Reaching net zero will require rapidly scaling existing solutions, while helping to seed the nascent technologies that will be vital to the transition. According to the International Energy Agency, 35% of the emissions reductions needed by 2050 will come from technologies not yet at commercial scale¹.

The growing adoption of first-generation climate tech, from solar, wind and batteries to EVs, shows what is possible. The next generation of climate tech will be critical to help decarbonise energy, mobility, industry, food and land use, and the built environment. Early-stage financing will play a vital role in supporting pioneers to demonstrate technology feasibility, to scale and accelerate commercial adoption, and to grow internationally.

Catalysing these innovations, and the new and evolving sectors and ecosystems they depend on, won’t be a linear process. It will require both expertise and agility to adapt and seize opportunities as they emerge. HSBC Innovation Banking has sponsored a report by Sightline Climate that explores the latest data and trends from 2024 on the different types of capital available in the climate tech landscape.

The report, titled The Climate Capital Stack and New Funds, has found a 20% year-on-year increase in amount of capital for climate tech investment despite a challenging backdrop of rising interest rates and increased scrutiny on valuations. And the findings suggest an industry showing signs of maturity, with a diverse and more complex capital stack for stakeholders to navigate and leverage.