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What is Climate Tech?
Climate tech refers to any technology that has the potential to address climate change. It encompasses innovations that allow us to either mitigate GHG (greenhouse gas) emissions, deal with the impact of climate change, or enhance our knowledge of the climate. More than a quarter of VC funding went into climate tech in 2022.
The combination of sustainable practices throughout multiple sectors will allow us to get closer to a low-carbon economy, i.e. an economy based on energy sources that produce low levels of greenhouse gas emissions. The industry can be broken into multiple focus areas:
- Energy → generate, store, and use electricity
- Food and Agriculture → farming, preparation, and compost
- Transportation → batteries, fuel, and vehicles as well as the transportation infrastructure
- Information Technology → collect, store and display data on how people and systems affect climate change and how they are affected
- Built Environment → heating and cooling tech, sustainable construction, building management
- Materials → reduce emissions from materials (plastics, steel, etc.) and make efficient supply chains
- Carbon → capture and store greenhouse gases
Why invest in Climate Tech?
- Current impact. In 2022, the world was hit by $29 billion dollars worth of weather disasters. As of October 11, 2022, the U.S. sustained 15 weather and climate-related disasters with losses of $1 billion per each event. In Europe, extreme heat killed over 16,000 people as heatwaves hit mid-June and mid-July of this year.
- Corporate demand. More than one-third (702) of the world’s largest publicly traded companies now have net zero targets, up from one-fifth (417) in December 2020.
- Climate policy. National net zero targets set in domestic legislation or policy documents surge - from 10% of total GHG coverage in December 2020 to 65% in June 2022.
- Talent. The climate crisis is encouraging educators to establish climate literacy among students. A call for immediate action, intention, and interdisciplinary innovations means the talent density is growing. Students, new grads, and innovators are inherently working with a developed climate consciousness.
- Tech advances. Renewable is now the cheapest form of power today according to a report from the International Renewable Energy Agency. Investments in renewables in 2021 saved US $55 billion in global energy generation costs in 2022. Researchers forecast that by 2050, almost all applications will be cheaper with renewables.
Climate Tech VC Funds
Voyager Ventures
Voyager invests in early-stage climate technology companies creating the foundation of a decarbonized global economy and a livable future for all.
World Fund
World Fund is a European Climate Tech VC investing in startups that have the potential to save at least 100Mt CO2e per year.
Accelr8
ACCELR8 is an impact fund investing to accelerate the reduction and sequestration of greenhouse gases.
Energy Impact Partners
Energy Impact Partners LP (EIP) is a global venture capital firm leading the transition to a sustainable future.
2150
Constructive Capital for tech entrepreneurs who make urban environments more efficient and sustainable.
Planet A Ventures
Planet A is a venture capital fund partnering with European green tech start-ups that have a significant positive impact on our planet while building scalable businesses globally.
Pale Blue Dot
Pale Blue Dot is a seed-stage climate tech VC investing in reducing & reversing the effects of climate change & preparing for a new world.
Clean Energy Ventures
At Clean Energy Ventures we fund disruptive, capital-light technologies and business model innovations that can reshape how we produce and consume energy.
Additional Reading
