Technology companies taking action to fight climate change have raised a record $32 billion so far this year, according to a report released Tuesday.
According to CNBC, the amount of venture capital pouring into climate technology has already surpassed the 2020 total, the report by venture capital analytics firm Dealroom and advertising firm London & Partners said.
More than quadruple the investment
Investment in climate technologyhas more than quadrupled since 2016, when investors backed startups in this sector with just $6.6 billion.
This report comes as some of the world’s leading investors hail the potential of climate-focused startups.
On Monday, Blackrock CEO Larry Fink said he expects the next $1,000 billion worth of startups to be in the climate technology sector. Last week, Bill Gates said he expects eight or 10 Tesla-like companies to be created in this field.
Between 2016 and 2021, climate tech startups in the US raised the most funding, followed by similar companies in China, Sweden and the UK.
Europe leads the way
Europe is the fastest growing region globally in the climate technology sector according to the findings, which analyse technology companies working to reduce greenhouse gas emissions or address the impacts of climate change.
European capital investment in climate technology startups is seven times higher this year than in 2016, up from $1.1 billion to $8 billion, according to the report.
With the exception of the Bay Area in California, London is home to the largest concentration of climate technology startups, according to the report. In particular, 416 climate technology startups have been created since the Paris Climate Agreement. According to the report, climate tech startups in London are collectively valued at $28 billion.
Google’s search competitor Ecosia, which uses its advertising revenue to plant trees, announced on Tuesday the launch of a new €350 million climate tech venture capital fund to support startups across Europe.
“Our goal is to solve climate change,” Ecosia CEO Christian Kroll told CNBC ahead of the launch on Tuesday, just days before the upcoming 2021 UN climate change conference in Glasgow, known as COP26. Ecosia has planted 136 million trees so far.
Pressure on world leaders and CEOs to significantly reduce greenhouse gas emissions is mounting as scientists continue to warn that the Earth is rapidly heading towards a climate catastrophe.
The report by Dealroom and London & Partners was released to coincide with COP26.
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