Why is Climate Technology important?

a guy sitting outside holding a laptop in his lap

Climate tech companies are reshaping the world’s largest markets with innovative sustainable solutions.

Over the past couple of years, entrepreneurial activity and investment interest in climate technology have skyrocketed.

Climate tech has become the fastest-growing vertical in Europe, with funding soaring tenfold from $1.1bn (£840m) in 2017 to $11bn (£8.4bn) in 2021

Climate Technology

Climate Technologies or Climate Tech are technologies that we use to address climate change by reducing GHGs including renewable energies such as wind energy, solar power, and hydropower. Climate tech brings together innovative approaches and solutions to ease the adverse effects of climate change. 

The Growth of Climate Tech & Climate Intelligence in Europe

In 2020, Blackrock, the world’s largest investment firm, highlighted that it expects the companies it invests in to develop detailed plans to reduce its carbon footprints.

BlackRock CEO Larry Fink, competently captured the current ebullience when he declared that “the next 1,000 unicorns” will be in climate tech.

With nearly $10 trillion under management, BlackRock’s words motivate real action in corporate boardrooms. 

The emergence of climate innovative businesses across Europe has become prevalent. These innovations are offering substantial business opportunities while contributing to our economies at large. Generally, these trends are shaping Europe to be a global leader in Climate Tech.

Last year, Europe became the fastest growing region in climate tech start-ups as investments skyrocketed by €27,5 billion ($32 billion) since the Paris Climate Agreement.

In the UK, several funds have recently issued to invest in climate technology startups, suggesting the direction is set to continue. 

Governments, tech firms and investors are showing a growing interest in machine-based learning systems that use algorithms to identify patterns in data sets and make predictions, recommendations or decisions in real or virtual settings. These machine-based learning systems are called Artificial Intelligence.

In the context of climate change, AI can facilitate climate change mitigation and adaptation strategies within a variety of sectors, such as energy, manufacturing, agriculture, forestry, and disaster management.

 

Photo from Buro Millenial on Prexels
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