HSBC has on Wednesday announced that it plans to make available $1 billion of financing to early-stage climate tech companies around the world.

HSBC said in a statement that the financing is expected to support start-ups to create a range of new solutions, including electric vehicle (EV) charging, battery storage, sustainable food and agriculture, and carbon removal technologies.

While the majority of global early and growth stage climate tech investment has focused on the United States and Europe, HSBC said its $1 billion allocation plans to focus on high potential climate tech companies, wherever they are in the world.

According to the statement, estimates suggest almost half the emissions reductions required to reach net zero in 2050 will come from technologies that are currently at the demonstration or prototype phase.

This announcement also follows the launch of HSBC Innovation Banking and of HSBC Asset Management’s Climate Tech Venture Capital strategy.

“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,” said Barry O’Byrne, Chief Executive Officer of Global Commercial Banking at HSBC.

According to the statement, HSBC is seeking to deepen its support for the ecosystem of climate tech innovation.

This comes as recent data shows that after successive rapid year-on-year growth, venture capital funding for climate start-ups plunged by 40 percent in the first half of 2023, as market conditions in the venture capital space put downward pressure on nascent tech valuations.

HSBC’s climate tech proposition aims to enable these critical technologies to reach the market more quickly at scale.

HSBC also aims to support climate tech innovation to scale, supporting early-stage companies and providing capital for first-of-a-kind demonstration projects, including through its $100 million investment in Breakthrough Energy Catalyst.

HSBC Holdings plc, the parent company of HSBC, is headquartered in London.

The bank serves customers worldwide from offices in 62 countries and territories.

With assets of $3.04 billion at 30 June 2023, HSBC is one of the world’s largest banking and financial services organizations.

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