Barclays Bank is poised to significantly increase its investments in climate technology startups, raising its commitment to £500 million with a focus on decarbonization initiatives.
Following a thorough analysis of growth prospects in the climate tech sector, Barclays plans to enhance its Sustainable Impact Capital investment mandate from £175 million in 2025 to £500 million by 2027.
Over the past two and a half years, the bank has already allocated £84 million to innovative startups, assisting them in scaling their operations and addressing funding gaps during their growth phases. These Sustainable Impact Capital investments have facilitated advancements in various areas of climate technology, including property retrofitting, long-duration energy storage, and hydrogen solutions.
Looking ahead, Barclays will intensify its focus on decarbonization technologies that aid in transitioning carbon-heavy industries, particularly in sectors where the bank has significant client relationships, such as energy, real estate, and transportation. Special emphasis will be placed on carbon capture and hydrogen innovation.
Daniel Hanna, Barclays’ global head of sustainable finance within the Corporate and Investment Bank, stated: “According to the final COP27 text, an estimated $4-6 trillion annually must be directed towards renewable energy and decarbonization solutions until 2030, encompassing investments in technology and infrastructure, to facilitate the achievement of net-zero emissions by 2050. Barclays is strategically positioned to scale the next generation of climate technologies instrumental in decarbonizing industries and fostering green job creation. Many essential technologies needed to accomplish Net Zero are currently not commercially viable. We can leverage our expertise as an advisor, bank, and investor through our Sustainable Impact Capital Programme to accelerate their development and market adoption.”
In November, Barclays experienced an unprecedented wave of climate activism, with hundreds of demonstrators taking action at over 100 branches across the UK to protest the bank’s investments in fossil fuels.