Executives push for less regulatory “red tape” as climate tech innovations accelerate

Executives from the clean technology industry (commonly called cleantech or climate tech) are urging regulators to modernise and expand rules to keep pace with fast-moving cleantech startups developing technologies that could reshape global energy consumption.

Calls to reduce so-called “red tape”, a term describing regulatory restrictions or conditions that slow progress, like document processing times, have featured prominently at this week’s Semafor World Economy summit, which is hosted and reported by its namesake news outlet.

“The level of technology that we have access to is always changing,” said Kyle Clark, president and CEO of BETA Technologies, which is developing electric vertical takeoff and landing aircraft.

“The next step, ironically, is to continue to expand our regulatory acceptance of new technologies. The physics work. We just need the regulation to really get these things out”.

Greg Piefer, founder and CEO of nuclear fusion company Shine Technologies, said “there’s a lot happening on the regulatory reform front that’s really good,” but argued governments could go further. However, he cautioned that “throwing money at the problem is not the solution”, warning it risks creating “very inefficient companies” that can’t produce economically viable technologies.

Baiju Bhatt, founder and CEO of Aetherflux, said one of the biggest barriers to faster deployment is that “there’s not enough capitalism in space”.

He added that the intersection of artificial intelligence and the space sector is still “at the early stages of space becoming a more mature category for venture capital, for growth capital”.

The debate comes as volatility in fossil fuel markets, driven by the ongoing war against Iran, is expected to accelerate the shift away from oil and gas imports toward renewable energy sources.

Energy security has become a central concern for governments globally, with the Executive Director of the International Energy Agency Fatih Birol warning that several fossil fuel importers are likely to pause plans for new gas infrastructure.

Speaking at the summit, the IEA chief said the current energy crunch has challenged the long-standing perception of gas as an “affordable and reliable” energy source.

By Nazrin Sadigova