Carbon & Emissions Tech Report

Carbon & emissions tech on pace to match its 2021 peak

The carbon & emissions tech vertical experienced a strong Q3 2022—its third-strongest on record—raising a total of $4.8 billion. Total deal value has increased each quarter over the past 12 months, and carbon & emissions tech VC activity is on pace to match 2021 figures.

Our Q3 2022 Carbon & Emissions Tech Report highlights which firms have been the most active, the technologies they’re most interested in, and how startups have boosted efforts to develop more advanced and energy-efficient approaches to carbon removal.

Key takeaways

• The US Inflation Reduction Act—which committed around $370 billion in grants, tax cuts, and loans to tackle climate change—hasn’t yet made its expected impact on VC investing.
   
• In the carbon tech sector, Q3 2022 recorded the third-highest deal value ($900.3 million across 67 deals) over the past 24 months.
   
• Median pre-money valuations of early-stage VC companies in the vertical jumped from $9.9 million in 2017 to $35.0 million in 2022, an increase of 254%.