Climate innovation

While the energy transition sector has been under pressure over the last year, climate solutions remain in demand given that 2023 recorded the warmest weather on record, rising nearly 1.5°C above the pre-industrial age. According to Sightline Climate’s annual report on climate technology, venture funding for the sector fell 30% year-on-year to USD 32 billion. However, that decline reflected a greater softness in the market, as total venture investment fell 35% year on year to USD 345 billion, according to Pitchbook. Climate technology investment deal count fell only 3% year-on-year as investors placed smaller bets on a wider set of solutions. Notably, in the hard-to-abate industrial sector, climate technology funding rose 10% year to a still modest USD 5.3 billion.

Source: Sightline Climate, January 2024