The financing, which follows the launch of HSBC Innovation Banking and Climate Tech Venture Capital strategy, will support start-ups developing new solutions, including EV charging, battery storage, sustainable food and agriculture, and carbon removal technologies
UK-based banking and financial services company HSBC has unveiled its plans to provide $1bn financing to support early-stage climate-tech companies worldwide.
The financing will support start-ups to develop a range of new solutions, including EV charging, battery storage, sustainable food and agriculture, and carbon removal technologies.
HSBC would also invest $100m in Breakthrough Energy Catalyst, a platform that supports companies using emerging technologies to switch to cleaner energy sources.
The announcement follows the launch of HSBC Innovation Banking, a new unit focusing on banking services to start-ups, investors, and the tech community.
Also, HSBC Asset Management recently launched its Climate Tech Venture Capital strategy, which supports early-stage companies working to achieve net-zero transition.
HSBC global commercial banking CEO Barry O’Byrne 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 scale-up.
“With HSBC’s global reach, in-house climate tech expertise, and newly launched Innovation Banking proposition, we can offer these pioneer companies unrivalled support.”
According to recent data, venture capital funding for climate start-ups increased by 40% in the first half of 2023, after successive rapid growth year-on-year.
The technologies that are currently in the development phase will contribute to nearly half of the emission reduction required to reach net zero in 2050.
HSBC said that it aims to deepen its support for climate tech innovation, and its climate tech proposition will help key technologies reach the market rapidly at scale.
While most of the climate tech investment is focused on the US and Europe, its $1bn financing will focus on high-potential climate tech companies across the world, said the UK-based lender.
Recently, HSBC introduced a new document-free trade finance solution, dubbed TradePay, to help clients instantly draw down trade loans and pay suppliers.