HSBC announced today that it plans to make available $1bn of financing to support early-stage climate tech companies around the world.
The new commitment comes as funding for climate startups is tightening, with the bank noting that venture capital funding for climate start-ups plunged by 40 per cent in the first half of 2023, as market conditions are pressuring tech valuations.
The financing is expected to support start-ups creating a range of climate solutions in arenas that include EV charging, battery storage, sustainable food and agriculture and carbon removal technologies. HSBC’s climate tech proposition aims to enable these critical technologies to reach the market more quickly at scale.
In a statement announcing its new $1 billion pledge, HSBC said that the move forms part of it’s ambition to deepen its support for the climate tech innovation ecosystem. The announcement also follows the launch of HSBC Innovation Banking and of HSBC Asset Management’s Climate Tech Venture Capital strategy.
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.”
While the majority of global early and growth stage climate tech investment has focused on the USA and Europe, HSBC noted that its $1 billion allocation will focus on high potential climate tech companies wherever they are in the world.