Over the past decade, the climate-tech sector has shown a significant upward trend in investment, despite facing certain challenges. Here are some key highlights:
Growth in Investment Entities
According to a PwC report, private market equity and grant investments in the climate-tech sector accounted for 11.4% in Q3 2023. This sector continued to grow at an annual rate of 10%, extending a decade-long upward trend. This indicates a substantial influx of new investors in the field.
Technological Developments and Investment Focus
In the past ten years, the costs of wind and solar energy have dropped by 70% to 90%, making them the most affordable sources of electricity in almost every part of the world. However, some technologies, like long-duration energy storage, are still in development, representing one of the most challenging areas in carbon reduction.
Investment Scenario in 2022
Despite a downward trend in investment in most European and North American countries in Q3 2022, the investment trends in the Nordic countries and the UK continued to grow. In 2022, climate-tech organizations secured funding amounting to $59 billion. Furthermore, according to a HolonIQ report, the total funding for Climate Tech VC reached $70.1 billion in 2022, marking an 89% increase from 2021.
These data and trends indicate that the climate-tech sector is not only attracting increasing investor attention but also that technological advancements and market maturity are rapidly propelling the development of this field. Despite macroeconomic and geopolitical challenges, climate-tech investment continues to demonstrate strong growth momentum.