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Climate tech refers to technologies that are explicitly focused on reducing Greenhouse Gas (GHG) emissions or addressing the impacts of global warming.
Climate tech companies are reshaping the world’s largest markets with innovative sustainable technology. Funding has grown from $1.1bn (£840m) in 2017 compared to $11bn (£8.4bn) in 2021.
As the Government becomes more focused on policy change surrounding global warming and with the public demanding climate responsibility from brands, sustainable products are seeing higher growth rates than their non-sustainable alternatives. Meeting the challenges brought on by climate change with tech innovation, climate tech companies are creating ideal conditions for climate entrepreneurship.
Reports by Dealroom for Talis Capital, shows that in 2021, 13% of European venture funding went to climate tech start-ups. The European climate tech ecosystem is estimated to be valued at more than $104bn (£79.5bn) at the end of 2021 – more than doubling the valued estimate for the previous year.
The Rise of Climate Tech report shows that venture capital firms are investing the most money at 41%, followed by corporate investment (29%) and private equity (18%).
UK climate tech companies are driving forward the growth in investment for tech start-ups. Below we see some of the largest deals involving the tech companies.
Octopus Energy – Funding $1.2B – Octopus founders aim to invest £3 billion in hydrogen plants in Britain by the end of the decade after agreeing a deal with RES, the giant renewables group.
Newcleo – Funding $118M – This company is building the next generation system with the goals to eliminate the need for geological repositories by using a fast neutron flux avoiding production of long-life radioactive elements.
Highview Power – Funding $61.7M – Highview Power is designing Liquid Air Energy Storage (LAES) plants to service a multi-billion-dollar market.
Olio – Funding $53.1M – The App connects people together to gift their surplus food items instead of them being binned. The start up founded in 2015 now stands at five million users.
Carbon Clean Solutions – Funding $64.4M – This company specialises in Carbon Dioxide (CO2) recovery technology for industrial purposes. They have multiple research teams and facilities across the globe and commercialising its innovative energy-efficient CO2 capture.
For an industry to thrive you need a lot of people backing it and large investment flowing through it, and climate tech seems to be doing just that. Due to the large funding and opportunities within the climate tech industry, it will no doubt grow substantially over the next few years.
Date: May 9, 2022
Author: Morris