HSBC Holdings, one of the world’s largest banks, has announced plans to allocate $1 billion in financing to support climate-tech startup companies around the world. The financing is expected to support start-ups in a variety of sectors, including EV charging, battery storage, sustainable food and agriculture, and carbon removal technologies.

“Access to finance is critical for early-stage climate tech companies to create and scale real-world solutions,” said Barry O’Byrne, CEO of global commercial banking at HSBC.

HSBC will also invest $100 million in Breakthrough Energy Catalyst, a platform that funds and invests in firms using emerging technologies to transition to cleaner sources of energy.

The funding announcement follows HSBC’s recent launch of HSBC Innovation Banking, a new unit focusing on banking services to start-ups, investors, and the wider tech community. HSBC also launched a new climate-tech venture capital strategy, which aims to invest in early-stage companies dedicated to achieving a net-zero transition.

The announcement comes as the global community is increasingly focused on the need to transition to a net-zero economy. Climate-tech startup companies are playing a vital role in this transition by developing new technologies and solutions that can help to reduce carbon emissions.

HSBC’s investment is a significant signal of its commitment to supporting the climate-tech sector. The bank has a long history of financing innovative and sustainable businesses, and its new investment is expected to help accelerate the development and deployment of climate-tech solutions.

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In addition to providing financing, HSBC is also offering a range of other support services to climate-tech companies, including access to its global network of clients and partners, as well as expertise in areas such as risk management and market access.

HSBC’s investment is expected to have a positive impact on the climate-tech sector in a number of ways. First, it will provide much-needed capital to early-stage companies that are developing new technologies and solutions. Second, it will help to raise awareness of the climate-tech sector and attract new investors. Third, it will help to accelerate the development and deployment of climate-tech solutions, which is essential for achieving a net-zero economy.

Here are some specific examples of how HSBC’s investment could support climate-tech companies:

• A start-up developing a new type of EV charger could use HSBC’s financing to build and scale up its operations.
• A company developing battery storage technology could use HSBC’s financing to build a new pilot plant.
• A company developing sustainable agriculture practices could use HSBC’s financing to expand its reach and impact.
• A company developing carbon removal technology could use HSBC’s financing to commercialize its technology.

HSBC’s investment in climate-tech is a positive step forward for the sector and for the fight against climate change. It is an example of how the financial sector can play a vital role in supporting the transition to a net-zero economy.