Climate tech investment falls by 40% amid economic uncertainty

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The decrease in investment reflects market conditions more than a deliberate move away from climate tech, PwC said.

The financial services giant’s State of Climate Tech report for 2023 analysed more than 8,000 climate tech start-ups and more than 32,000 deals worth more than £400 billion.

Emma Cox, global climate leader at PwC UK, said: “The development and scale-up of climate technology is an essential part of meeting the climate challenge. “It is also encouraging to see a shift in the balance of investments towards technologies that can cut emissions the most. While overall investment numbers are down, there has been a rise in the share of climate tech private equity and venture capital as well as grants for start-ups working on higher emissions reduction potential technologies, PwC said.

Meanwhile, the proportion of capital going to technologies with relatively lower potential to reduce emissions has fallen. But the analysis found that the share of investment into the sector has almost doubled to 14% between Q4 2022 and Q3 2023.

 

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