Catalysts for Green Economy: How Start-ups in Environmental, ESG, and RE100 Technologies Drive Global and Domestic Economic Growth

This review presents the significant economic contributions of start-up companies focused on environmental, social, and governance (ESG) principles and the RE100 initiative in mitigating climate change and fostering sustainable growth. Traditionally viewed as economic burdens, environmental concerns are now recognized as integral to long-term financial success. Leveraging Schumpeterian creative destruction, endogenous growth theory, and circular economy principles, these start-ups drive innovation, create new markets, and attract substantial investment, reallocating capital towards sustainable ventures. Investment trends in climate technology are analyzed in this review, highlighting increased venture capital, public market funding, and corporate partnerships. Case studies of Northvolt and Beyond Meat demonstrate successful scaling and market disruption, while the challenges faced by A123 Systems and KiOR underscore the need for robust business models, cost competitiveness, and patient capital. The findings emphasize that governments, financial institutions, and start-ups must collaborate through supportive policies, strategic funding, and a focus on scalable, economically viable solutions to maximize the profound and multifaceted economic impact of green innovation and maintain long-term investment in ESG-related projects.