At the same time as COP26, Dealroom and London & Partners published a report about global climate tech investment
trends since the Paris Agreement, concurrently, as a global booming of climate tech was taking place over the last few years, London had become the European capital of these investments.
Globally, 2021 was the best year in terms of climate tech investments. In total, $32 billion was raised all around the world. Europe has also a big role to play in climate tech. Since 2016, after the Paris climate accord, on average, the investments were multiplied by seven in Europe versus 4,9 in the world.
In addition to that, European investments, which represent eight billion dollars, are higher than the $4.1 billion of Asian investments in 2021. However, North America always represents the biggest part with $17 billion of climate tech investment but with a lower evolution.
416 climate tech companies in the capital
In this context, London put itself at the head of Climate tech in Europe. The dealroom’s report says: “With a thriving climate tech ecosystem, London is home to 416 climate tech companies, more than any other European city.” This huge number of start-ups brings the investments to more than $1 billion. According to the report, “London is one of the driving forces behind Europe’s rapid growth in climate tech.” More than the number of companies, their values were exploding last year to reach to $28 billion, more than the total of the last five years' values.
According to the report of London & Partners and Dealroom, most of the investments concern transportation, energy, and circular economy solutions. Three important areas, which represent the most carbon emissions in the world. Focus on it can allow a true impact on climate change, especially for transportation
A lot of different companies
Most of these brands are really new. One of them is Arrival, a British company which designs and makes electric and sustainable vans.
The brand explains: “We’re facing a drastic climate and ecological crisis that needs transformative solutions. This is the time for radical impact. Clean cities mean low carbon emissions and reduced air pollution. Our products are designed to be circular, so they last longer and can be repaired, reused and recycled.”
Arrival is one of the most valuable of the 416 climate tech companies, with $8.3 billion.
Another company which is really valuable is Octopus Energy which specializes in sustainable energy. The energy group estimate at $4.6 billion, created in 2015, already supply electricity to more than three million customers.
A lot of other brands came in the climate tech market with different ideas like Olio which distributes soon to expire food, Cervest which created a climate risk platform software and Depop, a marketplace for second-hand clothes.
All these brands contribute to put London as a real actor in climate tech with an increase of investments. This increase can have real consequences for fighting against global warming and climate change.
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