While ClimateTech investments have grown, further efforts are required to create a globally competitive industry. Policy recommendations include streamlining funding, creating a common EU platform for funding access, supporting long-term financing through blended financing, and mandating procurement of climate tech solutions.

“French public and private investors are well positioned to fund EV infrastructure. However, standardization at the European level is crucial, for example in the case of CO2 emission certificates,” said Vincent Gaillard, Deputy CEO of Electra, a European ClimateTech startup featured in the report as a case study.

Other recommendations involve attracting institutional capital, improving capital market conditions, increasing collaboration between the private sector and research institutions, and reducing bureaucratic hurdles.

“If companies want to do an IPO, they will do one. Unfavorable market conditions in Europe will lead to IPOs abroad,” said Arthur Singer, Co-Founder of STABL, a European ClimateTech startup featured in the report as a case study.

Europe has a tremendous opportunity to lead in the ClimateTech industry. However, urgent and concerted efforts are needed from policymakers, investors, and scientific institutions. The time to act is now.

Download the report here.