While climate tech only makes up 6% of the venture capital market, its presence has grown by more than 3750% in terms since 2013.
PwC’s new analysis demonstrates that the call for climate technology has developed across venture capital markets. In all, $16.3bn was invested into the area of climate tech and across the categories of data, carbon capture and storage (CCS), the built environment, industrial process, agriculture, transport and energy in 2019.
While climate tech still comprises 6% of the venture capital market, its representation has elevated more than 3750% in absolute terms since 2013. Development in climate tech has overextended development in Artificial Intelligence investment. Yet levels of investment in regard to climate tech are down from 2018 levels.
The analysis indicates that the growth has been impelled by corporate mandates to correspond with net-zero commitments and investors pouring more interest and investments into low-carbon markets.
PwC credits part of the growth to 300 companies that had committed to net-zero guidelines – including PwC. Also, a good number of companies have made large investments in the arena of low-carbon innovations.
Recently, Amazon promoted the inaugural beneficiaries of its $2bn Climate Pledge Fund, with organisations cultivating carbon removal technologies, nature-based carbon markets and electric vehicle (EV) inventions earmarked to benefit.
Microsoft has started a $1bn climate innovation fund, based on its own capital, to develop carbon reduction and removal technology. The technological leader aims to lower its carbon impact to below net-zero by 2030, with an extra objective of depleting carbon from the atmosphere that the company has released since its founding in 1975.
Consumer goods giant Unilever has revealed a new program of sustainability commitments, aiming to cease its contribution to deforestation, advocate regenerative agriculture, change to biodegradable ingredients and attain net-zero emissions for products by the year 2039 – implemented by a newly developed €1bn Climate and Nature fund.
Furthermore, the net-zero transition can be achieved with no financial burden on society. By escalating energy efficiency programs and deploying renewable energy generation capacity more quickly, the world could “technically and economically” transition to net-zero by 2050 for the price of less than 1% of global GDP yearly through to mid-century.
That is the primary funding of a report from the Energy Transitions Commission (ETC), promoted by 40 leaders from high profile energy corporations, financial entities, high-producing sectors such as steel and transport and bodies like the World Resources Institute (WRI). Corporate supporters include ArcelorMittal, Shell, Tata Group and Volvo; the overall objective for everyone is the achievement and presentation of climate tech, for the cause of a better world.