As we approach Earth Day 2023, new research suggests that although UK climate technology is playing a crucial role in tackling global climate change, challenges in accessing funding and finding the right talent are hindering the industry's progress.
A survey conducted among Climate Tech leaders revealed that 62% of them consider achieving Net Zero emissions impossible without the assistance of technology. Additionally, 82% of the respondents have identified Climate Tech as a priority investment area.
63% of the Climate Tech leaders believe that there is not enough emphasis on addressing climate change, a new survey by London Tech Week found. Only 26% of them received funding within the last 12 months, while 73% did not. Lastly, 32% of ClimateTech leaders had to approach five Venture Capital funds to secure funding.
As we approach Earth Day 2023, new research suggests that although UK climate technology is playing a crucial role in tackling global climate change, challenges in accessing funding and finding the right talent are hindering the industry's progress. This is based on the findings of a survey conducted among more than 900 ClimateTech leaders, gathered by London Tech Week, scheduled to take place on 12-16 June 2023. The event's centrepiece will be the ClimateTech Summit, which brings together a vibrant global community of innovators, venture capital firms, corporate partners, academia, and government entities, working towards achieving net-zero emissions.
The survey revealed that over half (62%) of the global respondents believe that achieving Net Zero emissions is not possible without technology, while 63% of them believe that insufficient attention is given to addressing climate change as a top priority.
Investing in Technology to Achieve Net Zero Emissions
Businesses are showing a keen interest in investing in Climate Tech, with a significant 71% of them focusing on the food tech/agritech industries, according to recent data. Energy and Biodiversity/Environment are also high on the investment list, with 47% of respondents investing in each area. Demonstrating a commitment to the sector, a whopping 71% of ClimateTech leaders invested in 1-5 Climate Tech companies in the past 12 months.
However, the survey results indicate a decline in funding accessibility, with 18% reporting a significant decrease in investment compared to previous years. Only 26.47% received funding over the last 12 months, while 73.53% did not. Other significant trends include:
• Venture Capital being the primary source of funding (21%)
• Insufficient funding being a major challenge this year (47%)
• Finding suitable talent being another key obstacle (29%)
• Community support for ClimateTech
When seeking advice, more than a third (44%) of respondents look to communities like ClimateTech for support, according to recent data. Other popular options include seeking advice from fellow founders (32%), attending events such as London Tech Week (24%), participating in accelerator programs (24%), and finding mentors (24%). Elevating Founders, a startup program, is also a viable option for 14% of respondents.
Tessa Clarke, Co-founder of OLIO, emphasized the significance of investment in ClimateTech in 2023. Despite exceeding FinTech investment for the first time, there has been an enormous decline in overall VC investment, leaving many ClimateTech founders struggling to access the capital they need.
Ways technology can help combat climate change
ClimateTech refers to the application of technology to tackle climate change and its associated environmental problems. It includes various technological solutions such as renewable energy, smart grids, carbon capture and storage, energy efficiency, and sustainable agriculture, among others. The main goal of ClimateTech is to reduce greenhouse gas emissions and help society transition to a low-carbon, sustainable economy. ClimateTech involves a broad range of stakeholders, including startups, entrepreneurs, investors, academics, policymakers, and individuals, all working towards a common goal of mitigating the effects of climate change.
Global tech leaders suggest several ways technology can help combat climate change, such as:
• Using renewable energy sources like wind, solar, and geothermal power to reduce dependence on fossil fuels and lower carbon emissions.
• Accelerating the allocation of capital and investment by businesses into new supply chains.
• Developing a carbon credit system and offering financial benefits to agriculture and other industries.
• Utilizing technology to analyze climate data and reports from various parts of the world, including the use of drones for panoramic measurements of atmospheric carbon.
• Encouraging stakeholders to take a more proactive approach to harnessing solar rays and other renewable resources.
• Directing more focus on physical products and assets in the next decade to achieve a more significant planet-positive impact.
• Quantifying and augmenting the value of natural capital and leveraging AI advancements to understand how to balance our demand with the Earth's natural resources.
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