriculture. The Cleantech Programme in Armenia will be implemented in partnership with the Enterprise Incubator Foundation (EIF) and Small and Medium Entrepreneurship Development National Center (SMEDNC). The project will be based at Gyumri Techno Center with a goal to establish a cleantech startups/SMEs accelerator which will promote cleantech throughout Armenia and become a national center for attracting and developing innovative cleantech business ideas and turning them into globally marketable businesses.

Small- and medium-sized enterprises play a vital role in the Armenian economy, accounting for over 40% of the country’s GDP and nearly 20% of its export volume. Increased local innovation and adoption of clean technologies is vital since Armenia faces some key energy and economic challenges. Currently, the country imports nearly two-thirds of its energy, mostly from a limited number of foreign suppliers, and energy costs have risen considerably in recent years, placing greater strain on all businesses, especially SMEs. Greater adoption of clean technology has the potential not only to increase the competitiveness of Armenian SMEs, but also to create much needed high-value green jobs in a country with widespread poverty and underemployment.

The st Cleantech Competition in Armenia was launched and opened for applications on 29 April, 2014. It is expected that the competition will receive around 50 applications and up to 25 semi lists will be selected to take part in the intensive mentorship and training program through the cleantech acceleration programme to develop their business ideas into business models. The initial phase will primarily focus on the Yerevan, Shirak and Lori regions, but will also accept applications from all other provinces. The SMEs with the most innovative technologies will be brought to the Cleantech Open Global Forum in Silicon Valley and to key events in the region.


*Previously known as the GEF UNIDO Global Cleantech Programme for SMEs


CASE STUDY 5 PROMOTING CLEANTECH INNOVATIONS BY SMEs IN TURKEYIn recognition of the need for Turkish industry to ensure th cient use of energy in order to hold pace with the rapid growth process currently under way, the Cleantech Innovation Programme for SMEs in Turkey has been developed by UNIDO at the request of the Ministry of Science, Industry and Technology in February 2013. The Cleantech Programme in Turkey is hosted by the Scient and Technological Research Council of Turkey (TUBITAK) as the project’s lead executing agency.

SMEs are central to the Turkish economy, with 3.22 million SMEs operating in Turkey (99% of all companies) that constitute almost 80% of total employment and 27.3% of Turkey’s GDP. Thus, the removal of barriers currently hindering their development and expansion into clean- energy products is essential to stimulate the development of an enabling innovation ecosystem in Turkey. The Cleantech Programme will aim to act as an e ective catalyst to boost more vigorous implementation of existing programmes and provide a methodology and coordination platform to optimize and expand upon the support provided by existing programmes in Turkey.

In May 2014, the Cleantech Programme in Turkey has conducted a number of outreach activities with universities and project partners in Ankara, Istanbul and Izmir, promoting the project’s ben and establishing partnerships with public and private entities. The project will initially focus on these industry-intensive regions, before gradually expanding to other regions of the country. The winners of the respective competition categories will be invited to participate at regional events, such as those organized by the project partner, TUBITAK, and international events, such as Cleantech Open Global Forum in Silicon Valley and other forums.


CASE STUDY 6 FOSTERING COMMERCIALLY VIABLE CLEAN TECHNOLOGY STARTUPS IN PAKISTAN Given the sig cance and contribution of small businesses to the promotion of job creation and overall economic development of Pakistan, UNIDO has developed a GEF- funded Cleantech Innovation Programme for SMEs emphasising the promotion of innovations in clean technologies. Supported by the Pakistan Council for Science and Technology (PCST), National Productivity Organization (NPO), Pakistan Institute of Management (PIM), as well as the Centre for Climate Change and Development (CCCD), the project was approved by the GEF Secretariat in September 2013.

The Cleantech Programme in Pakistan focuses on fostering emerging and commercially- viable clean technology startups for fueling green industrial growth in Pakistan. The project will adopt the GEF-UNIDO Cleantech Programme ecosystem approach which, among others, includes close engagement with the private sector, scaling up the

momentum for sustainable industrial development and strengthening the policy framework as required. By workingclosely with SMEs, national ministries, academia, industrial associations, potential investors, partner agencies and autonomous research centers in the coun try and abroad, this project will establish an e ective awareness campaign and platform to mobilize interest among targeted bene ciaries and ensure the adequate buy-in of SMEs. Considering the complexities and diversity of Pakistan’s SME clusters, the Cleantech competition and accelerator will initially focus on the Punjab province, expanding to other provinces in due course. It is expected that each of the competitions will attract around 50 to 100 applicants, and from these applicants, around 10-15 semi nalists will be selected to receive further support as part of the accelerator programme. From these 10-15 teams, nalists, winners and runners-up will be selected by various panels of judges based on their submitted business models and investor pitches. The number of applicants s, nalists, winners and runners-up will vary from year to year, depending on the number of technology categories to be covered, success of the promotion campaign and prize categories.


If you are a country representative or a potential sponsor or partner, contact us now: David E. Rodgers | Senior Energy Specialist | The Global Environment Facility [email protected] | +1.202.458.9869 | www.thegef.orgKevin Braithwaite | Global Programs Director | Cleantech Open [email protected] | +1.415.462.0393 | www.cleantechopen.org/gef-unidoPradeep Monga | Director, Energy & Climate Change | United Nations Industrial Development Organisation [email protected] | +43.1.26026.3018 | www.unido.org

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JOIN THE NETWORK

We are focused on supporting the development of strong innovation

and entrepreneurship ecosystems around the world at a local, city,

state and regional level. The Cleantech Platforms and Competitions

that we are building, will not only identify the most promising

entrepreneurs in participating countries but will unite a diverse range

of local partners for the single goal of accelerating and supporting

the very best cleantech ventures. Our vision is a global programme

that enables an entrepreneur in Kuala Lumpur or Hyderabad to receive

mentoring from an expert in Johannesburg or Istanbul, license their

technology to a partner in New Delhi, Sao Paulo or Shanghai and secure

venture funding from Silicon Valley, Moscow or London.

The views expressed in this publication are those of the authors and do not necessarily reflect the views of the United Nations Industrial Development Organization (UNIDO). UNIDO does not warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information contained in the publication.

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