Megadeals are becoming increasingly common and are driving much of the recent topline funding investment growth in climate tech. The average deal size has nearly quadrupled in H1 2021 from one year prior, growing from US$27m to US$96m. Climate tech now accounts for 14 cents of every venture capital dollar. This represents a 210% increase from the US$28.4bn invested in the twelve months prior. Investment in climate tech is continuing to show strong growth as an emerging asset class, with a total of US$87.5bn invested over H2 2020 and H1 2021 (second half of 2020 and first half of 2021), with H1 2021 delivering record investment levels in excess of US$60bn. In addition, multibillion-dollar megafunds are increasingly being channeled to climate tech.Ĭlimate tech scaling for impact: Trends from this year’s analysis Thousands of companies have made public commitments to net zero, set science-based targets, or sought to demonstrate their wider commitments to society through B Corp status. This sharper focus on ESG in private markets, alongside emerging regulations such as European Union’s Sustainable Finance Disclosure Regulation (SFDR), is driving growth and leading many companies and investors to alter their strategies. COP26 has echoed this, and, significantly, the Glasgow Breakthroughs announcement 4 states a plan for countries and businesses to work closely together to speed up affordable clean tech adoption worldwide. The latest Intergovernmental Panel on Climate Change (IPCC) report, published in August 2021, amplified the calls for drastic action. The investment landscape for climate tech is no different, as society increasingly feels the impacts of climate change. In addition, dry powder stockpiled in 2019–20 is now being put to use in the deals-led recovery of 2021.

New types of capital and funding mechanisms have resulted in significant new flows of investment into private markets. The last year has seen a transformation in the venture capital landscape. 3 A hot year for the climate, creating new urgency for a green recovery PwC’s analysis 2 this year explores how investors are securing both climate impact and commercial returns from this emerging asset class, helping keep the Paris Agreement’s goal of limiting global warming to below 1.5 degrees Celsius within reach.

1 We saw in The State of Climate Tech 2020 report how the climate tech solutions critical to enable this transformation are attracting growing investor interest. America Uruguay Uzbekistan Venezuela Vietnam Zambia Zimbabwe eSwatini/SwazilandĪrguably the greatest innovation challenge humankind has ever faced is staring us in the face: the world has ten years to halve global greenhouse gas emissions until 2050 to reach net zero. Rep.) Costa Rica Croatia Cyprus Czech Republic Côte d'Ivoire Denmark Dominican Republic Ecuador El Salvador Equatorial Guinea Estonia Finland France Gabon Georgia Germany Ghana Gibraltar Global Greece Guatemala Guinea Honduras Hong Kong SAR, China Hungary Iceland India Indonesia Interaméricas Ireland (Republic of) Isle of Man Israel ישראל Italy Jamaica Japan Kazakhstan Kenya Kosovo Laos Latvia Liberia Liechtenstein Lithuania Luxembourg Macedonia Madagascar Malawi Malaysia Maldives Malta Mauritius Middle East Region Middle East Bahrain Egypt Iraq Jordan Kuwait Lebanon Libya Oman Qatar Saudi Arabia United Arab Emirates West Bank Gaza Moldova Mongolia Montenegro Mozambique México Mexico Namibia Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Nigeria Norway Pakistan Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Romania Rwanda Senegal Serbia Singapore Slovakia Slovenia South Africa South Korea Spain Sri Lanka Sweden Switzerland Taiwan 臺灣 Tanzania Thailand Trinidad and Tobago Turkey Türkiye Uganda Ukraine Україна United Kingdom UK United States US USA U.S. Afrique Francophone Albania Andorra Angola Argentina Armenia Australia Austria Azerbaijan Bahamas Barbados Belgium Belgique België Bermuda Bolivia Bosnia and Herzegovina Botswana Brasil British Virgin Islands Brunei Bulgaria Cambodia Cameroon Canada Cape Verde Caribbean Cayman Islands Central and Eastern Europe Chad Channel Islands Chile China Colombia Congo (Brazzaville) Congo (Dem.

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