The UK is emerging as a global leader in climate tech investment. Recent research has been published showing that despite a global decline in funding, the UK is bucking this trend and increased investment by 24% to £4.5 billion in 2024.
The ‘Global State of Climate Tech’ report monitors venture capital and private equity investment, and focused on over 12,000 startups and approximately 52,000 deals valued at over £475 billion. It also considered government bodies and angel investors, while excluding asset purchases, debt funding or IPO (initial public offering) exit deals.
Internationally, global climate tech investment has slowed, with overall investment in climate tech falling to £44 billion in 2024. However, there are still grounds for optimism, as evidenced by the growth in investments in AI (artificial intelligence)-powered climate solutions. Climate adaptation and resilience technologies are also stirring investor interest in technologies designed to improve resistance to climate change threats, such as flooding or extreme weather.
It found that UK investors pumped £2.4 billion into domestic climate tech businesses, which amounted to a 7% increase in investment volume. Much of this is related to the incorporation of AI in climate solutions. There has been a 128% boom in investment in AI climate tech companies based in the UK, soaring from £440 million in 2023 to £1.01 billion in 2024.
Worldwide, UK-based firms represent 22% of global investment in this sector, highlighting Britain’s formidable reputation in climate tech.
If you are investment planning in Cheshire, the most attractive elements of AI climate tech include self-driving vehicles, smart homes, green energy, the agricultural sector, information technology and financial services. It’s always a good idea to check with a financial adviser before investing in any industry.
