Climate Tech: Market and Investment Overview Q2 2023

More and more companies are ditching fossil fuel use in their vehicles as companies take bolder technological leaps; forging new alliances for the integration of eco-friendly technologies in their designs. The main beneficiaries of innovation money and institutional support are sustainable transportation brands. From the United States to Finland through to Germany and India, sit back as we present you investment updates in the global climate tech market as of Q2 2023 as companies aim to reduce the world’s carbon footprint. 

Most-funded climate tech business models 

EV charging network operations: as the world continues to integrate EV charging networks, investors are brimming with confidence on the back of a middling Q1 in climate tech funding. This quarter, they have put $1.15 billion on the table to reinforce their convictions on the growth of the EV subsegment. 

Electric car manufacturers: the surge of EV charging networks all the more highlights the importance of electric car manufacturers given soaring oil prices. Investors supported the entrepreneurial verve of budding startups with $1.1 billion in funding. 

Carbon-credit trading platforms: carbon-credits are certificates representing volumes of greenhouse gasses that have been eliminated from the air. The platforms where these credits are exchanged are expected to grow and contribute to a $50 billion market by 2030. A $763 million investiture this quarter is making sure this market projection is on track. 

The Most-funded climate tech companies in Q2 2023

VOYAH: this startup drew the highest investor interest with $637 million raised to further the design and development of electric vehicles. The Chinese automaker produces all-electric crossover SUVs. The company is currently valued at $4.2 million.

Octopus Energy: this utility bill management platform attracted $550 million in funding this quarter. The British company, founded in 2015, doubles up as a renewable energy and financial services firm. It manages $12 billion of funds and has invested up to $3.8 billion in renewable energy assets across Europe to date.

Clean Capital: Operating from the UK, Clean Capital promotes clean energy with an online marketplace for investors and capital access for project development. The online platform for funding solar projects secured $500 million in funding to promote the development of a green energy future. 

Deals related to climate change in different industries in Q2 2023 

The mitigation of the incidence and impact of climate change is a multisectorial effort involving the automotive construction, oil and gas and utulities industries. In this snapshot, we will pick each industry apart to know the financing, mergers and acquistions, partnerships and other types of climate-change mitigation deals taking place.

The oil and gas industry earned the highest amount of climate-change change related deals in Q2 2023 with 226 deals. 

Top climate tech themes trending on social media 

The vast world of social media is awakening to interesting developments in climate tech. We have “biofuel,” “hydrogen fuel,” “hydrogen economy,” “hydroponics,” “grid energy storage,” “smart highway,” “vertical farming,” among others.

Innovations in climate tech across various industries 

We have also compiled some use scenarios across the globe that might gain steam in Q2 2023.

Germany: the post-pandemic world has seen a resurgence in luxury travel after weaning off oil dependency and embracing cleaner alternatives. ALVA Yachts, Germany’s luxury solar sailboats and catamaran maker is exploring hydrogen-powered fuel technology in its vessels. The company is making eco-travel happen in partnership with EODev.

United States: a patent has been issued to AML for a new way of fabricating permanent magnets from rare earth rocks using the powder-in-tube method. This method promises high performance magnets called PM-Wire, that covers several end-use applications such as motors.

India: BluSmart Mobility has covered 200 million plus clean-kilometers among other records. The Indian company, founded in 2019, made this announcement on World Environment Day, cementing its position as the pacesetter in India’s urban decarbonization mission.

Do you want to see more sector-wide stories and initiatives emanating from the global climate tech scene? Stay tuned for updates as we frequently treat our followers to the best investment opportunities quarter after quarter.