2021 saw an estimated €11 billion in investments flow into the European climate tech space, a figure more than double that of 2020. 2022’s numbers are diminished slightly (approximately €8 billion), however, this trend stays proportionally in line with the cooling off of investor appetites across the board.
The interest in, and associated capital behind it, climate tech becomes even more significant when you factor in that this €8 billion was allocated to just 234 European startups focusing on the sector.
As noted in our top 25 European tech funding deals of 2022 report, climate tech was the second most active vertical, superseded only by fintech, and the only sector to appear twice in the top 5 funding deals of 2022.
The top 5 European climate tech funding deals of 2022
5. EcoVadis - €480 million
France’s ESG rating provider offers clients an easy-to-use and actionable series of sustainability scorecards that provide insight into the company’s environmental, social, and ethical risks.
The €480 million round was led by General Atlantic’s SDG-focused unit BeyondNetZero and private equity firm Astorg, with the Government of Singapore Investment Corporation (GIC) and Princeville Capital participating.
4. Climeworks - €595 million
Swiss climate tech startup Climeworks engages in capturing CO2 from the air via commercial carbon dioxide removal technology. Orca, the startup’s CO2 removal plant based in Iceland, is the largest in the world.
Helping those that help us all breathe easier, Climeworks’ €595 million round was led by Partners Group and GIC and saw the participation of notables including Baillie Gifford, M&G, and Swiss Re.
3. Enpal - €855 million
Despite a sharp increase in demand and a Europe-wide shortage of modules, Berlin-based solar panel provider Enpal says it can continue to deliver on its promise to drive solar power adoption.
Announced just days ago, Enpal secured €855 million from sources:
- €585 million in debt commitments provided by BlackRock Alternatives, ING, Pricoa Private Capital (the private capital business of PGIM), and UniCredit
- €150 million via two ancillary working capital facilities provided by ING
- €120 million provided by Infranity, a Generali-affiliate in the form of a Holdco loan
2. Northvolt - €1 billion
Aimed at financing the expansion of its battery cell and cathode material production in Europe, Sweden’s Northvolt signed a $1.1 billion convertible note in early July.
Investors participating in the capital raise included Volkswagen Group, Baillie Gifford, AMF, AP funds 1-4, ATP, Ava Investors, Compagnia di San Paolo through Fondaco Growth, Folksam Group, Goldman Sachs, IMAS Foundation, Olympia Group, OMERS Capital Markets, PCS Holding, Swedbank Robur, and TM Capital.
1. Polestar - €1.6 billion
Gothenburg-based EV maker Polestar received €1.6 billion in financing support from two of its major shareholders, Volvo Car Group and PSD investment.
As part of the deal, Volvo, which owns just shy of 50% of Polestar said that its €800 million loan included options to convert some of its loans to equity in a possible future equity raising by Polestar.
And there we have it folks, the top 5 European climate tech funding deals of 2022. Stay tuned for a series of more focused snapshots of the industry — and find everything we've published so far over here.