MIT’s 2016 report declared that venture capital funding had failed to generate returns for cleantech companies, leading to a decrease in funding and enthusiasm for the industry. However, climate tech has seen a resurgence since 2020, with $100B in funding deployed across 130+ new climate funds. A dataset analyzing 289 climate tech exits from January 2020 to February 2023 showed that exit activity had increased 70% YoY, with transport and energy companies leading the exit count at 186. The median time from founding to exit was approximately 9 years. The most acquisitive companies were large energy firms and private equity firms, with Shell buying the most climate tech companies since January 2021. RNG, biogas made from waste materials, was a particular area of focus. While M&A transactions made up the majority of exits, only 6% of the total were IPOs. Climate tech startups raised less money over the last six months, which may lead to discounted deals for fossil fuel acquirers. However, early acquisitions could hinder the healthy growth and maturation of the market.
It is important that carbon credit schemes also benefit local communities.
The World Meteorological Organisation has stated that 193 countries have given unanimous backing to a scheme to monitor global greenhouse...