In 2021 alone, climate tech startups raised approximately US$16 billion, with at least US$1 billion pouring into the carbon removal market.

With the urgency to remove atmospheric carbon to prevent further global warming, the carbon removal market as well as the climate tech space is expected to continue to grow. However, as investors, what should you be focusing on?

Scalability and permanence of these projects are key. For example, the volume of carbon removal of these projects matter, if we are serious about removing close to 40 billion tons of carbon annually to reach net zero. Moreover, these projects also need to demonstrate resource efficiency and waste minimisation to prevent the emission of more carbon than they can remove. Also critical is the length of time the removed carbon can be stored - the longer that the removed carbon can be stored in the ground, saving repetitive removal in the future, the cheaper the operational costs.

#climatechange #climatetech #carbonremoval #sustainabledevelopment #climateinvestment #impactinvesting #greenfinance