India ranks ninth in the list of top 10 countries for climate technology investment over the past five years and Indian climate tech firms received $1 billion in venture capital (VC) funding from 2016 to 2021, according to a new report released in London this week.
‘Five Years On: Global climate tech investment trends since the Paris Agreement’, by London & Partners and Dealroom.Co, analysed the trends in the sector since the last United Nations Conference of Parties (COP) in Paris and ahead of the in Glasgow next week – to be attended by world leaders including US President Joe Biden, . It found that venture capital investment into climate tech companies globally has skyrocketed since the Paris Agreement, with the US and China leading the global top 10 with $48 billion and $18.6 billion investment between 2016and 2021 respectively. The UK comes in at No. 4 with $4.3 billion after Sweden at $5.8 billion.
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“Countries around the world need to work together so that we can collectively change business practices and commit to net zero emissions,” said Hemin Bharucha, Country Director India, London & Partners – London’s business growth agency.
“The global tech industry plays a pivotal role in accelerating this global transformation and this is demonstrated in the rapid growth of VC investment into global climate tech companies. It is fantastic to see the UK and India among the top 10 countries for climate tech investment globally, with leading the way in Europe for the number of climate tech companies and dedicated VC funds,” he said.
The global top 10 is completed by France at No. 5 ($3.7bn), Germany at No. 6 ($2.7bn), Canada at No. 7 ($1.4bn), the Netherlands at No. 8 ($1.3bn) and Singapore tenth ($700m), after India. Overall, global climate tech VC investment soared from $6.6bn in 2016 to $32.3bn in 2021, an increase in funding by almost five times.
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According to the report, which analyses technology companies working to reduce Greenhouse Gas emissions or addressing the impacts of , 2021 investment levels have already exceeded the whole of 2020 for global climate tech investment, demonstrating the importance of the global tech industry in the fight against climate change.
Europe is found to be the fastest-growing region globally for climate tech, with European VC investment into climate tech firms seven times higher this year than in 2016 (up from $1.1 bn to $8bn). In Europe, London is described as one of the world’s most advanced ecosystems for climate tech, with its start-ups raising $3.3bn since 2016, accounting for 16 per cent of Europe’s total. London is also home to 416 climate tech companies, the biggest cluster in Europe.