Across Southeast Asia, the climate policy laboratory is humming in response to rising emissions and net-zero timelines that are creating both urgency and opportunity.
Singapore is ratcheting up the region’s first carbon tax. Vietnam has flipped the switch on a national emissions-trading scheme. Indonesia is running a carbon exchange that already counts more than 1,600 participants. And Thailand recently approved its first economy-wide carbon levy. These moves signal a growing urgency and a shared recognition that coordinated climate action isn’t just possible — it’s essential.
From sweeping carbon pricing frameworks to new green infrastructure mandates, policy shifts — outside of the United States, that is — are finally catching up to the urgency of our climate crisis. Yet regulation and policy alone won’t get us to net zero.
To meet the moment, we need innovation that can scale, and we need investors willing to take bets on the technologies that will power the next industrial revolution. Even as policy headwinds in some countries threaten to hinder progress, venture capital must double down on climate investments with the potential to scale.
Backing breakthrough technologies: Venture capital steps up
Our goal at SeaX Ventures is ambitious but measurable: drive 1% of GDP growth in Southeast Asia and cut 1% of global carbon emissions. That’s why we launched SeaX Zero — a $6 million dedicated climate tech fund aimed at backing bold solutions with global potential. We’re investing in companies around the world, building breakthrough technologies in fields ranging from advanced science and sustainable farming to clean energy technologies.
Take fusion energy, for example. It used to be a punchline, but now it’s a policy priority. Last year, the U.S. Department of Energy announced a combined $1.48 billion in fusion investment, and the UK and Japan also joined forces to fast-track commercial fusion development.
We’re backing this vision through our investment in Type One Energy, a U.S.-based fusion company developing stellarator technology with the potential to bring clean, abundant energy to the grid within the next decade. Government funding opened the door, but venture capital is what’s fostering the growth and bringing these reactors to life.
Tackling climate tech from a consumption angle, we’re also investing in companies radically rethinking emissions-heavy industries from the ground up. The global meat industry is responsible for nearly 15% of all greenhouse gas emissions. That’s why Hoxton Farms, a UK-based company growing cultivated animal fat for use in alternative meats, is also part of our investment portfolio. It’s not just about food innovation; it’s a climate solution targeting one of the most carbon-intensive industries in the world.
These companies are just two examples in a thriving field of climate pioneers reshaping the fundamentals of how we power our economies and feed our populations.
Venture capital must double down
While Southeast Asia is moving forward on the policy front, the United States is regressing. Despite Biden-era wins for climate, such as the Inflation Reduction Act, the current administration has deprioritized climate investment in response to shifting political winds and budgetary pressures. Key climate office staff have exited; public clean energy loan programs are under scrutiny; and the sense of urgency to solve the climate crisis that once propelled leadership in the sector is fading.
Venture capital has a unique responsibility here: to fill the gap the government has created and replace the momentum that’s been lost. That means betting early on climate-driven companies. SeaX Ventures is backing frontier technologies and founders developing solutions with global relevance — because the urgency of rising emissions and slow net-zero progress also reveals a window of opportunity. Our fund is built to nurture breakthrough technologies to make a real impact because these are the solutions that can exponentially move the global emissions needle.
We need more of this type of investment — and fast. As climate timelines compress, we can’t afford to wait. We need a global coalition of innovators, funders and policymakers who understand that disruption isn’t a threat; it’s the only way forward.
Whether policy is thriving or faltering, venture capital must keep pushing. Strong regulation can accelerate climate tech, but even the best policies can’t build companies. Whether regulations are accelerating momentum or introducing new uncertainty, it’s on investors to keep the innovation engine running.
Dr. Kid Parchariyanon is the founder and managing partner of SeaX Ventures.
Guest posts on ImpactAlpha represent the opinions of their authors and do not necessarily reflect the views of ImpactAlpha.
