India among top 10 countries globally for climate tech investment; Europe fastest growing region: Report

Venture capital (VC) investment into climate technology companies has gone up globally since 2016, as per a report jointly prepared by the international trade promotion agency London and Partners and the Amsterdam-based database management company Dealroom.co.

According to this latest report, India ranks at the ninth spot in the list of 10 countries for climate tech investment. Indian climate tech firms have received $1 billion in VC funding from 2016-2021.

Top 10 countries for climate tech VC investment are — US ($48 billion); China ($18.6 billion); Sweden ($5.8 billion); UK ($4.3 billion); France ($3.7 billion); Germany ($2.7 billion); Canada ($1.4 billion); Netherlands ($1.3 billion); India ($1 billion); and Singapore ($700 million). This report analyses technology companies working to reduce green house gas emissions or addressing the impacts of climate change.

Global climate tech VC investment increased by almost 5 times from $6.6 billion in 2016 to $32.3 billion in 2021. The report further underlines that the global climate tech investment levels in 2021 have exceeded the whole of 2020, demonstrating the importance of global tech industry in combating climate change.

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The report further states that Europe is the fastest growing region for climate tech globally, with European VC investment into climate tech firms seven times higher this year than in 2016 (up from $1.1 billion to $8 billion). London is one of the world’s most advanced ecosystems in Europe with its start-ups raising $3.3 billion since 2016, accounting for 16 per cent of Europe’s total. Besides, London is also home to 416 climate tech companies, the biggest cluster across Europe.

“Countries around the world need to work together so that we can collectively change business practices and commit to net zero emissions. The global tech industry plays a pivotal role in accelerating this global transformation and this is demonstrated in the rapid growth of VC investment into global climate tech investments. It is fantastic to see the UK and India among the top 10 countries for climate tech investment globally, with London leading the way in Europe for the number of climate tech companies and dedicated VC funds,” said Hemin Bharucha, London and Partners Country Director.

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