![]() ![]() Public research, policy and carbon markets provide the tailwind for climate tech… Climate tech development is enjoying a unique combination of levers, among which the ability to leverage IP from academic and public research : UK based Mimicrete comes out of Cambridge University research, US based Verdox’s CO2 removal technology was developed at MIT. New space-based Earth observation imaging systems and AI allow for natural resources monitoring and climate intelligence, as well as biodiversity monitoring. VC backed innovation can be adjacent but critical to climate tech and sustainability agenda Īnother area of high potential is carbon-recycling technologies, carbon transformation or even carbon sequestration solutions. Startups focusing on direct carbon capture and/or storage solutions from the air or at industrial sites are attracting major funding for their projects by corporates, on top of VC funding, which accounts in 2022 for $3.3B. Renewables, energy storage and management still receive the lion’s share, but VC industry is also fostering emergence of Green Hydrogen and New Generation nuclear energy (including fusion) breakthrough solutions.Īccording to International Renewable Energy Agency recent report, investment into climate tech would need to annually quadruple until 2050, while current pledges and plans lead to an emission gap of 16 GT.Ĭarbon Capture Utilization & Storage solutions are expected to address close to 15% of total CO2 reduction by 2050 VC industry is currently backing about 38% of startups engaged in the race for clean energy supply (also referred to as Energy Tech ), which received $26 billion funding in 2022, a 40% CAGR over 2018 – 2022 (4 times the global VC funding growth over that period). Re-imagining energy is on the critical path, as it c ontributes to 34% of global carbon emissions. We believe there are fundamental factors supporting startups engaging in sustainability and climate tech moving forward. After a record 2021 year, VC funding was not immune from the geopolitical context in 2022 and is taking a more conservative stance post recent negative newsflow, however the climate tech segment is showing some resilience. Interestingly, Venture Capital industry is now also directing investments into promising startup solutions active at building our future carbon-free world.
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