HSBC Bets on Climate Tech with US$1 Billion Investmentby Fintech News Singapore September 21, 2023
HSBC has pledged to invest US$1 billion in high-potential early-stage climate tech companies around the world.
The funding will support startups working on a range of new solutions, including EV charging, battery storage, sustainable food and agriculture, and carbon removal technologies.
The bank has already invested US$ 100 million as an anchor partner in Breakthrough Energy Catalyst in January 2022.
The investment comes at a time when venture capital funding for climate startups declined by 40 percent in the first half of 2023.
The IEO report “Net Zero by 2050: a Roadmap for the Global Energy Sector” found that almost half of the emissions reductions required to reach net zero in 2050 will come from technologies that are currently at the demonstration or prototype phase.
HSBC’s investment is part of its broader commitment to achieving net-zero emissions by 2050 at the latest.
Barry O’Byrne, CEO of Global Commercial Banking at HSBC said,
“Access to finance is critical for early-stage climate tech companies to create and scale real-world solutions. We are already working with some of the most exciting companies at the forefront of climate tech, from seed to global scale-up.
With HSBC’s global reach, in-house climate tech expertise, and newly launched Innovation Banking proposition, we can offer these pioneer companies unrivalled support.”