Climate tech start-ups have raised $32 billion this year

The majority (up to 85%) of emissions come from a barrel of oil when driving transportation, such as your car, according to Carbon Tracker. It’s a stark example of how difficult the net zero goal can be for companies, but it’s far from the only goal.

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Tech companies working to combat climate change have raised a record $32 billion so far this year, according to a report published Tuesday.

The amount of venture capital flowing into climate technology this year has already exceeded all of 2020, a report from venture capital analysis firm Dealroom and promotional agency London & Partners said.

Meanwhile, investment in climate technology has more than quadrupled since 2016, when investors backed startups in the sector with just $6.6 billion.

It comes as some of the world’s top investors are praising the potential of climate-focused startups. Blackrock CEO Larry Fink said Monday that he expects the next $1,000 billion startups to be in climate technology. While Bill Gates said last week that he expects there will be eight or 10 Tesla created in space.

Between 2016 and 2021, climate technology startups in the US raised the most funding, while similar companies in China, Sweden and the UK came next.

Europe is the world’s fastest growing region for climate technology according to the findings, which analyze technology companies working to reduce greenhouse gas emissions or address the effects of climate change.

The report said European venture capital investment in climate technology startups is seven times higher this year than in 2016, rising from $1.1 billion to $8 billion.

Excluding the Bay Area in California, London is home to the largest concentration of climate technology startups, according to the report. It says 416 climate technology startups have been created since the Paris Climate Agreement — a global pact struck at COP21 in 2015 when nearly 200 countries pledged to avoid the worst effects of climate change. Climate technology startups in London are collectively valued at $28 billion, according to the report.

Pressure is mounting on world leaders and CEOs to dramatically reduce greenhouse gas emissions as scientists continue to warn that the Earth is rapidly progressing toward climate catastrophe.

The Dealroom and London & Partners report was released in conjunction with the upcoming 2021 United Nations Climate Change Conference in Glasgow, also known as COP26.

“The technology industry plays a fundamentally important role in helping to drive innovation forward in the fight against climate change,” said Laura Citron, chief executive officer at London & Partners, in a statement.

She added: “Today’s findings demonstrate the creativity of London’s climate technology companies in tackling the climate crisis. Home to Europe’s largest group of climate technology companies and a thriving ecosystem of dedicated venture capital funds and accelerators alongside world-class researchers and talent, the London tech sector unites to tackle the global climate crisis.

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