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Infographic – Climate Investments Skyrocket in 2021

Chart: Climate venture investments

Click on image for full-size view (CB Insights)

5 Feb. 2022. While governments inched forward in November on a global climate agreement, private investors are not waiting to make substantial commitments to battle the climate crisis. Technology research company CB Insights shows in its recent Tech Trends for 2022 report (registration required) that venture investments in 2021 more than quadrupled from 2020 to nearly $9.3 billion, in companies developing technologies addressing the climate crisis.

CB Insights defines climate technology investments as funding for companies working in energy storage, hydrogen, carbon capture, vertical farming, electric vehicles, smart buildings, and alternative food protein sources to conventional farming. In 2020, those companies raised $2.25 billion, a decline from a little more than $3 billion raised in 2019. In 2021, however, climate technology investments zoomed to $9.28 billion.

In addition, says CB Insights, venture funds dedicated to climate technologies reported attracting plenty of investors. Lowercarbon Capital in New York, according to Crunchbase, raised $800 million for its first fund in Aug. 2021. And, says CB Insights, two European venture investors, World Fund and 2150, raised $400 million and $300 million respectively last year. But CB Insights also notes that climate technologies face a particular challenge in demonstrating economic payoffs for their products, and often need intensive capital infusions that delay returns to investors.

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