Climate Tech Report

Climate tech gears up to tackle global energy emergencies

VC investment in climate tech was strong in Q1, but could fall in Q2 due to volatility and lower market valuations. However, in the long term, the attack on Ukraine and resulting calls for energy independence in Europe are likely to accelerate climate tech investment—namely in hydrogen, solar, batteries, nuclear, and wind.

In a shift from the ill-fated cleantech investment craze of 2006 to 2011, climate tech startups are now targeting a broad range of industries as they seek to decarbonize the economy, including the energy sector, transportation, building, food systems, and industrial processes.

Our Q1 Emerging Tech Research update on climate tech dives deep into the vertical’s investment activity and trends, including a look at the global lithium market and emerging technologies that seek to reduce the carbon footprint of lithium mining.

Key takeaways

• Global climate tech companies raised more than $9 billion across 273 deals, representing less investment than the average quarterly total in 2021.
   
• PitchBook analysts anticipate greater interest in hydrogen as Germany searches for alternatives to Russian gas.