In Europe there is twice as many climate technology startups as the USA (30,000 compared to 14,300). According to a new report, which was published at MUNICH Security Conference today, limited access to VC financial means forces these companies in the early phase to seek capital outside of the continent.
Between 2013 and 2023, venture financing in Europe was only 0.2% of GDP, a fraction of the US average of 0.7%. While the continent creates clean tech companies, it is not so good to finance them.
The authors of The importance of climate technology for European resilience Report – The World Fund, Kaya Partners and the worthwhile capital partners – fear that this trend is not only bad for business, but is also exposed to Europe and economic shocks. The dependency on foreign powers for everything, from solar collectors to EVS, is the resistance of Europe, they said.
They warn that Europe has lost the early advantage in the research on the climate that it set up in the 2010s. Germany offers a good example. Although it was a leader in solar and wind capacity in the early 2000s, he saw his progress after 2012 due to tariff and subsidy guidelines. As a result, the annual renewable capacity of 2012 reached 9.7 GW and remained below this level by 2022.
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“Thanks to its leadership in the innovation of climate technology, Europe has a second chance of building leading industries and strengthening its resistance,” said Danijel Višević, World Fund General and co-author of the White Paper. “We should not repeat the mistakes made in 2012, we should take advantage of our opportunities.”
The authors demand brave, long-term political and investment changes in four key areas: energy, nutritional security, border technologies and raw materials. You see the defense as a uniform thread in these sectors.
The most important recommendations for paper include improving the energy law, increasing long -term energy storage and supporting border technologies such as AI, fusion and quantum computers. It also requires an increase in the EU defense expenditure to at least 3% of GDP.
In addition, the Mario Draghi's report for 800 billion euros in the annual expenditure on public-private partnerships, regulatory tightening and expanded roles for institutions such as the European investment bank.
Together, these measures could offer a clear and solid basis for guidelines that actively strengthen resilience by 2029, according to the report.
The paper comes when the leaders of the world gather in tense times in global politics that strengthen the case for European independence in venture financing.
“Disorder is just around the corner” said Bo Lidegaard, partner at Kaya Partners and co-author of the White Paper. “Europe has to hug and develop creativity, innovation and entrepreneurship again, which are so deeply rooted with us. “
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