Which clean technologies attract the most investment?
Clean tech, often referred to as climate tech, is the umbrella term for a set of technologies that aim to reduce negative environmental impacts through sustainable practices or processes. This includes water treatment, waste management, and technologies that can reduce greenhouse gas emissions, such as renewables, electrified transportation, and carbon capture.Although clean tech focuses on several different areas, renewable energy has historically received the largest proportion of funding, with more than two trillion U.S. dollars invested into the sector in the last decade alone. In 2022, annual global investments in renewable energy reached a record high of almost 500 billion U.S. dollars, with solar PV investments accounting for roughly 60 percent of this total. Electrified transportation was also a key area of investment in 2022, receiving almost as much as renewable energy.
Meanwhile, global VC funding in climate tech startups reached a high of 70.1 billion U.S. dollars in 2022. However, funding is forecast to halve in 2023 as investment slowed due to factors such as economic uncertainties and the general slowdown in global VC funding.
