Climate change poses significant threats including rising global temperatures, extreme weather events and ecosystem disruptions, primarily driven by CO2 emissions from fossil fuels.

Notably, 2024 had been the warmest year on record, with global temperatures exceeding 1.5°C above pre-industrial levels, a threshold established by the Paris Agreement.

Climate technology encompasses a broad range of innovations that aim to mitigate these adverse effects. Key areas include renewable energy, carbon capture and storage, sustainable agriculture, recycling, energy efficiency and mobility. Climate technology start-ups are key to helping the future of the planet, since they are often at the forefront of technological innovation and tackle the other half of emissions which mature technologies like solar panels have not been able to mitigate.

The climate tech sector was valued at $20.43 billion in 2023 and is projected to reach $149.27 billion by 2032, representing a compound annual growth rate of 24.8%. In 2024, the global climate technology industry experienced a 30% decline in investment due to macroeconomic headwinds such as higher borrowing costs and uncertainty. Yet, investment into UK-based climate technology companies surged to 24%, totalling £4.5 billion, according to PWC’s latest Global State of Climate Tech report. This exemplifies the UK’s robust environment for climate-focussed innovation, even amidst challenging macroeconomic conditions.