The hot topic — what does the political climate mean for greentech?

Esme Pearce
Advised Sales Development Representative
03 July 2024
3 minute read

Last week’s heatwave felt particularly well-timed for those focusing their political concerns around climate change and how greentechs globally will be implicated by recent and upcoming elections.

With Europe pledging to become the first climate-neutral continent by 2030, founders and VCs are watching closely to see where funding, investment and policy will direct the greentech sector.

Across the Channel

Summer is definitely the season of change, as member states of the EU elected a new European Parliament in early June. Results led to a political shift to the right, concerning climate activists about the prioritisation of the EU Green Deal, which was approved back in 2020.

According to Green Deal evangelists, “the Green Deal has set the EU on a path to sustainable growth, and has proven to be robust and convincing in challenging times”.

Over 400 stakeholders and companies have called for the newly-elected European Parliament to confirm the Green Deal as a priority, with the petition asserting that “it will ensure Europe is innovative, competitive and secure”.

The mission for ambition

In the UK, thousands of climate enthusiasts attended the “Glastonbury for energy nerds”. That’s what Ed Miliband, former Shadow Secretary of State of Climate Change, branded the Innovation Zero World Congress back in April.

Minus the wellies but accompanied by startups, scaleups and corporations from around the world, Miliband pointed to the importance of innovation in combating the climate crisis.

He declared that “the biggest risk to our country is not too much ambition, but too little… if you have good ideas before or after the election, I want to work with you”.

Stood in the London Olympia surrounded by hundreds of creators and innovators, all holding reusable cups, it was hard not to feel hopeful for a greener future, fuelled by ambition.

The sentiment of ambition was echoed by over 400 members of the UK's climate science community, who published an open letter urging all parties to “commit to an ambitious programme of climate policies” ahead of the UK’s general election on 4 July.

With voting beginning imminently, the fate of the greentech community still lies in the balance.

Green is the word

Ahead of voting in the UK, things are looking positive for the greentech community. Labour, Conservative, Liberal Democrats and Green have all pledged to achieve net zero in the UK by 2050, with some parties promising earlier deadlines. Only Reform UK has stated they would abandon any plans to achieve net zero.

An area of greentech that could be set to see huge investment is the clean energy sector. Labour’s plans for “Great British Energy, a new, publicly-owned clean energy company” could create ample opportunities for new and existing energy startups.

Investors have already signalled their interest in the green energy sector. Octopus Energy, for example, has raised well over $2bn from investors, while Zenobe Energy’s funding totals $1.4bn, and Newcleo has been named Europe’s only nuclear unicorn.

Credit where credit’s due

In the drive for decarbonisation, a new hybrid model has emerged. ‘Green fintech’ spans startups operating in the carbon removal industry such as Isometric, to carbon investment data providers like Sylvera, to climate project financers like Opna.

With investors taking to green finance like ducks to properly treated water, insurers are showing interest in this new sector too.

CFC, a specialist insurance provider, is entering the carbon market with a carbon delivery insurance product as they recognise that “the carbon credit industry is ‘clamouring’ for insurance capacity to unlock the growth potential in the emerging sector”.

It anticipates that the voluntary carbon credit industry could reach valuations of $1tn by 2050, and with the possibility of further funding from the elected government on Thursday, the voluntary carbon credit industry could be in luck.

They’re not the only ones in the insurance world with their eye on greentech. At Superscript, we’ve been supporting innovating greentechs get comprehensive insurance since day one.

You're protecting the world we live in, we're protecting you — it's a match made in heaven. We’re also following the EUs lead committing to be net zero by 2030, following our B Corp™ Certification in April.

This content has been created for general information purposes and should not be taken as formal advice. Read our full disclaimer.

Share this article

We've made buying insurance simple. Get started.

Related posts