Green Finance Briefing: Sustainable investments reached new records in 2021
- Investor appetite for sustainable investments is on the rise, with new records reached last year in green loans and investments.
- Early-stage climate fintechs are starting to attract investor capital, but the bulk of investments are still going to more established green projects.
Climate change awareness is growing, and it’s starting to bring more capital along with it.
Global issuance of sustainable bonds and loans hit record highs of over $1.4 trillion in 2021 and could reach over $7 trillion annually by 2025, according to the Institute of International Finance.
Venture capital dollars have also been flooding climate tech over the last year. Here, startups raised around $40 billion across venture deals, with funding rising 20% sequentially over each quarter. Around 1,400 investment firms joined at least 1 climate tech deal in 2021, according to Climate Tech VC.
The wider macroeconomic and political environment has been contributing to this surge in interest. The current US administration has been putting climate change at the forefront of its agenda, promising to commit trillions of dollars towards climate-related investments and tasking regulators to assess the country’s resilience towards climate risks that threaten the economy as a whole.
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