Barclays Climate Ventures has financed over 500 million British pounds in climate technology investments since the year 2020.
Barclays Climate Ventures (BCV), a division of the global financial services company, Barclays, is playing a pivotal role in addressing the financing gap for climate tech companies by investing substantial capital directly into these firms, particularly at their growth stages. With a mandate to deploy up to £500 million of Barclays' own capital to support climate tech businesses, BCV is effectively filling the 'missing middle' financing gap where such companies often struggle to secure sufficient investment from traditional sources[1].
Since 2020, BCV has led or co-led over half of these transactions, enabling a further £305m of third-party investment. This strategic infusion of capital addresses a critical barrier in the climate tech ecosystem, helping new technologies mature and scale to meet urgent climate challenges[1][2].
One such example is BCV's investment in Terra CO2's Series B funding round, providing critical equity capital that enables the company to expand its commercial facilities in North America and Europe for sustainable cement materials. Such investments demonstrate BCV's strategy to back technologies that are commercially viable and cost-competitive, not solely reliant on subsidies or government funding[2].
By offering significant growth capital, Barclays Climate Ventures not only supports the scaling of innovative climate technologies but also sends a market signal that encourages further private sector participation. This helps to unlock the large potential of climate tech to contribute to net zero goals by overcoming funding deficits during a crucial phase of company development.
The UK, home to a thriving climate tech ecosystem, is no exception. BCV's investments have resulted in the creation of 664 jobs in the UK alone, contributing to the country's economic growth, energy security, and emissions reductions at scale[1].
Steven Poulter, Head of Barclays Climate Ventures, emphasises the need to address the financing gap in the climate tech sector to unlock its economic potential. He states, "Climate tech is crucial for delivering the next-generation energy system."
BCV's approach includes adjusting risk appetite to invest in climate tech, and the report quantifies the broader impact of BCV's investments beyond just the investment figures. The report reveals that BCV has enabled £508m of investment since 2020, catalysing investment into climate tech[1].
Barclays Climate Ventures encourages more investors to join them on the journey of investing in climate tech, recognising that collaboration is key to addressing the climate challenge while supporting a successful and growing economy with affordable and resilient energy.
Sources: [1] Barclays Climate Ventures. (2023). Barclays Climate Ventures' Impact Report 2020-2022. Retrieved from https://www.barclays.com/content/dam/barclays/global-news/pdf/reports/barclays-climate-ventures-impact-report-2020-2022.pdf [2] Barclays Climate Ventures. (2022). Barclays Climate Ventures invests in Terra CO2 to accelerate sustainable cement solutions. Retrieved from https://www.barclays.com/content/dam/barclays/global-news/pdf/releases/barclays-climate-ventures-invests-in-terra-co2-to-accelerate-sustainable-cement-solutions.pdf
- Barclays Climate Ventures (BCV) has invested in Terra CO2, a company focusing on sustainable cement materials, demonstrating their strategy to back environmentally friendly technologies that are commercially viable and cost-competitive, as reported at ffnews.com [2].
- Not limited to direct financing, BCV's investments have catalyzed a total of £508m into environmental-science and climate-change related industries since 2020, playing a crucial role in the overall investments in the climate tech sector [1].
- By partnering with climate tech companies like Terra CO2, the finance industry, as exemplified by Barclays Climate Ventures, can contribute to the environmental-science industry and the urgent need for climate-change solutions, while simultaneously supporting the growth of the industry and the economy [2].
