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Message: [QUOTE="Mike Butcher, post: 4402"] Investment from VC and PE into climate tech is booming, reaching $87.5bn over H2 2020 and H1 2021, with in excess of $60bn in the first half of 2021 alone, according to [URL='https://www.pwc.com/climatetech']a new report from PWC[/URL]. This is a 210% increase from the $28.4bn invested in the 12 months prior. Some 14¢ of every dollar of VC now going to climate tech. However, not all is rosy. The investment is mostly focused on technology solutions accounting for 20% of emissions reduction potential. So PWC says there is an opportunity to shift the focus to areas and technologies with a more direct impact on emissions. And despite this overall growth, the number of early VC, seed, and Series A investments in climate tech has remained largely stagnant since 2018. Of 15 solutions analyzed, the top five, representing more than 80% of emissions reduction potential by 2050, received just 25% of the climate tech investment between 2013 and H1 2021. In other words, VC needs to put more into directly affecting emission, not just SaaS platforms etc which track them. Emma Cox, Global Climate Leader, PwC UK, said: “The world has 10 years to halve global greenhouse emissions if we are to have hope of achieving net-zero by 2050… However, our research has found there is potential to better channel and incentivize investment in technology areas that have the greatest future emissions reduction potential. This raises the question of why these sectors are missing out – are investors missing a valuable opportunity or is there an incentive problem that needs the attention of policymakers?” Climate tech encompasses technologies focused on reducing greenhouse gas (GHG) emissions. Climate tech investment plateaued in 2018-2020, but has rebounded in the first half of 2021 driven by a refreshed focus on ESG in private markets, emerging regulations and standards, and more companies committing to net-zero strategies. Here are some extracts from PWC’s report: PWC said the United States leads in climate tech investing, attracting nearly 65% of VC investment, $56.6bn from H2 2020 to H1 2021. China is estimated to have seen $9bn in climate tech investment in the same period, while Europe totaled $18.3bn, driven by a nearly 500% (494%) increase in Mobility and Transport in H2 2020 and H1 2021, compared to the prior 12 month period. [/QUOTE]

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