‘Surge’ in climate tech investment as UK bucks global decline trend
Artificial intelligence accounted for one-quarter of all green technology investment in 2024.
PwC’s Global State of Climate Tech 2024 report shows that £4.5billion poured into climate tech in the UK over the past year. An increase of 24% year-on-year, machine learning and AI are identified as big growth drivers, with investment increasing by 128% and British firms now accounting for 22% of all AI-related climate tech startup investment.
The figures contrast the global trend, with a 30% decline in international climate tech funding overall. The analysis, now in its fifth year is based on private equity and venture capital investment across 12,000 startups and 52,000 individual deals totalling £475billion. From this, £2.4billion was channeled from UK investors to domestic climate tech, another positive that shows improving confidence in the country’s capabilities.
Alongside AI, climate adaptation and resilience technologies and energy solutions were also earmarked as major growth areas. The report also noted that high emission sectors were raising ‘relatively little’ funding for climate tech financing: industry (34% of emissions; 8% of funding), food, agriculture and land use (22%; 8%), and the built environment (16%; 4%).
‘As climate change continues to impact communities with wildfires, floods and other extreme weather events, private investors are showing interest in adaptation and resilience technologies,’ said Dan Dowling, Sustainability Partner at PwC UK. ‘While this trend is promising, more investment is also needed in high-emissions sectors like industry, agriculture, and the built environment. As the economy recovers, early-stage investors in transformative industries will find opportunities and play a crucial role in achieving net zero. However, this journey requires the shared responsibility of private investors, corporates, and public actors.’
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Image: Chris Ried via Unsplash