HSBC’s recently announced plans to make available $1bn of financing to early-stage climate tech companies around the world should resonate with innovators across the Isle of Man, Jersey and Guernsey, according to the Head of Commercial Banking in the islands.
The financing is expected to support start-ups to create a range of new solutions, including EV charging, battery storage, sustainable food and agriculture, and carbon removal technologies.
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% in the first half of 2023. HSBC’s climate tech proposition aims to enable these critical technologies to reach the market more quickly at scale.
While the majority of global early and growth stage climate tech investment has focused on the USA and Europe, HSBC’s $1bn allocation plans to focus on high potential climate tech companies, wherever they are in the world. 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.
Pointing to the focus the islands have on both digital innovation and sustainability, Aline Ayotte, HSBC Head of Commerical Banking in the Channel Islands and Isle of Man, believes the financing should be of interest to innovators in those fields. She said:
“We’re very excited to announce this new global funding, which we feel could be a significant opportunity for companies and entrepreneurs across all three islands who are active in the climate technology space. Jersey, Guernsey and the Isle of Man all have climate targets and ambitious, exciting, and fast growing tech and digital sectors. This injection of funding could allow local innovators to grow quickly and reach another level of scale.”
Barry O’Byrne, CEO of Global Commercial Banking at HSBC said: “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 scaleup. With HSBC’s global reach, in-house climate tech expertise, and newly launched Innovation Banking proposition, we can offer these pioneer companies unrivalled support.”