Climate tech investment in the UK is on track to double this year after firms in the sector scooped up $7.5bn in the nine months to September, new research has revealed.
Investment into UK climate tech firms has accelerated rapidly this year from $4m in 2021, putting the UK behind just the US in terms of cash pumped into the sector, according to new research from start-up body Tech Nation.
The figures suggest investors have largely shrugged off fears of a looming recession so far despite rising interest rates and soaring inflation choking off an easy stream of cash.
Chief of Tech Nation Gerard Grech told City A.M. yesterday that steady investment into the sector would be crucial role in the fight against climate change.
“Around 40 per cent of emission reductions are still relying on technologies which are not yet mass market, so it’s imperative that we support the companies that are helping to drastically reduce our carbon emissions,” he said.
“Basically every Net Zero startup or scale up is another leap closer to decarbonizing the world and hopefully solving our climate crisis.”
The UK figures bucked a wider slump in climate investment across Europe and the US, as investment in the US, Germany and Sweden slowed.
The US has recorded a $2.14bn drop in climate tech investment so far this year, while Germany and Sweden have registered falls of $4.46bn and $2.17bn respectively.