Green startups in the Canary Islands: employment, training and innovation in new business models in EnergyTech

Due to their relevance for the sustainability of the country, our economy and the environment, the energy and ecological transition sectors are two of the economic engines on which the Spain Entrepreneurial Nation Strategy of the Government of Spain is based. In addition, these are fronts susceptible to profound improvements and efficiencies obtainable through technological innovation and the creation of quality employment through startups. One of the 10 driving forces of the plan is Energy and ecological transition, “a sector of fundamental relevance for the sustainability of the country, our economy and the environment”.

The Emprende Canarias Foundation has launched an initiative to promote startups in the sectors known internationally as EnergyTech and CleanTech with positive consequences and effects for the creation of self-employment. According to this Foundation, recently incorporated into the PIDI Network of CDTI, caring for the environment through renewable energy models, or betting on a conscious consumption of resources, are some of the parameters that mark a turning point in the energy industry . A trend that seems to be here to stay and that has generated a new space for innovative proposals and startups that have these maxims in their modus operandi.

EnergyTech and CleanTech startups are key on the path to sustainability and decarbonization outlined by government energy transition plans. The purpose of these plans is to evolve towards models of production, business and society that are less dependent on fossil fuels. In addition, ESG (environmental, social and good governance) criteria are gaining more and more weight in companies. In fact, regardless of their size, they implement their sustainability strategies with an interest in climate change and in the development of a low-carbon economy.

Companies in the EnergyTech sector put technology at the service of energy efficiency, sustainable mobility, new sources of energy generation, its storage and new business models. On the other hand, the term CleanTeach encompasses those companies that make use of new technologies with a positive environmental impact.

The World Economic Forum estimated a year ago the economic potential of environmental sustainability for the next 10 years at 8.7 billion euros and 395 million jobs, of which the energy area could generate 3 billion euros and 87 million of jobs in the next decade.

Thus, of the European Union funds for recovery after the pandemic, known as Next Generation EU, which Spain incorporated into the General State Budget for 2021, the largest amount corresponded to the Ministry of Ecological Transition and Demographic Challenge. This ministry has powers in the field of energy: almost 7,000 million euros, a quarter of the total received. A part of this budget materializes in grants for companies to reinforce their sustainability plans.

The EnergyTech and CleanTech startups are key to the creation of renewable energy models and to the commitment to a conscious consumption of resources. In fact, these are the parameters that mark the turning point towards the energy transition.

Startups: two major legislative changes in decades in the way self-employment is created

Spain is about to register two of the most far-reaching legislative changes in the way in which self-employment is created after decades. Indeed, the Council of Ministers approved last December 2021 the referral to the Courts of the Project of “Law for the promotion of the ecosystem of emerging companies”, better known as the Startups Law.

Startups Law finally opens the legal and tax framework to a type of company, startups, which differ from SMEs in the way of financing and attracting or retaining talent, which required a differentiated treatment, non-existent in Spain until now .

In that same Council of Ministers, the Create and Grow Law was also approved, which establishes the possibility of setting up a Limited Liability Company with a share capital of 1 euro, eliminating the legal minimum of 3,000 euros established up to now. The telematic constitution of companies is promoted through the single window of the Information Center and Business Creation Network (CIRCE), which guarantees a reduction in the terms for its creation and in notarial and registry costs. This Law was already approved on June 30 in Congress and is currently being processed in the Senate, its definitive approval being imminent.

The standard incorporates measures to improve business growth financing instruments that are alternatives to bank financing, such as micro-financing or participatory financing, collective investment and venture capital.

The “Spain Entrepreneurial Nation Strategy” marks the path towards the ecological transition and clean energy

Spain has set itself the challenge of becoming an attractive country for emerging companies through the Spain Entrepreneurial Nation Strategy. Its objective is to facilitate and promote its creation and development through four goals: investment, talent, scalability and public sector support for entrepreneurship.

The 'Spain Entrepreneurial Nation Strategy' aims for the Spain of 2030 to be an innovative nation and a focus of attraction for investment and for this it sets four goals. Regarding investment, he wants to speed up the process of maturing investment in Spain to strengthen the economy; In relation to talent, the strategy is designed to develop, attract and retain it with the aim of turning Spain into a talent paradise.

The scalability of companies is another of the goals, which is why initiatives are going to be promoted so that there is an increasing number of companies in Spain that can scale and grow exponentially to consolidate thriving sectors and generate more employment; The fourth goal of the strategy is to achieve an entrepreneurial public sector, to make the public sector an agile administration that generates favorable regulatory frameworks, promotes venture capital investment and boosts the lever of innovation.

To achieve all the goals, the High Commissioner for Spain Entrepreneurial Nation implements 50 measures that are included in the 'Spain Entrepreneurial Nation Strategy'. Among these measures is the aforementioned Law on Startups and others that have an impact on the fact that Spain needs an ecological transition. Now, that demand is even more imperative for clean energies, and from the changes derived from them, an extraordinary economic boost will come that we need more than ever.

Quality employment can only be associated with a search for sustainable wealth. Our country already has companies that work to curb the consumption of plastics and waste, that use only recycled materials, or that provide their customers with 100% green energy. A company can use its data to drive marketing campaigns, but it can also use the data to improve the environment.