TLDR:
EU cleantech debt investments reached record-breaking €16.7 billion in Q1 2024, double the amount from the entire 2023. Major trends include a surge in debt investments, narrowing investment disparities between Europe and North America, and increased deal sizes. Germany, Sweden, France, Spain, and the Netherlands were the most active countries for cleantech investments.
Article Summary:
In the first quarter of 2024, EU cleantech debt investment reached a record-breaking €16.7 billion, surpassing the total for all of 2023. The Cleantech for Europe Quarterly Briefing for Q1 2024 highlighted two significant trends: a surge in debt investments fueling cleantech ventures and a decrease in investment disparities between Europe and North America.
The average deal size in the EU increased by 15%, with late-stage investments experiencing a 31% increase in deal volume. Cleantech venture capital deals were spread across 17 EU member states, with Germany, Sweden, France, Spain, and the Netherlands leading the way. Germany remained the most active country for cleantech investments, followed by Sweden and France.
A significant amount of debt financing was required for the construction of new cleantech manufacturing facilities. The rise in debt funding for EU cleantech is seen as a positive sign, but more efforts are needed to ensure that innovative cleantech companies have access to financing for large-scale manufacturing projects.
To strengthen the EU’s long-term economic competitiveness, Cleantech for Europe called for a Cleantech Competitiveness Deal based on a Cleantech Investment Plan, sector-specific Action Plans, and continued funding for cleantech innovation and scaleup.
