For climate investors, space may not be the first place to look. But the space economy is emerging as a critical enabler of sustainability on Earth. And if we’re serious about solving problems like climate change, food security, and sustainable infrastructure, space might be one of the most underutilised sectors we have.

There’s a paradox at the heart of mankind’s space exploration: the farther we go from Earth, the better we become at protecting it.

Space has always shaped how we see and treat our planet. When the world saw that pale blue dot rise over the Moon’s horizon in 1968, it sparked the beginning of the environmental movement. Because looking back at Earth from space changes how we think about it. Today, space offers something even more powerful than perspective: infrastructure.

What used to be the domain of national space agencies is now a rapidly expanding commercial ecosystem. With reusable rockets, falling launch costs, and a wave of private innovation, orbit is more accessible than ever. The space economy is now projected to exceed $1 trillion by 2040. And this isn’t about escaping Earth. It’s about protecting it. Space is quietly becoming one of the most powerful enablers of sustainable development on the planet.

Here’s why:

Satellites are climate tech in disguise

One of the clearest examples is satellites, which have quietly become essential tools for climate action. They track and assess the effects of climate change, monitor crop development to improve food security, and support more efficient farming by giving decision-makers the data they need to act.

This has been driven by a revolution in satellite technology. In the past decade, cost-performance has improved by a factor of 1,000, leading to a tenfold increase in Earth imagery.

That shift has made high-resolution satellite data a cornerstone of sustainable progress. Farmers can now pinpoint which fields need water, nutrients, or replanting, which cuts waste and boosts yields. Governments and companies use satellite data to track emissions, monitor biodiversity, and benchmark progress toward climate goals. In disaster-prone regions, satellites enable earlier warnings for wildfires, floods, and hurricanes. And in places where traditional broadband doesn’t reach, satellites are plugging people into the global economy, unlocking remote education, telemedicine, and digital livelihoods.

Without satellites, we’d be flying blind in the fight against climate change.

Microgravity unlocks breakthroughs Earth can’t

There are things you can do in space that are physically impossible on Earth.

In microgravity, materials behave differently. They don’t settle or separate the way they do on Earth. Crystals grow more evenly. Liquids mix with more precision. Metals cool into purer, stronger structures. These are breakthroughs that simply can’t be achieved under Earth’s gravity.

Take drug development, for example. Some pharmaceutical compounds form better crystals in space – structures that are more stable, more effective, and easier to analyze. That insight is already improving treatments back on Earth. Or look at semiconductors: in orbit, companies are testing chip manufacturing techniques that allow for ultra-thin layering, free from gravitational distortion or atmospheric interference. That could mean faster, more energy-efficient electronics at a time when every ounce of efficiency matters.

Even in materials science, space is opening doors we couldn’t previously unlock. Components made in microgravity can be lighter, cleaner, and stronger than anything we can produce on the ground. These innovations have the potential to reshape entire industries.

Space simply lets us make things Earth can’t. And those things – better drugs, better chips, better materials – can have ripple effects across the economy.

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But to scale, space must source its own supply chain

For all the promise of the space economy – the climate intelligence, the manufacturing breakthroughs, the global connectivity – it still leans on a fragile foundation: Earth.

Every satellite, station, and sensor we launch begins the same way. We mine raw materials here, refine them here, and burn billions of liters of fuel to lift them into orbit. That system is costly, carbon-intensive, and ultimately unsustainable.

If space is going to help build a more sustainable future, it has to become more sustainable itself. That starts with infrastructure that no longer relies entirely on Earth.

That shift is already in motion. A new generation of companies is building the backbone of a self-sustaining space economy: one that can source, build, and refuel using materials already in orbit. Companies like Karman+ are gearing up to tap into near-Earth asteroids, extracting water that can be turned into fuel, and mining metals that can support in-orbit manufacturing. It’s a bold but necessary step toward closing the loop on space infrastructure. 

As launch costs continue to fall, the space economy’s ability to enhance a lot of our best innovations could make it a focus area for both climate and generalist investors looking for high-potential sectors.

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Christian zu Jeddeloh,
Investment Manager
Norrsken VC