Echoing global headwinds for venture capital, European cleantech investment experienced a second slow quarter in a row. Bar a roaring Q4, 2022 will likely end somewhat below 2021, at least in terms of equity investment.

On the political side however, Europe is accelerating the pace of cleantech-related policymaking. Before the end of the year, legislators intend to finalise large portions of the Fit for 55 package of climate policy, this while in the middle of an unprecedented energy crisis. Important negotiations are also ongoing regarding the Innovation Fund, the EU’s main scale-up funding tool. The coming months will be crucial for the EU’s ability to lead the race to net zero, improve its energy security and reach industrial leadership.

Europe is also coming to the realisation that global competition for cleantech leadership is heating up. As more details of the US’ Inflation Reduction Act transpire, more and more European companies are considering a move stateside to benefit from the demand and subsidy bounty.
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Our collective cleantech movement is rising to this important moment. On October 12, we took part in the launch of a new Cleantech Friendship Group, gathering 16 Members of the European Parliament, coming together to create the conditions for European cleantech to succeed and scale. This is the first ever group of policymakers coming together to promote cleantech leadership. Days later, we announced the formation of a new Cleantech Scale-up Coalition, gathering eight of the leading cleantech companies in Europe, coming together to accelerate the rise of the next generation of European industry, with the support of Breakthrough Energy founder Bill Gates, and European Commissioner for Energy Kadri Simson.
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Beyond announcements, now is the time for bold action. Europe has a small window of opportunity to create a lasting cleantech leadership, and should do everything it can to seize it.