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Climate technology is hugely important for all of us because it touches all our lives, helping to mitigate the impacts of climate change through reducing greenhouse gas emissions and developing more climate change solutions. Climate technologies, such as renewable energy sources like wind, solar, and hydropower, can provide cleaner sources of energy and reduce our reliance on fossil fuels. Related technologies such as energy-efficient buildings, electric vehicles, and carbon capture and storage (CCS) can also play an important role in reducing emissions.

It’s also big business. According to Future Market Insights, the global climate tech market was valued at $13.8 billion in 2021. It is expected to reach $147.5 billion by 2032, growing at a CAGR of 24.2% from 2022-2032.

Climate tech is a multi-stakeholder sector that requires both local and global awareness. The market opportunities surrounding environmentalism and esg investing are also closely tied to government regulations. Three important climate tech trends for 2023, and how startups are advancing those trends for the good of the planet, were laid out in a recent article in Forbes.

• Direct Air Capture is a technology that aims to remove carbon dioxide directly from the air.
• Green hydrogen is hydrogen produced from renewable energy sources such as wind, solar or hydropower.
• ESG provides a framework for measuring the sustainability and societal impact of a company or investment.

In other news, the EU's Internal Market Commission in Brussels has set a target for at least 40% of the bloc’s climate tech — including solar panels, windmills, green hydrogen, heat pumps, batteries and the new generation of nuclear technology — to be manufactured in Europe by 2030, reported Sifted. Undoubtedly this creates tech startup opportunities.

Euromoney reminded us solar thermal technology could offer manufacturers cheap carbon-free heat. However, tech developers are finding themselves stuck in a financing gap between venture capital and project finance that will be harder to fill after the recent bank failures and market jitters.  

CrowdInvest is taking its own look at the climate tech sector in a Demo Day online event on 4th April, where we'll be showcasing the latest startups and innovative ideas focused on ESG investing, sustainability and climate tech. This is a unique opportunity to learn about new ideas and investment opportunities in this space, and to connect with other like-minded investors and business leaders. 

Our event will feature a cohort of four startups that are working on ground-breaking solutions to tackle some of the world’s most pressing issues such as tackling the greenhouse effect and other climate action. Each startup will have a chance to pitch, followed by a Q&A session with investors. The startups are:

• Mavuno Technologies. Based in Berlin with an aim to revolutionise farming in Africa.
• Bytes Food. Growing produce right next to cities in vertical farms that use 95% less water.
• GreenNWhite. London-based maker of eco-friendly cleaning products for ourselves and our homes.
• Sustainable Farming Solutions (SFS). Empowering farmers in Malawi to restore and conserve their ecosystems.

In addition to the startup pitches, we'll also have a panel discussion from some of the leading names in the industry, who will be sharing their insights on the latest trends in ESG investing and sustainability. You can reserve your place now. 

In other crowdfunding and associated tech news………….

Crowdfunding

UK climate tech startup ClimaFi is running an equity crowdfunding campaign that opened to the general public on March 22. Its three key aims are to raise a minimum £200,000 to develop its platform that issues and trades high-integrity UK carbon credits; help to restore global peatlands; and build a community of like-minded loyal supporters.

California-based Wind Harvest International makes the only wind turbine designed for highly energetic mid-level winds blowing at heights of 15 to 80 feet above ground. AltEnergyMag said it is offering equity through crowdfunding to complete tests and accelerate its commercialisation process. It believes its turbines could be eventually used to deliver clean energy in over 60 countries. This campaign also reminds me that crowdfunding is not only for startups, Wind Harvest was founded in 1975.

German startup Sono Motors had plans to manufacture road vehicles with embedded solar panels. With the car industry still reeling from Covid supplier shortages and delays, added burdens of double-digit inflation, interest rate rises and escalating energy prices created further challenges that proved insurmountable. A last-ditch effort to generate additional pre-orders for cars that don’t yet exist, through a reward-based crowdfunding campaign, proved to be too optimistic. The company has since pivoted to sell its solar technology to other manufacturers, reported Tech.eu.

Riversimple is a UK startup developing zero emission hydrogen-powered electric cars. It is a business financed by rounds of crowdfunding since it launched in 2015. 41% of households in England live in flats or terraced houses, where home charging is not an option. Based in Wales, Riversimple’s lightweight cars have been trialled in Pembrokeshire where they were used by the Council and for testing NHS duty cycles. Founder Hugo Spowers was awarded an MBE for Services to Technology in June 2022. Riversimple’s fifth round of equity crowdfunding closed atis currently overfunding at 111% of the £750,006 target. One anonymous investor has pledged £12 under £300k.

Cross-border investments

Twenty one platforms are now licensed to operate under the European Crowdfunding Service Providers Regulation, ECSPR. The EU-wide rules allow the twenty one P2P and crowdfunding platforms to operate in all 27 member states and to carry out cross-border transactions, reported P2P Finance News. Geographically, the Netherlands has the most, with seven platforms approved under ECSPR. Spain has five platforms, France has four.

Blockchain and Crypto

The Fintech Times reported National Australia Bank has made history as the first major financial institution to complete an intra-bank cross-border transaction on a public blockchain using its own NAB-issued stablecoin.

Fintech

At just 9 months since founding, Metcycle, the Cologne-based trading platform for scrap and recycled metals, has raised €1.5 million. It claims recycled or scrap metals can serve the same purpose as their primary counterparts, without a decline in quality, though with a CO2 footprint reduction of 60-95% that helps reduce global warming. Tech.eu further explained that the company's financial service provider facilitates each payment and holds the funds secure in an individual escrow account until the goods have been delivered.

Crowdfund Insider reported that new findings from Juniper Research show fintech Innovations like open banking, CBDCs, stablecoins and instant payments are transforming the Financial Services sector. Payments are in “a constant state of development, but the current market has seen the possibilities for payment types accelerate beyond what many in the market expected,” according to Juniper Research.

The neobank Science Card offers a dynamic way for customers to boost scientific research funding with its ‘one-click’ research crowdfunding model. Scientist and deep tech entrepreneur Daniel Baeriswyl launched Science Card to use the banking ecosystem to drive sustainability, combat climate change, improve healthcare and access to education, and boost scientific projects that will improve society. Science Card customers will be eligible for a Mastercard-branded bank card, reported Finextra. Each use of the card will generate micro-payments to a range of scientific projects, and each customer can choose which projects to support. Science Card’s initial launch is in the UK, with an estimated 30,000 customers, and it aims to fund at least one scientific R&D project with a minimum of £300,000 in the first year.

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