Solving climate and development challenges in the developing world through cleantech clusters
Summary
The white paper proposes using cleantech clusters—groups of co-located firms and institutions—to overcome the slow adoption of climate solutions in developing countries. It advocates for the creation of independent, non-profit cluster agencies to coordinate ecosystems, attract investment, and create jobs, citing the success of organizations like GreenCape and Clean in South Africa, Denmark, Brazil, and Colombia.
Key insights
- Developing countries face a significant shortfall in climate finance, which is exacerbated by bureaucratic hurdles and a lack of project pipelines at the local level, hindering the implementation of adaptation and mitigation strategies.
- Cleantech clusters can drive economic development in Africa by addressing critical gaps in electricity access and agricultural productivity through decentralized solutions like solar PV and precision agriculture.
- A cleantech cluster agency acts as a neutral, independent intermediary that uses a 'triple helix' structure—integrating research institutes, business (SMEs), and government—to build trust and remove systemic barriers to investment.
- To be successful in the developing world, cluster agencies must prioritize job creation and investment attraction to align with local political priorities and improve 'institutional thickness'.
- GreenCape has demonstrated the impact of the cluster model in Southern Africa, facilitating over $2.4 billion in green economy investment and creating more than 19,000 local jobs since 2010.
- The Danish agency Clean has successfully replicated its cluster model in other regions, supporting the establishment of the Greennova Hub in Brazil (2022) and the Colombia Cleantech Cluster (2023).
- The International Cleantech Network (ICN) provides a global framework for 23 regional clusters, connecting over 7,000 SMEs and facilitating cross-border innovation through its Solutions Platform.
Cite the original document
- APA
- GreenCape (n.d.). Solving climate and development challenges in the developing world through cleantech clusters. https://greencape.co.za/wp-content/uploads/2024/11/GC_Clean-Tech-White-Paper_DIGITAL_Single-Pages.pdf
- Chicago
- GreenCape. Solving climate and development challenges in the developing world through cleantech clusters. n.d. https://greencape.co.za/wp-content/uploads/2024/11/GC_Clean-Tech-White-Paper_DIGITAL_Single-Pages.pdf.
- Wikipedia
- {{cite report |author=GreenCape |title=Solving climate and development challenges in the developing world through cleantech clusters |url=https://greencape.co.za/wp-content/uploads/2024/11/GC_Clean-Tech-White-Paper_DIGITAL_Single-Pages.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{greencapendsolving, author = {{GreenCape}}, title = {{Solving climate and development challenges in the developing world through cleantech clusters}}, institution = {GreenCape}, url = {https://greencape.co.za/wp-content/uploads/2024/11/GC_Clean-Tech-White-Paper_DIGITAL_Single-Pages.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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