RIYADH: In a move aimed at bolstering global sustainability efforts, HSBC has committed to providing $1 billion in financing to support early-stage climate tech companies. This initiative will support startups working on a range of solutions, spanning electric vehicle charging infrastructure, advanced battery storage, sustainable agriculture and food production, and innovative carbon removal technologies, the company said in a press release. Barry O’Byrne, the CEO of global commercial banking at HSBC, said: “Access to finance is critical for early-stage climate tech companies to create and scale real-world solutions. We are already working with some of the most exciting companies at the forefront of climate tech, from seed to global scale-up.” He added: “With HSBC’s global reach, in-house climate tech expertise, and newly launched Innovation Banking proposition, we can offer these pioneer companies unrivalled support.” HSBC’s commitment to this climate tech fund follows the establishment of HSBC Innovation Banking, a dedicated platform focusing on facilitating investments in technology and life sciences. Additionally, HSBC Asset Management introduced a Climate Tech Venture Capital strategy, which targets early-stage companies dedicated to advancing the transition to a net-zero economy. The press release added that half of the emissions reductions required to reach net zero in 2050 will come from technologies that are currently in the demonstration or prototype phase. “The Middle East has a key role to play in the transition to a net-zero global economy and with COP28 happening in the UAE this year, the focus on finance for climate-related projects from our clients around our MENAT region is a clear signal of the transformative investment opportunities that exist,” said Patricia Gomes, HSBC’s regional head of commercial banking in the Middle East, North Africa and Turkiye region. This financing announcement comes at a critical time, as venture capital funding for climate-focused startups experienced a notable 40 percent drop in the first half of 2023. While the majority of global early and growth stage climate tech investment has focused on the US and Europe, HSBC plans to allocate the $1 billion financing to companies anywhere in the world.