Barclays is increasing its investment in climate tech startups, made through its Sustainable Impact Capital portfolio, from £175m by 2025 to £500m by the end of 2027.
The bank has also announced plans to provide $1tn in sustainable financing before the end of 2030.
“The final COP27 text stated that $4tn-6tn a year needs to be invested in renewables and decarbonisation solutions until 2030 – including investments in technology and infrastructure – to allow us to reach net-zero emissions by 2050,” said Daniel Hanna, global head of sustainable finance, corporate and investment bank, Barclays.
Barclays has already invested £84m into climate tech startups including hydrogen and energy storage. Going forward, Barclays says it will have a greater focus on “carbon-intensive sectors”.
Despite its increased spending on climate tech startups, Barclays financed £4.1bn for new fossil fuel projects from January 2021 to the eve of COP26, according to a report by climate finance campaigners Market Forces.
C.S. Venkatakrishnan, chief executive of Barclays Group, said: “From facilitating financing for high-emitting sectors to adapt, to our own equity investments in climate-tech start-ups, to our support for customers and small businesses, Barclays’ diverse ecosystem has the capability and expertise to accelerate the transition across all aspects of the economies that we serve.”
Barclays isn’t the only high street bank venturing into tech startup investment, with HSBC recently launching a £250m fund aimed at tech scaleups.
Barclays has become increasingly active in the British startup ecosystem through its accelerator Eagle Labs, which is reportedly set to receive £12m in government funding, with Tech Nation set to lose out.