Climate tech defies economic gloom to pull in VC funding

Climate tech is bucking the downward trend for investment, with observers predicting major growth opportunities. Others warn more government clarity and commitment is needed.

Amid inflation, rising energy prices and interest rates, climate tech is one sector still capable of attracting venture capital. Five climate tech startups drew in a combined $3.7bn in the third quarter of 2022, outstripping investments in other sectors, according to CB Insights, while the VC market overall experienced its biggest quarterly drop in a decade.