The International Energy Agency estimates that 35 percent of emissions reductions required globally by 2050 will have to come from new technologies1. Innovative climate technologies will be needed to support the transition to renewable energy sources – especially in high emitting sectors, such as aviation and manufacturing. We believe that many of these climate tech companies, once scaled, will conceivably change the way the world operates, from how we build our homes, to our means of travel and food production.  

However, global progress in scaling these technologies is disparate as access to capital remains the largest barrier to wide-spread adoption. Funding needs to increase by at least 590 percent to $4.35 trillion annually by 2030 to meet climate targets2. Whilst there are existing programmes helping to accelerate investment into climate tech – like the US Inflation Reduction Act – we need to see further activity on a global scale. 

Barclays’ support for climate tech financing 

At Barclays, we have a target to facilitate $1 trillion of Sustainable and Transition financing by 2030, encompassing the long-term Green, Social, Transition and broader Sustainable financing requirements of our customers and clients. We are focused on supporting climate tech companies at every step in their lifecycle, as they scale from ideation through to IPO. 

As part of our Sustainable Impact Capital mandate, we aim to bridge growth stage funding gaps by investing £500 million of our own equity capital into climate tech companies, helping to scale their technologies. Since the launch in 2020, we have deployed over £100 million into more than 20 climate tech companies. These include ZeroAvia, a hydrogen aviation company that aims to power aircraft with zero-emission engines, and Agricarbon, an agri-tech company specialising in scalable, high-accuracy soil carbon measurement. 

As climate technologies scale, they will need to harness the power of capital markets to obtain larger volumes of finance. At Barclays, we have a dedicated team, Energy Transition Group, which provides holistic and cohesive strategic advice and financing solutions through the energy value chain, with a particular emphasis on decarbonisation.  

In April 2023, Ohmium International, a leading green hydrogen company that designs, manufactures and deploys advanced proton exchange membrane electrolyzer systems using renewable energy to produce pressurized high-purity green hydrogen, partnered with teams across Barclays’ Corporate and Investment Bank to help successfully close a $250 million Series C growth equity financing round. Barclays served as Placement Agent to Ohmium on the capital raise. The funding will be used to support Ohmium’s expansion to 2GW in annual manufacturing capacity and the deployment of projects for the company’s growing global customer pipeline in key regions. The investment will also provide significant capital to scale Ohmium’s business, including accelerating its pioneering research and development programs to reduce the cost of green hydrogen production. At that time, this transaction was the 5th hydrogen deal in 13 months for Barclays’ Sustainable & Impact Banking Group, now known as the Energy Transition Group, highlighting our deep sector knowledge across the entire hydrogen technology value chain and ecosystem. 

At Barclays, we continue to explore opportunities for collaboration to unlock more capital for climate tech companies. We are clear that to build a better tomorrow, action to scale these climate technology companies needs to take place today.