How can we overcome financial hurdles in climate tech?
As climate change continues to accelerate, we need to rethink how we finance critical clean technologies. Industries like batteries, hydrogen, renewables, and more are essential for the energy transition, yet they often struggle to secure necessary funding.
These sectors, which require significant capital investments, face a unique challenge in capital markets traditionally geared towards asset-light companies.
The journey from initial concept to commercial viability is particularly tough in today’s economy, which favors digital over hardware advancements. This “valley of death” is where many promising green tech firms fail due to insufficient financial support.
About $270 billion was raised for the energy transition between 2017 and 2022. A significant portion was venture capital, yet there’s still a gap in growth-focused funds.
To achieve a decarbonized economy by mid-century, we have to channel capital into riskier and emerging technologies at the scaling stage.
