Primo Insights - Green Horizon, Unveiling Emerging Trends in Climate Tech (Primo Capital)

Summary

• The average rate of sea level rise accelerated to 3.7mm per year between 2006 and 2018, while over 3 billion people face heightened climate hazards.p.5
• Venture capital investments in Climate Tech increased 12.5x from 2013 to 2023, representing 10.2% of total startup investments in 2023.p.8
• Europe accounted for 73% of Climate Tech funds globally, capturing $10B in investments during its top quarter in Q3 2023.p.8
• The World Fund estimates an total required funding gap of $100 to $150 trillion to accelerate net-zero goals by 2050.p.8
• Global solar energy capacity additions reached 440GW in 2023, nearly doubling the 252GW installed in 2022.p.11
• Global investment in water technology reached $7.1 billion in 2021, addressing projections that water demand will exceed supply by 40% by 2040.p.13
• Primo Climate achieved its first closing at over €40 million in June 2024 to target early and growth-stage Climate Tech startups.p.19

Key insights

1. According to the IEA, 48% of CO2 emission reductions in a net-zero scenario will rely on technologies currently in demonstration or prototype stages.p.5
2. EU Directive 2024/825 targets greenwashing by banning vague environmental claims and uncertified marketing tactics.p.6
3. Sustainable fund flows in the US shrank by -$5.1M in Q4 2023, while European sustainable fund flows grew by +$3.3M over the same period.p.8
4. Unit costs for solar energy, wind energy, and lithium-ion batteries dropped by over 55% between 2010 and 2019.p.9
5. Fossil fuel emissions account for roughly 65% of all global greenhouse gas emissions driving climate change.p.11
6. Soil erosion affects 20% of the EU's surface area at an estimated loss rate of 10 tons/ha per year.p.12
7. Humanity emits around 37bn tons of CO2 annually, with 24% absorbed by oceans, 30% by forests, and the rest remaining in the atmosphere.p.14
8. In 2022, only 7,2% of the world economy was circular, down from 9% recorded five years prior.p.14
9. Energy sector digitalization could unlock $80 trillion in overall value by 2040 by lowering system operation costs by 10-20%.p.16
10. Primo Capital manages over 500 million euros committed across multiple funds focusing on Digital, Healthcare, Climate Tech, and Space Economy.p.19