Skip to main content
 

Is Global Turmoil Fuel for Climate Innovation?

by
Senior Engagement Manager

When Trade Breaks Down, Innovation Steps Up  

The global economic order is in flux, but it may be an opportunity for innovation. The status quo that has existed since the 1990s—one of globalisation and seamless transnational trade—is under pressure. Countries are increasingly willing and able to weaponise supply chains to pursue strategic aims, disrupting energy, agricultural and commodity markets through tariffs, export controls, sanctions, and, in extreme cases, military intervention. In response, states are turning inward, building national resilience to withstand increasingly frequent economic shocks and investing in domestic capacity to meet demand for power, nutrition, and materials. But with access to traditional sources of supply more uncertain than ever, new solutions will be essential.  

This paradigm shift might be the shock necessary to catapult climate technologies into the mainstream—accelerating the adoption of renewable energy, food-tech innovations, and alternative materials. Small innovators will play an outsized role in this transition. With the agility to challenge established systems and the creativity to reimagine legacy industries, they are uniquely placed to lead this new industrial wave.  

In 2024, the UK met 50.8% of its domestic energy demand with renewables—a significant milestone. Yet the remaining 50% was largely powered by imported fossil fuels, sourced mainly from North America and the Gulf. The situation is even starker elsewhere: Taiwan relied on imports including liquefied natural gas (LNG) for 98% of its energy generation during the same period. These supply lines are fragile—Chinese naval drills increasingly simulate blockades of Taiwan’s LNG routes, while the UK’s own access to energy imports is vulnerable to political instability in Washington. For countries like these, developing domestic renewable energy is not just about climate goals—it’s about national security. But wind turbines and solar panels alone won’t suffice. These intermittent sources require a flexible, expanded grid and robust long-duration energy storage systems to deliver power reliably and independently.  

Recent blackouts in Spain and Portugal have shown what happens when this resilience is lacking. To build a secure energy system, innovation must reach across the entire energy value chain—from generation and storage to transmission and use.  

Take batteries. Lithium-ion batteries currently dominate the sector, but they come with serious drawbacks. Their performance degrades over time, their storage duration is limited, and their production depends on scarce materials such as lithium, cobalt, and nickel—many of which are concentrated in politically unstable regions. New battery chemistries are emerging that offer a way out. Technologies like sodium-ion, and flow batteries—many of which use abundant, non-toxic, and locally sourced materials—are gaining momentum. These innovations could cut dependence on critical minerals, reduce costs, and enable longer-duration storage, an essential step to integrate renewables into the grid. Crucially, many of these technologies are being developed by startups and scale-ups that are rethinking energy storage from first principles.  

The same applies to other critical sectors. Food security is at risk not only from climate change and growing populations, but also from geopolitical volatility—tariffs, export bans, and disrupted trade routes can all restrict access to essential food imports. As with energy, the answer lies in sustainable, domestic solutions.  

The UK currently imports nearly half of its food , with fruits and vegetables especially reliant on European and North African suppliers. But these routes are becoming more fragile. During the COVID-19 pandemic and again in the wake of Brexit, UK supermarket shelves stood empty due to sudden supply shocks. More recently, trade disruptions linked to conflicts in Ukraine and the Red Sea have further highlighted our dependence on global flows. The urgency is even more acute in countries like Singapore, which imports over 90% of its food. In response, it has launched a bold "30 by 30" initiative—aiming to produce 30% of its nutritional needs domestically by 2030. This is being driven by cutting-edge agri -tech: vertical farms, alternative proteins, and urban aquaculture. Back in the UK, similar innovation is beginning to take root. Take GrowUp Farms , based in Kent—a vertical farming company using renewable energy and precision hydroponics to grow leafy greens year-round, regardless of weather or global supply chains. Their facility can grow over a million plants a week, using 94% less water than traditional farming, and without the need for imported fertilisers or pesticides.   

Future-proofing food systems will need to go beyond the farm, potentially reimagining the very crops we rely on. Traditional breeding methods can’t keep pace with today’s challenges. Rising temperatures, soil degradation, and water scarcity demand crops that are more resilient, more productive, and more resource-efficient. The UK is already a leader in plant science, with institutions like Rothamsted Research and the John Innes Centre pioneering breakthroughs in crop genetics. Today, these efforts are being supercharged by advances in synthetic biology. Emerging programmes are exploring how to redesign plant genomes at scale—engineering crops that can thrive in drought, capture more carbon, or even produce valuable new materials. Researchers at the Earlham Institute are developing high-yield, climate-resilient legumes that fix nitrogen naturally—reducing the need for synthetic fertilisers and cutting agriculture’s carbon footprint.   

The fragmentation of longstanding global trade patterns is a source of considerable uncertainty—but this can be a catalyst for innovation. There is an opportunity across energy, food, and materials to replace the old model of cheap imports and just-in-time logistics with a more robust system of local production, smarter systems, and resilient infrastructure. This is not a retreat from global engagement, but a strategic reinvestment in domestic capacity. Realising this vision will mean backing the smaller innovators working to reshape legacy industries. Success will not only bring security in turbulent global times, but could render our economies more sustainable.