US$ 651 Million Invested Towards Climate Tech Startups Across MENAT
New 'The State of Climate Tech Venture Capital Report’ underscores the significance of further advancements to bridge the remaining 35 percent emissions gap while existing technologies holding the potential to mitigate 65 percent of all emissions.
Issued by CE-Ventures in partnership with MAGNiTT, this report delves deep into the dynamic landscape of climate tech investments in the Middle East and North Africa and Türkiye (MENAT) region, providing a comprehensive overview of climate tech investments in the region and highlights the importance of harnessing innovative technologies to combat climate change.
According to the report, climate tech investments reached an unprecedented global total of US$ 82 billion in 2022, marking a 20 percent increase over the previous year. In the MENAT region, US$ 651 million were invested in 148 startups between 2018 and 2022. 2022 was also a record year for climate tech funding in the region with total investment crossing a quarter billion dollars for the first time ever and resulting in a 50 percent increase compared to the previous year. The UAE leads the region with 62 percent of total climate tech venture funding, while Türkiye saw the greatest number of deals at 80.
During H1 2023, the region has seen 30 transactions executed, which already represents 60 percent of the total number of transactions in the previous year. Startups in the agriculture sector, developing solutions towards climate resiliency, accounted for a majority of the venture capital invested over the past 5.5 years.
Badr Jafar, CEO of Crescent Enterprises and COP28 Special Representative for Business & Philanthropy said, "The Middle East is highly exposed to the effects of climate change. Our natural water scarcity, coupled with temperatures rising at twice the global average, foreshadow an increase in drought and extreme weather events that can impact hundreds of millions of lives. This Report highlights the ingenuity of our regional entrepreneurial ecosystem, where investors, ecosystem enablers, and policy leaders are coming together to develop a multi-pronged approach towards addressing climate change. We need to move faster, and together, if we are to meet the challenge and embrace this essential opportunity.”
The launch of the report is timely, as it is a month ahead of the beginning of COP28 UAE, which will include the convening of leading business leaders and philanthropists from around the world at ‘Business & Philanthropy Climate Forum’, COP28’s private sector engagement platform.