Climate Insider Brief:
- Investors and academics, including A/O, AlbionVC, Kiko Ventures, Fifth Wall, and Imperial College London, have penned an open letter to UK Prime Minister Rishi Sunak, expressing concerns about the recent policy reversal on the 2030 ban of petrol and diesel cars.
- The signatories argue that the reversal of the 2030 ban and other climate-related policies may hinder the growth of promising companies crucial for building a robust green economy.
- The letter coincides with a challenging period for climate tech investment, as indicated by PwC’s 2023 State of Climate Tech report.
PRESS RELEASE – November 22, 2023 – Sunak’s reversal on the 2030 ban of petrol and diesel cars signalled a lack of commitment to Net Zero goals, say investors.
A group of concerned investors and academics have today (22 Nov) signed an open letter to UK Prime Minister Rishi Sunak urging him to prioritise the county’s climate technology and innovation investment sector.
In September 2023, Sunak reneged on a 2030 deadline for the sale of new petrol and diesel cars as well as the phasing out of gas boilers. The policy U-turn was seen by many as reneging on a commitment made to those developing and investing in technologies designed to address the climate crisis.
Ahead of the COP28, the letter signed by founders and investors from organisations including A/O, AlbionVC, Kiko Ventures, Fifth Wall and Notpla, as well as academics from Imperial College London and UCL, warned of irreparable damage being done to the nascent climate tech industry where the UK has already established global leadership and brought forward promising companies that could be vital to building a strong green economy.
The letter accuses the UK government of “watering down the country’s climate commitments” which risks sacrificing hard-won credibility that has been crucial to instilling business confidence and making the UK an attractive location for green investments.
The letter comes at a challenging time for those investing in climate technology. According to PwC’s 2023 State of Climate Tech report, a combination of geopolitical turmoil, sinking valuations, inflation and rising interest rates has set back private markets of all kinds.
Total venture and private equity investment, for example, was down 50.2% year-over-year, reaching $638bn in 2023. Private market equity and grant funding in climate tech startups, specifically, has not fallen quite as far at 40.5% over the same time frame. But the drop still takes climate tech start-up funding back to the level of five years ago, according to PwC.
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SOURCE: Verdict
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