![]() The explosion of growth reflects the exponential growth of the sector. In fact, climate tech is set for another record year of growth with investment currently at $73.86 billion, despite the challenging economic environment. With 35,000 climate tech companies created since 2010 and climate tech stocks currently outperforming the Nasdaq, the sector is showing no signs of slowing. Today, climate tech is growing at a faster rate than ever. Governments and businesses alike have acknowledged we will need to invest, refine and deploy climate technologies across every industry if we are to scale down global emissions at a fast enough rate to achieve net zero. Over the last decade, climate tech has transformed from being on the fringes to being integral to the future of our economy, society and way of living. With all eyes slowly turning to Egypt, where COP27 will bring together the 198 countries who have signed the UN Framework on Climate Change, a major focus will be on how innovation can ratchet up the scale and effectiveness of current global progress towards net zero and bend the emissions curve to bring 1.5C within reach. This was closely followed by expanding into Europe and growing sales. 73% of companies applying to Tech Nation’s two Net Zero programmes in 2022 highlighted growing partnerships as a scaling challenge, placing it as the top scaling challenge faced by climate tech startups and scaleups.It promises to invest SEK 100 million per year towards climate strategies, and technological innovations in energy intensive industries. The nation is a leader in this space because of its climate innovation strategy. Sweden invests $53 per tonne of CO2 emitted, placing it second behind Estonia.Total investment in climate tech companies in Estonia reached over $1bn for the first time in 2022 and Estonia emissions are low (12 MMtCO2e or 0.04% of global emissions) due to its small population. Estonia, a country known for its strong startup and scaleup sector, outperforms all other countries for investment per tonne of CO2 emitted ($79).The US is home to the majority of high value climate tech firms, with 91 unicorns, including the likes of Rivian Automotive, creating emissions-free Electric Adventure Vehicles, Impossible Foods, and Tesla Motors - valued currently at $694.1bn. ![]() Globally there are 160 climate tech unicorns, companies valued at over $1bn, of which 6% are based in the UK.The rising tide of tech investment has not been the sole cause of spiking climate tech deals, climate tech investment as a proportion of all investment has increased from just over 3% in 2017 up to 16.88% in 2022.The recent high levels of climate tech investment are, in part, being driven by large rounds ($185mn +) into later stage companies 2022 is set to be another year for the books, with investment currently at $73.86bn.Notably, France and Germany have seen some of the highest increases in climate tech investment over recent years (Germany registering a 344% increase in investment from 2020-2021, for example) eclipsing Sweden, which was second only to the UK for climate investment in Europe in 2020. The US dwarfs other countries when it comes to climate tech raises - at over 4x investment raised by these pioneering firms than the UK, in second place.The global climate tech ecosystem is maturing, with 53% of total investment in 2021 in deals of over $250mn, compared to just 10.5% in 2017.Overall, climate tech represented 15.3% of all investment into tech startups and scaleups in 2021 ($111bn of $726.4bn raised in total). In 2021 climate tech companies globally raised more than enterprise software at $103.7bn, and in the footsteps of healthtech and fintech - companies in which sectors raised $119bn and $129.4bn respectively.2021 was a record year for climate tech investment, with over $111bn raised by startups and scaleups globally, of which $4bn was raised by UK companies, and just under $39bn by US based companies.The UK is second only to the United States for the number of climate tech startups and scaleups - with over 5,200 climate tech pioneers now operating, compared to the US’ 14,300.Globally, the number of emerging technology companies tackling the climate crisis has increased 4x, by over 35,000 firms since 2010 to reach 44,595 in 2022.
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